Alibaba Group Holding Ltd. (NYSE:BABA) reported mixed results for its first quarter on Thursday.
Alibaba reported fiscal first-quarter 2027 revenue of $39.64 billion, up 9% year over year and above the $38.63 billion analyst estimate. However, adjusted earnings per ADS fell 42% to $1.26, missing expectations of $1.85. Adjusted net income declined 38% to $3.05 billion, while adjusted EBITA fell 30% to $4.03 billion. Net income plunged 75% to $1.54 billion.
“We delivered a strong quarter, driven by the improving commercialization of our full‑stack AI capabilities,” said Eddie Wu, Chief Executive Officer of Alibaba Group. “Alibaba Cloud’s external revenue growth accelerated to 45%, with AI-related product revenue delivering triple-digit growth for the twelfth consecutive quarter. We recently launched frontier language, coding, video, audio, image and music models, all delivering top-tier performance. We introduced QwenWork, an AI workforce agent that unleashes enterprise productivity and capabilities. With our full‑stack AI strategy, we have put Alibaba in a superior position to capture the substantial growth of demand for artificial intelligence and AI compute.”
Alibaba shares dipped 8.4% to trade at $119.62 on Friday.
These analysts made changes to their price targets on Alibaba following earnings announcement.
- Baird analyst Colin Sebastian maintained the stock with an Outperform rating and lowered the price target from $164 to $160.
- Barclays analyst Jiong Shao maintained the stock with an Overweight rating and raised the price target from $195 to $200.
- JP Morgan analyst Alex Yao maintained the stock with an Overweight rating and raised the price target from $205 to $210.
Considering buying BABA stock? Here’s what analysts think:
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