BABA CY3Q25: Revenue Growth Accelerates to 34%，Customer Demand Outpaces Supply

Alibaba Cloud delivered another quarter of accelerating growth, with total cloud revenue/external cloud revenue up 34% YoY / 29% YoY, surpassing management’s preview of “30%+ YoY” and ahead of some buy-side expectations (based on pre-earnings checks, most investors were modeling a wide 33–35% YoY). AI-related revenue achieved nine consecutive quarters of YoY growth. Management did not comment on the progress of Alibaba’s in-house ASIC efforts, which is likely a sensitive topic under the current environment.

A notable change this quarter is that the earnings presentation began with AI and cloud, underscoring that this business is now top priority within the group.

Despite the strong headline print, there were some imperfections beneath the surface.

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Mixed Dynamics Within Cloud Revenue

Last quarter, Alibaba Cloud disclosed 26% YoY growth for both total cloud revenue and internal cloud revenue (consumed by other Alibaba Group businesses such as Amap and Quark with external revenue also growing 26% YoY.