Alibaba Group’s fourth-quarter results highlight the company’s accelerating momentum in B2B ecommerce, as its international digital commerce (AIDC) and cloud segments deliver robust growth powered by AI and infrastructure investments.
With cross-border trade and enterprise solutions at the center of its strategy, Alibaba is positioning itself as a global B2B platform of choice in the AI era.
Revenue for Alibaba’s AIDC segment rose 22% year over year, driven by continued expansion in cross-border ecommerce and improvements in operational and investment efficiency. While still posting a loss of RMB3.6 billion, the unit narrowed losses from RMB4.1 billion in the prior year. And it’s still on track to achieve overall quarterly profitability in fiscal 2026.
“Strong momentum in cross-border trade, diversified market presence, and localized supply chain models are making our B2B platforms more resilient and competitive,” said CEO Eddie Wu. “AIDC is building long-term capabilities in product sourcing, logistics, and AI-driven merchant tools to support small and medium-sized businesses globally.”
Alibaba owns the world’s two largest online marketplaces by gross merchandise value (GMV), Taobao and Tmall. Taobao ranks No. 1 in the Global Online Marketplaces Database. The database is Digital Commerce 360’s ranking of the largest such marketplaces by GMV. Tmall ranks No. 2. Both platforms operate in China and primarily serve the Chinese market. Among Alibaba’s other marketplaces is the global B2B marketplace Alibaba.com.
Alibaba B2B ecommerce growth in Q4
Alibaba is investing in differentiated business models across markets. One such example is AliExpress Choice, which continues to improve its unit economics by optimizing supply chains and merchant networks. The company emphasized that it’s deepening relationships with local merchants in key areas to increase product diversity and speed to market.
Beyond marketplaces, Alibaba’s Cloud Intelligence Group — closely tied to the company’s B2B ambitions — delivered 18% revenue growth in Q4. Public cloud revenue surged, with enterprise adoption of AI solutions expanding across traditional verticals such as manufacturing, logistics, agriculture, and financial services.
Of note, the Industrial and Commercial Bank of China (ICBC) selected Alibaba Cloud’s PolarDB as its enterprise-wide distributed database. That’s a significant endorsement of Alibaba’s B2B capabilities in high-compliance, mission-critical sectors. ICBC is the world’s largest bank by assets.
How Alibaba is using AI
Alibaba revenue from its AI product sustained triple-digit growth for the seventh consecutive quarter. It’s now integrating its AI-driven tools into key functions in B2B commerce:
- Procurement systems
- Inventory management
- Customer service
- Global logistics
Developers and enterprises have downloaded the company’s open-source Qwen3 AI model family over 300 million times globally. They have also adopted it to create vertical-specific solutions.
“Our AI products are being adopted not just by digital-native companies, but by traditional enterprises reinventing their operations,” said Toby Xu, chief financial officer. “We see B2B digital transformation as a generational opportunity.”
As Alibaba exits consumer-facing legacy assets like Sun Art and Intime, it is doubling down on core growth areas, including:
- B2B trade
- AI infrastructure
- Enterprise software
The company expects $2.6 billion in proceeds from recent divestitures. That would enable it to reinvest in high-growth initiatives while improving returns to shareholders.
This quarter alone, Alibaba returned $16.5 billion to shareholders through dividends and buybacks, including a special dividend of $0.95 per ADS, reflecting its capital discipline and confidence in long-term B2B-driven growth.
With a strong net cash position of RMB366.4 billion ($50.5 billion), the company has ample liquidity to fund further international expansion, logistics network upgrades, and AI-based services for enterprise customers.
Alibaba is sharpening its strategy around AI-enabled B2B ecommerce, blending platform scale, cloud computing, and open innovation to drive digital trade transformation across global markets.
From SMEs accessing affordable sourcing tools to large enterprises modernizing their operations with AI-powered cloud services, Alibaba is building the infrastructure for the next era of global B2B commerce.
“We’re executing with speed and precision,” Wu said. “Whether it’s merchants using our platforms to reach new buyers, or enterprises deploying our cloud services to streamline global operations, Alibaba is becoming an indispensable partner in B2B digital transformation.”
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