Alibaba grew revenue in both its fiscal Q4 and 2026, which ended March 31, as executives credited investments in the company’s full-stack artificial intelligence (AI) technology.
AI-related product revenue at Alibaba reached about $1.322 billion in Q4, marking the 11th consecutive quarter of triple-digit year-over-year growth, the company said.
“We are at a pivotal inflection point in the evolution from conversational chatbots to autonomous AI agents, which is directly driving explosive growth across three core workload categories: training, inference and agent orchestration,” said Yongming Wu, CEO and head of core ecommerce business at Alibaba, on the company’s Q4 earnings call with analysts. “Against this backdrop, Alibaba’s AI has moved beyond the initial investment phase and progressed commercialization at scale.”
He added that the company expects AI-related products to account for more than 50% of its Cloud Intelligence Group’s revenue in about a year. That would make it the primary growth engine driving that business’s revenue, he said.
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.
Where Alibaba is expanding its AI capabilities
The company said its Alibaba China E-commerce Group segment prioritized integrating AI capabilities with its ecommerce applications. On the consumer side, it integrated Taobao and Tmall’s ecommerce services into Alibaba’s Qwen app. The Taoabao app also launched the Qwen Shopping Assistant, an AI agent for product discovery, in-sale support, order management and post-purchase services. For merchants, the segment rolled out an enterprise-level AI agent called Wukong to help with efficiency, Alibaba said.
The segment’s number of 88VIP members, its highest-spending consumer group, increased by double digits to exceed 62 million users, Alibaba said.
Also during the quarter, Alibaba launched an AI agent called Accio Work, which builds on its existing Accio technology. The latter launched in November 2025 as an AI-powered B2B sourcing engine. By March 2026, Alibaba said Accio attracted more than 10 million monthly active users globally.
Alibaba’s chip-design subsidiary, T-Head Semiconductor, has deployed more than 100,000 of its Zhenwu parallel-processing units (PPUs). The company released the chips in January. It designed them to accelerate AI training and inference. Alibaba said more than 30 automobile makers and autonomous driving companies leverage the chips for research and development surrounding autonomous driving.
“The Zhenwu chips, together with Alibaba Cloud and Qwen models, form a fully integrated technology stack that significantly accelerates both training and inference efficiency,” the company said.
Alibaba revenue growth in Q4 2026
In its fiscal Q4, Alibaba revenue reached $35.28 billon. That was a 3% increase in revenue from Alibaba’s fiscal Q4 2025.
For its full fiscal 2026, Alibaba revenue reached $148.40 billion. That was also 3% year-over-year growth.
“To help merchants grow their businesses and increase willingness to spend on our platform, we upgraded our business development program for select merchants during the quarter, under which the level of platform subsidies for these merchants is directly tied to their marketing spend on our platform,” Alibaba said in its earnings release. “For accounting purposes, such subsidies previously recorded as sales and marketing expenses are now recorded as a contra revenue item to customer management revenue (CMR).”
Alibaba revenue from customer management grew 1% during the quarter for its China E-commerce Group.
Revenue from Alibaba’s Clout Intelligence Group increased 38% year over year in its fiscal Q4, reaching about $6.04 billion.
Meanwhile, the Alibaba International Digital Commerce Group (AIDC) narrowed its loss year over year, approaching a point of breaking even, the company said. That narrowing stemmed from a combination of optimizing logistics and improving operating efficiency, according to Alibaba.
Percentage changes may not align exactly with dollar figures due to rounding. Check back in for more earnings updates. Here’s last quarter’s update about Alibaba revenue and earnings.
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