Chinese tech giant Alibaba on Thursday reported net income had dropped 66% year-over-year, as it missed analyst revenue expectations.

Here’s how Alibaba performed its fiscal quarter, ending Dec. 31, 2025:

• Revenue: 284.8 billion Chinese yuan ($41.4 billion), compared to the 290.7 billion Chinese yuan expected by analysts, according to data compiled by LSEG.

Alibaba is one of several Chinese AI firms that have been rushing to catch up to U.S. companies in the AI race.

It’s pledged tens of billions of dollars in investments in AI and cloud infrastructure, as it looks to transition from being just an e-commerce giant to an AI leader.

In January, the tech giant announced a new AI model series, and has also been investing in ‘agentic commerce’ as it looks to turn chatbots into full-service shopping and payment tools.