Alibaba Stock (BABA) Breakout Intensifies Ahead of Earnings Report

Alibaba Group Holding Ltd. (BABA) enters its Q1 FY2026 earnings announcement with robust momentum, following a record FY2025 performance. Revenue grew 7% year-on-year, while earnings per share skyrocketed 72% driven by operational efficiency, cost discipline, and strategic bets on AI and cloud infrastructure. The stock has outpaced the S&P 500 with a 50% rally year-to-date.

Taobao and Tmall's e-commerce resurgence, combined with AI-fueled demand for Alibaba Cloud, positions the company for sustained growth. Analysts highlight the stock's attractive valuation and potential breakout above the $145 technical threshold—a key level that could trigger further upside.

The March 2025 quarter capped the fiscal year with a 36% surge in adjusted EBITA to $4.5 billion and a 93% leap in operating income to $3.9 billion. Quarterly revenue reached $32.6 billion, up 7%.