Overview
- Jefferies cut its price target on Alibaba to $212 from $225 and kept a Buy rating after the December-quarter update.
- Alibaba reported $40.7 billion in revenue, up 2% year over year, and logged a 10th straight quarter of triple-digit AI product sales growth.
- Cloud Intelligence Group revenue rose 36% to $6.19 billion in the quarter ended December 31, 2025.
- Non-GAAP net income fell 67% to $2.38 billion as CFO Toby Xu said Alibaba will step up AI and cloud spending, including agentic AI in Taobao and Tmall that can handle tasks for users.
- Jefferies projects external cloud sales could grow more than 40% a year to about $100 billion in five years, with Model-as-a-Service letting customers rent AI models, and it sees international commerce losses narrowing by March 2026.