Alibaba Group Holding Limited · Q2 2026
ReportedAug 20, 2026
Period endedJun 30, 2026
Rule of 40−2
Consensus vs reported
EPS · NON-GAAP
MISS −21%
$1.26
vs $1.60 expected
QoQ+1274%
YoY−42.2%
Revenue
IN LINE
$39.64B
vs $39.63B expected
QoQ+12.3%
YoY+14.7%
QoQ and YoY are measured on the same basis as each panel's own consensus, so no panel compares two different measures.
The quarter in short
Revenue $39.64B, up 14.7% year over year and 12.3% on the quarter. Non-GAAP EPS $1.26, down 42.2% year over year. GAAP EPS $0.55. Free cash flow −$6.58B, down 150.7% year over year and 162.5% on the quarter. Non-GAAP EPS missed consensus by 21%. Rule of 40 score −2.
Reported this quarter
Revenue
$39.64B
QoQ +12.3%
YoY +14.7%
EPS · NON-GAAP
$1.26
QoQ +1274%
YoY −42.2%
EPS · GAAP
$0.55
QoQ −63.3%
YoY −78.1%
Free Cash Flow
−$6.58B
QoQ −162.5%
YoY −150.7%
Gross Margin
38.2%
QoQ +3.7 pp
YoY −6.7 pp
FCF Margin
-16.6%
QoQ −9.5 pp
YoY −9.0 pp
P/E Ratio
23.2
QoQ +12.8%
YoY +76.2%
Each tile opens the full quarterly series. Download the numbers as CSV or JSON.
What we learned
- The cash bars were missed by a distance, not a whisker. The preview set two: trailing free cash flow improves on any print better than −$2,626M , and reaches zero at +$3,954M . The print was −$6,584M .
- Our Rule of 40 grid was too narrow, and the reason is capex. The preview built a grid of plausible outcomes and said "the whole grid sits between +0.9 and +7.2" . The quarter printed −1.9 .
- The AI burn now has its own segment, and it is larger than it looked. Alibaba recut its reporting this quarter, pulling the model labs, Qwen Consumer and QwenWork out of "All Others" into AI Labs and Applications .
- Revenue met expectations exactly and earnings missed all of them. Against LSEG's RMB 268,880m the print was +0.03% — in line. Non-GAAP EPS per ADS was $1.26 against a $1.60 consensus, a 21% miss , and below the bottom of the $1.49–1.94 band the estimates spanned.
- The commercial thesis is working while the cash thesis is not. Cloud external revenue growth accelerated to 45% , AI-related product revenue reached RMB 12,376 million — a twelfth consecutive triple-digit quarter, and 25.6% of cloud — and cloud's adjusted EBITA rose 133% to an 11.6%…
Coverage around this release
R40
Alibaba's 1.6-Cent Cache Hit Is a Tenth of Input. So Are OpenAI's and Google's. Only Google Charges Rent.
Radar · Aug 27, 2026
R40
Alibaba Raised 1.4 Years of Its AI Revenue, Not Two. Neither Named Use of the Money Is the Model.
News · Aug 25, 2026
R40
Alibaba Called Its Placement a 3.6% Discount. Hong Kong Priced It at 8.37%.
News · Aug 24, 2026
R40
Alibaba Is Selling 710 Million New Shares to Fund AI. Is Baidu Next?
News · Aug 23, 2026
R40
Alibaba Cloud Grew 45% as Free Cash Flow Fell to −$6.6B and Revenue Missed Our Range.
News · Aug 20, 2026
R40
Alibaba Burned $6.6B on AI and Retail. This Quarter Can Show Whether Either Is Paying.
News · Aug 19, 2026
R40
Alibaba Joins Coverage With a Rule of 40 of About One
News · Aug 17, 2026
Estimate against reported
Our published estimate
Reported EPS
| Quarter | Estimate | Reported | Surprise |
|---|---|---|---|
| 2024 Q3 | — | $2.59 | — |
| 2024 Q4 | — | $2.79 | — |
| 2025 Q1 | — | $0.71 | — |
| 2025 Q2 | — | $2.51 | — |
| 2025 Q3 | — | $1.23 | — |
| 2025 Q4 | — | $0.85 | — |
| 2026 Q1 | — | $1.50 | — |
| 2026 Q2 | $1.60 | $1.26 | −21% |
Estimates are the consensus we published on our own preview for that quarter; quarters we did not preview carry the reported figure only. Where a consensus was set on a non-GAAP basis, the reported column shows that same measure.
Sources & downloads
Company
Published by the company on the day of the release.
HTML
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SEC filings
Filed with the SEC under CIK 1577552.
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Company facts (XBRL)
Every figure BABA has reported to the SEC
R40 data
The numbers shown on this page, as we hold them.
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This quarter (CSV)
Reported metrics for Q2 2026, spreadsheet-ready
JSON
This quarter (JSON)
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