Alibaba Q1 Results Prompt Multiple Analyst Target Price Adjustments

Alibaba Group Holding Ltd. reported mixed first-quarter results on Thursday.

Alibaba reported fiscal 2027 first-quarter revenue of $39.64 billion, up 9% year-over-year, surpassing analyst expectations of $38.63 billion. However, adjusted earnings per American Depositary Share fell 42% to $1.26, missing the expected $1.85. Adjusted net income declined 38% to $3.05 billion, while adjusted EBITA fell 30% to $4.03 billion. Net income plunged 75% to $1.54 billion.

"We delivered a strong quarter, driven by improved commercialization of our full-stack AI capabilities," said Eddie Wu, Chief Executive Officer of Alibaba Group. "Alibaba Cloud external revenue growth accelerated to 45%, with AI-related product revenue achieving triple-digit growth for the twelfth consecutive quarter. We recently launched cutting-edge models for language, coding, video, audio, image, and music, all delivering industry-leading performance. We introduced QwenWork, an AI workflow agent, unlocking enterprise productivity and capabilities. With our full-stack AI strategy, we have positioned Alibaba favorably to capture the immense growth in AI and AI computing demand."

Alibaba shares fell 8.4% on Friday, trading at $119.62.

The following analysts adjusted their price targets on Alibaba following the earnings release.

Baird analyst Colin Sebastian maintained an Outperform rating on the stock, lowering the price target from $164 to $160.

Barclays analyst Jiong Shao maintained an Overweight rating, raising the price target from $195 to $200.

JPMorgan analyst Alex Yao maintained an Overweight rating, raising the price target from $205 to $210.

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