Alibaba’s Hong Kong-listed shares declined 2.2% to HK$123.4 on Friday, underperforming the Hang Seng Index after the company reported weaker-than-expected earnings for the first quarter of fiscal 2027.
The ecommerce giant posted a 75.56% year-over-year collapse in net profit attributable to ordinary shareholders, while earnings per share came in at RMB 8.52, missing the market consensus of RMB 10.72. Revenue grew 9% to RMB 268.95 billion, but operating profit fell 57% year-over-year.
Profitability was pressured by goodwill impairment charges and a RMB 550 million fine imposed by the European Union for digital services violations. Analysts noted that a sharp slowdown in Alibaba’s core ecommerce business continued to weigh on results.
The company’s cloud segment provided a bright spot, with revenue accelerating to 45% growth. AI-related product revenue also recorded triple-digit gains for the twelfth consecutive quarter, signaling sustained investment in artificial intelligence and cloud infrastructure.
Despite the earnings miss, several analysts maintained Buy or Outperform ratings, citing the strong performance of the cloud business. JD.com, a rival in the ecommerce sector, rose 0.4% during the session.
