Key Takeaways:
- Alibaba's international commerce narrowed adjusted EBITA losses in fiscal 2026
- Earnings projected to grow 15.28% in fiscal 2027, per consensus estimates
- BABA shares fell 33.5% in six months, trading at 14.78 times forward earnings
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Alibaba international commerce narrows losses as earnings seen rising 15%
Alibaba Group's international commerce business narrowed its adjusted EBITA loss in fiscal 2026, bringing the segment closer to break-even as logistics improvements and AI tools strengthened unit economics.
"The Brand+ initiative is attracting higher-quality brands and consumers, supporting stronger monetization," Alibaba's management said in its fiscal 2026 results. AI-powered tools such as Accio and Accio Work are helping merchants automate sourcing, product listings and business operations.
The Alibaba International Digital Commerce Group, which includes AliExpress, Alibaba.com, Lazada and Trendyol, reduced losses through improved logistics efficiency and optimized operations. Alibaba.com's B2B marketplace spans buyers in more than 190 countries, generating revenue from memberships, value-added services, logistics and digital marketing. The company has also expanded its Trade Assurance program into additional markets.
Earnings are projected to grow 15.28% in fiscal 2027, according to the Zacks Consensus Estimate, with fiscal 2028 EPS seen at $9.53 — a 76.86% year-over-year increase. The consensus estimate for fiscal 2027 EPS has declined 6.78% to $6.88 over the past 60 days. BABA shares have declined 33.5% over the past six months, compared with a 4.2% drop for the industry. The stock trades at 14.78 times forward earnings, a discount to the industry multiple of 21.63.
Amazon challenges Alibaba through its international marketplace, fulfillment network and Prime membership program, benefiting from seller-friendly policies including lower fees in Europe and Brazil. Global-e Online competes by enabling brands to sell globally through localized merchant-of-record services, offering compliance, duties and fulfillment capabilities.
Investors should monitor regulatory risks in Europe, where increased compliance requirements could raise operating costs for marketplace operators.
The narrowing losses in a key growth segment show improving profitability and operational efficiency for Alibaba. Investors will watch the next quarterly report for further progress on the international commerce division's path to sustained profitability.
This article is for informational purposes only and does not constitute investment advice.
