Alibaba (BABA): Q2 FY2026 Earnings Preview
Alibaba reports Q2 results Tuesday morning before the open…
Alibaba reports Tuesday morning. The consensus estimates look reasonable, but they don’t really capture the tone of management’s commentary over the last two quarters…
They’ve consistently pointed to more momentum than consensus is modeling.
If you want the broader thesis on Alibaba, I laid out my updated investment view in a deeper dive last week:
Two quarters ago, Cloud was growing at ~18%. Management said acceleration was coming.
Last quarter, Cloud jumped to ~26%. Now they’re signaling continued acceleration.
Most estimates have Cloud growth landing somewhere between the mid-20s and low-30s. It’s a reasonable range, but it largely reflects a “status quo” trajectory rather than the potential for continued improvement that management has been signaling.
What Management Actually Said About Cloud
Toby Xu stated directly on the last call:
“…that’s not just for this quarter, but we expect the following few quarters to also see increase in the growth rate in cloud.”