The Hangzhou-based company is one of the biggest players in China’s tech industry, with operations spanning retail, digital payment, artificial intelligence (AI) and entertainment.
This year has seen its share price rollercoaster on a wave of investor enthusiasm about Chinese AI capabilities that began in January, followed by a steep drop last month triggered by US President Donald Trump’s global tariff blitz.
The firm’s revenue during the fiscal year ended March 31 totalled ¥996.3 billion (US$138.2 billion), according to results posted to the Hong Kong Stock Exchange, up 6% from the previous 12-month period.
Net income attributable to ordinary shareholders rose to ¥129.5 billion, the statement showed, a jump of 62% year-on-year according to AFP calculations.
In the final quarter alone, Alibaba saw revenue of ¥236.5 billion, narrowly coming up short of a Bloomberg forecast.
Net income attributable to ordinary shareholders during the quarter reached ¥12.4 billion, surging 279% from the low base of ¥3.3 billion recorded during the same period last year.
“Our results this quarter and for the full fiscal year demonstrate the ongoing effectiveness of our ‘user first, AI-driven’ strategy, with core business growth continuing to accelerate,” CEO Eddie Wu said in a statement.
The growth is another positive sign for China’s tech sector, which has garnered revamped interest from investors since the shock release in January of advanced AI chatbot DeepSeek – apparently developed at a fraction of the cost thought necessary.
Alibaba and fellow tech giants Tencent and Baidu are now funnelling large sums into a new race to develop and integrate the most cutting-edge AI applications.
Spending slump
As the Chinese economy strains under sluggish spending and a tumultuous trade relationship with the US, Beijing is increasingly looking to platforms operated by domestic internet giants as a cushion for employment and consumption.
Prospects improved Monday when Beijing and Washington announced plans to significantly scale back sky-high tariffs that had severely threatened trade between the two nations.
However, economists say that the Chinese economy may still struggle to achieve the official growth target set by leaders of around 5% this year.
Alibaba’s announcement today came after Tencent and e-commerce giant JD.com posted moderate increases in first-quarter revenue earlier this week, indicating a possible rebound in spending.
However, official figures released on Saturday showed that consumer prices remained mired in a slump last month, reflecting continued deflationary pressure.
Alibaba was once a key subject of the aggressive regulatory crackdown launched in late 2020 on the domestic tech sector, attributed to worries in Beijing that top firms had become too powerful.
Jack Ma, the firm’s charismatic co-founder who had spoken boldly about the shortcomings of China’s financial and regulatory system, kept a low profile during the lengthy campaign.
He reappeared in February during a meeting with President Xi Jinping and other business luminaries – a shock development that suggested a warmer stance from Beijing and sent Alibaba stocks soaring.
Ma is no longer an executive at Alibaba but is believed to retain a significant shareholding in the company.