Rapid quick commerce expansion lifts Alibaba sales amidst net income decline

Net income for the quarter was $2,235m.

Alibaba Group Holding Limited has reported its fourth-quarter 2025 results, highlighting rapid expansion of its quick commerce business as a key driver of growth.

Alibaba’s China E-Commerce Group focused on scaling its quick commerce operations, improving user experience, and boosting operational efficiency.

The company reported month-over-month growth in average order value, supported by more efficient logistics, optimized order mix, and strong customer retention.

In a major branding move, Ele.me was rebranded as Taobao Instant Commerce, aligning it more closely with the Taobao app. The service was also integrated into the Qwen app on 15 January 2026, broadening its reach to more customers and making instant commerce more accessible.

Customer management revenue rose 1% year-over-year to $14,681m (RMB102,664m)

Despite slower growth due to weaker transaction activity and the reduced effect of prior software service fees, the Taobao app saw double-digit growth in monthly active users, reflecting the rising impact of quick commerce offerings.

Premium 88VIP membership surpassed 59 million members, marking strong double-digit year-over-year growth. Alibaba emphasized continued efforts to retain these high-value customers through enhanced membership benefits.

Alibaba reported total revenue of $40,732m (RMB284,843m) for the quarter, representing a 2% increase year-over-year.

On a like-for-like basis, excluding the disposed businesses of Sun Art and Intime, revenue grew 9% compared to the same period last year. Net income for the quarter was $2,235m (RMB15,631m), a decline of 66% year-over-year, mainly due to lower operating income. Non-GAAP net income was $2,389m (RMB16,710m), down 67% from the same quarter in 2024.

Alibaba International Digital Commerce Group narrowed losses through logistics optimization and improved investment efficiency.

AliExpress Choice improved sequentially, whilst the company expanded offerings through partnerships, including selling high-quality South Korean products via Lazada following its joint venture with Shinsegae.

The AliExpress “Brand+” program accelerated onboarding of international brands, driving strong quarter-over-quarter sales growth.

The company said that the continued growth of quick commerce, combined with international expansion, positions the company for long-term sustainable growth despite near-term profit pressures.