Alibaba Posts Strong Q2 2025 Results: Cloud & AI Drive Growth
NEW YORK, NY – november 19, 2024 - Alibaba Group Holding Ltd (NYSE: BABA) today announced robust financial results for its fiscal second quarter of 2025, demonstrating continued growth fueled by its investments in cloud computing and artificial intelligence. The company reported a 15% year-over-year revenue increase (excluding Sun Art and Intime), signaling a healthy trajectory despite ongoing economic headwinds.
During the earnings call, Alibaba executives highlighted significant gains in both its Cloud Intelligence and China E-Commerce divisions.China E-commerce CMR (Customer Management Revenue) grew by 10%,while Cloud Intelligence revenue surged 34%.
AI & Cloud: A Powerful Combination
A key driver of this success is the escalating demand for AI solutions. Alibaba reported triple-digit year-over-year growth in AI-related products for the ninth consecutive quarter. The company is capitalizing on two major trends in the cloud computing landscape: the increasing need for full-stack AI technology and the broadening adoption of AI across various applications.
“As AI applications scale, more developers and enterprise customers are choosing vendors with full stack AI technology portfolios,” explained Eddie Wu, Alibaba’s Chief Executive Officer, during the call. “Customers are deepening and broadening their use of AI which is significantly increasing demand for compute storage and other traditional cloud services.”
Alibaba Cloud is solidifying its position as a leader in the market, with revenue from external customers accelerating by 29%. the company is gaining market share in key segments, including the hybrid cloud and financial cloud sectors. Specifically, Alibaba Cloud’s hybrid cloud business grew over 20% year-over-year, outpacing industry growth.
QN-3 Max: A Competitive Edge
Alibaba’s flagship AI model, QN-3 Max, is proving to be a significant differentiator. The model ranks among the global leaders in benchmarks for real-world coding tasks, agent tool use, and other specialized evaluations.This full-stack AI capability is now considered a defining competitive advantage for the company.
Looking Ahead
The results indicate Alibaba is successfully navigating a dynamic market by focusing on innovation and strategic investments. The company’s commitment to AI and cloud technologies appears to be paying off, positioning it for continued growth in the coming quarters.
Disclaimer: This article contains forward-looking statements based on information provided during Alibaba Group’s earnings call. Actual results may vary.
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