Alibaba Cloud posts 26% growth as AI fuels surge in earnings

Alibaba’s cloud unit reported 26% year-on-year revenue growth, hitting $4.66 billion in Q1 2026, with AI products driving the momentum. AI-related revenue alone delivered triple-digit gains for the eighth straight quarter, now making up over 20% of external customer sales. The results put Alibaba on par with U.S. hyperscalers like Microsoft and Google, while a new partnership with SAP underscores its growing global influence in cloud and enterprise AI.