Alibaba Reports 84% Drop in Adjusted EBITA Despite Strong Cloud Growth Driven by AI

• May 13, 2026

Chinese technology giant Alibaba has disclosed a significant decline in its adjusted earnings before interest, taxes, and amortization (EBITA), reporting a drop of 84% compared to the previous year. The company’s adjusted EBITA amounted to 5.1 billion yuan (approximately $750.9 million), marking a sharp downturn in its core profitability measure.

Cloud Business Sees Robust Growth Amid AI Demand

Despite the steep fall in overall adjusted EBITA, Alibaba’s cloud computing segment demonstrated notable revenue growth, rising by 38% year-over-year. The surge in this division’s income was largely attributed to increasing demands for artificial intelligence technologies, signaling a strategic area of focus for the company moving forward.

Alibaba’s cloud platform has been positioning itself to capitalize on the expanding AI market, which has been a major growth driver in the global technology sector. Industry demand for AI-powered solutions in cloud services continues to accelerate, and Alibaba’s performance underscores the potential upside from this trend, even as the broader business faces challenges.

The company’s CEO highlighted the importance of AI investments, describing the returns as “absolutely obvious,” suggesting that the technology initiatives could play a critical role in future profitability. However, specific details regarding the impact of AI developments on Alibaba’s overall financial health were not disclosed.

Alibaba’s earnings report reflects the complex environment in which major Chinese tech companies are operating, balancing short-term financial pressures with long-term strategic investments in emerging technologies. The cloud unit’s growth serves as a positive indicator of the company’s ability to adapt and scale within the increasingly AI-centric technology landscape.

Further information regarding the company’s financial outlook, detailed segment performance, and plans for AI integration will be critical to watch as Alibaba navigates the evolving market conditions.

Alibaba’s adjusted EBITA plummeted 84% year-over-year, yet its cloud division saw a 38% revenue boost fueled by AI demand.