Alibaba Posts Strong Q2 2025 Results: Cloud & AI Drive Growth
NEW YORK, NY – november 19, 2024 -โข Alibaba Group Holding Ltd (NYSE: BABA)โค today announced robust financial โคresults for its fiscal second quarter of 2025, demonstrating continued โคgrowth fueled by itsโข investments in cloud computing and artificial intelligence. The companyโ reported a 15% year-over-year revenue increase (excluding Sun Art and Intime), signaling a healthy trajectory despite ongoing โขeconomic headwinds.
During the earnings call, Alibaba executives highlighted significant gains in both its Cloud Intelligenceโฃ and China E-Commerce divisions.China E-commerce CMR (Customer Management Revenue) grew by 10%,while Cloud Intelligenceโ revenue โฃsurged 34%.
AI & Cloud: A Powerful Combination
A key driver of this success is the escalating demand for AIโ solutions. โขAlibaba 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 โthe cloud computing landscape: the increasing need for full-stack AI technology and the broadening adoption โof AI across โฃvarious applications.
“As AI applications scale, more developers and enterprise customers are choosing vendors with full stackโ AI technology portfolios,” explained Eddie Wu,โ 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 otherโ traditional cloud services.”
Alibabaโฃ Cloud โis solidifyingโ its position as a leader โขin the market, with revenue from external customers accelerating by 29%. the company is gaining market share in keyโ segments, including the hybrid cloud and financialโ cloud sectors.โ Specifically, โคAlibaba Cloud’s hybrid cloud business grew over 20% year-over-year, โขoutpacing industry growth.
QN-3 Max: A Competitive Edge
Alibaba’s flagship AI model, QN-3 Max, is โฃproving to be a significant differentiator. โคThe modelโค ranks amongโ the global leaders in benchmarks for real-world coding tasks, agent tool use, and otherโฃ specialized evaluations.This full-stack AI capability is now โฃconsidered a defining competitive advantage for the company.
Looking Ahead
The results indicate Alibaba is โฃsuccessfully navigating a dynamic market by focusing on innovation and strategic investments. The company’sโค commitment to AI and cloud technologies appears to be paying off, positioning it for continuedโฃ growth in the coming quarters.
Disclaimer: This article contains forward-looking โฃstatements based on information provided during Alibaba Group’s earnings call. Actual results mayโค vary.
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