Alibaba Group Smashes Q4 2025 Expectations with Record-Breaking Growth
Alibaba Group, the Chinese e-commerce giant, has delivered a stellar performance in its fiscal year 2025 fourth quarter, exceeding expectations and showcasing the company's commitment to innovation and growth. In a recent conference call, the company revealed that its total revenue, excluding Sun Art and Intime, grew by a staggering 10% year-over-year, while adjusted EBITDA increased by 36% year-over-year.
The company's CEO, Eddie Wu, attributed this success to the firm's user-first AI-driven strategy, which has been instrumental in driving growth across its core businesses. This approach has enabled Alibaba to establish a well-defined growth portfolio centered on AI plus cloud, e-commerce, and other Internet platform businesses.
One of the most significant highlights from the quarter was the impressive 18% year-over-year revenue growth achieved by Alibaba Cloud. Public cloud revenue also accelerated, with revenue from AI-related products maintaining triple-digit year-over-year growth for the seventh consecutive quarter. This is a testament to the company's strategic investment in AI infrastructure and advanced technologies.
The firm's confidence in its ability to meet growing customer demand for cloud and AI services remains unchanged. Despite uncertainties in the global AI supply chain, Alibaba continues to see strong and unwavering customer demand. The company is actively exploring diversified solutions to meet this rising demand, pushing the boundaries of model capabilities through foundational research and innovation.
In April, Alibaba released its next-generation QN3 model as open source, ranking amongst the top performers globally on multiple authoritative benchmarks. This move has resulted in over 200 models under the QN family being open-sourced, with more than 300 million downloads worldwide and over 100,000 derivative models – making it the world's largest open-source model family.
The adoption of AI plus cloud across various industries is also gaining momentum. Large and mid-sized enterprises are expanding their use cases from internal systems to customer-facing applications, while small and medium-sized businesses are rapidly adopting AI products. This quarter saw significant growth in demand for AI applications in traditional industries such as animal farming and manufacturing.
In the financial sector, Alibaba continues to deepen its industry leadership. The Industrial and Commercial Bank of China (ICBC) has officially selected Alibaba Cloud's Polar DB as its enterprise-wide transactional distributed database – a strong endorsement of the company's technological capabilities by one of the most demanding financial institutions in terms of business performance and technology requirements.
