Alibaba Group Holding is expected to report revenue growth of more than 50% in its AI Cloud and Compute Services unit for the quarter ended September 30, up from 45% in the previous quarter, analysts said.

They also expected profit margins in Alibaba’s cloud and AI unit to improve, suggesting the company is making progress in generating returns from its AI investments.

Alibaba Cloud said in May 2026 that its cloud revenue growth had risen to 40%.

Alibaba had previously announced plans to invest 380 billion yuan (US$56.7 billion) in AI and cloud infrastructure over three years.

The company said in April 2026 that it remained Asia Pacific’s largest cloud provider by revenue, with growing market share.

Changes to US export controls on AI chips for China could limit the supply of computing power.

🔗 Source: South China Morning Post

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