Alibaba Group Holding Limited Q2 2026 Earnings Results vs. Expectations

What the Street expects

QoQ and YoY are what the consensus implies against the prior quarter and the prior year.

Q2 2026 reported results

What to watch

1. Free cash flow against −$2,626M and +$3,954M. The first is the level at which the trailing line stops deteriorating; the second is the level at which a year of burn nets to zero.
2. Model and application services ARR. RMB 10bn was called "highly certain" on the last call. It is the only forward number management attached that word to.
3. AI-related product revenue, and whether the triple-digit streak reaches twelve quarters. RMB 8,971m in March, ~30% of Cloud's external revenue.
4. The "All others" adjusted EBITA line. It swung from a RMB 3.4bn loss to a RMB 21.2bn loss in March — that single line was about 62% of the group's entire year-over-year adjusted-EBITA decline, and it is where the Qwen consumer app's user-acquisition spend la…
5. Operating margin . March came in at −0.35% , the first operating loss in the tracked window, with gross margin at 34.51% against 38.4% and cost of revenue at 65.5% of revenue, up 3.9 points. That is the subsidy war above the line.

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Estimate against reported

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.

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