Alibaba Group delivered a solid performance in its fiscal second quarter, with B2B global commerce emerging as the key growth driver.

For its fiscal Q2 ending Sept. 30, Alibaba reported revenue of $33.7 billion. That’s a 5% year-over-year increase, and a net income of $6.32 billion.

“Alibaba’s international digital commerce revenue growth remained robust, while cloud revenue, excluding our consolidated subsidiaries, grew steadily, supported by an increasing contribution from AI products,” CEO Eddie Wu shared with analysts. “We’ve enhanced operational efficiency, strengthened monetization capabilities, and improved the performance of our loss-making businesses across segments.”

Alibaba owns the world’s two largest online marketplaces by gross merchandise value (GMV), Taobao and Tmall. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by GMV. Tmall ranks No. 2. Both platforms operate in China and primarily serve the Chinese market. Among Alibaba’s other marketplaces is the global B2B marketplace Alibaba.com.

Alibaba’s revenue rises 29% in Q2

In Q2, Alibaba International Digital Commerce (AIDC) revenue rose 29% year-over-year to $4.51 billion.

“This strong performance was driven by the growth of cross-border businesses, particularly AliExpress’ Choice program. Platforms like AliExpress and Trendyol continue to invest in building brand recognition in key markets across Europe and the Gulf region,” the company noted. “Simultaneously, we’ve enhanced operational efficiency, leading to sequential improvements in the unit economics of the Choice business.”

The company remains heavily invested in artificial intelligence. In September, Alibaba committed $20 million to Connectly, a developer of AI-powered ecommerce applications that help online sellers create personalized digital marketing campaigns. Connectly’s platform enables businesses to automate customer interactions across messaging apps.

“We are committed to advancing technology and optimizing operational efficiency to deliver cost-effective, reliable AI solutions across industries,” Wu added. “As AI adoption accelerates, Alibaba Cloud’s cloud computing and AI-related products will form the foundational infrastructure for industry development. In international ecommerce, this strategy positions us for continued growth.”

Check back in for more earnings updates. Here’s last quarter’s update about Alibaba revenue and earnings.

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