Alibaba Expands AI Business and International Commerce as Quarterly Revenue Reaches US$40.7 Billion
Alibaba reported quarterly revenue of US$40.7 billion for the December quarter, representing a 2% increase from a year earlier. Excluding businesses that have been divested, revenue grew 9%, reflecting continued expansion across its core operations despite varying performance among business segments.
The results highlight the company’s ongoing strategy of strengthening its international commerce operations while accelerating investments in artificial intelligence, which has become an increasingly significant contributor to revenue growth.
International commerce remained one of Alibaba’s fastest-growing businesses. During fiscal year 2025, revenue from its international commerce segment increased 29% compared with the previous year, supported by continued expansion of its cross-border e-commerce platforms and overseas operations.
Artificial intelligence also continued to gain commercial traction. Alibaba reported that its AI products generated 8.971 billion yuan in revenue during the latest quarter. AI-related services now account for more than 30% of the company’s external commercialization revenue, while annualized AI revenue has exceeded 35.8 billion yuan.
The figures reflect the growing monetization of Alibaba’s AI portfolio following years of investment in large language models, enterprise AI solutions and cloud-based artificial intelligence services.
The company’s wholesale marketplace, Alibaba.com, also recorded increased business activity across Europe. Orders for B2B cooling equipment posted strong year-over-year growth in multiple European markets, indicating rising demand from business buyers using the platform for international sourcing.
Alibaba also reported continued expansion in its exporter ecosystem. As of March 2026, the number of exporters using Alibaba.com increased 20% compared with the previous year, reflecting broader adoption of the platform among businesses seeking access to global markets.
On the consumer side, Alibaba’s AI-powered commerce initiatives continued to attract users. The company said the AI shopping features integrated into the Qwen App reached approximately 140 million users by February, underscoring growing adoption of generative AI tools designed to enhance product discovery, recommendations and shopping experiences.
The latest results illustrate Alibaba’s increasing emphasis on artificial intelligence as a strategic growth driver alongside international expansion, as the company continues integrating AI capabilities across enterprise services, digital commerce and cross-border trade.
