Alibaba Reports Q3 FY2026 Results, Highlights AI Chip Growth

On March 19, Alibaba Group released its Q3 FY2026 financial results:

• Revenue: RMB 284.84 billion, up 2% year-on-year (or 9% excluding disposed businesses such as Intime and Sun Art Retail).
• Alibaba Cloud: Revenue surged 36%, with AI-related products achieving triple-digit growth for the tenth consecutive quarter.
• Adjusted net profit: RMB 16.71 billion.
• Adjusted EBITDA: RMB 34.06 billion.

Following the announcement, Chairman Joe Tsai, CEO Wu Yongming, CFO Xu Hong, and Alibaba E-commerce CEO Jiang Fan joined a conference call to interpret the results.

PingTouGe (T-Head) AI Chips

CEO Wu Yongming revealed:

• PingTouGe AI chips are now widely deployed in Alibaba Cloud’s “Bailian” training and inference scenarios.
• Over 60% of Alibaba Cloud’s public and hybrid cloud products used by external commercial customers rely on PingTouGe chips.
• These customers span internet, smart driving, and intelligent manufacturing industries.
• PingTouGe has achieved full commercialization, with shipments exceeding 470,000 chips and annualized revenue surpassing RMB 10 billion.
• Production capacity for high-quality AI chips will continue to expand in 2026–2027, ensuring sufficient computing power for Alibaba’s AI business.
• Wu added that an IPO is possible in the future, though no timeline has been set.

This quarter’s results underscore Alibaba’s accelerating cloud growth and the commercial success of its in-house AI chip unit, positioning the company strongly in the global AI and cloud computing race.