10:27 AM EDT, 05/15/2025 (MT Newswires) -- Alibaba Group's ( BABA ) fiscal fourth-quarter earnings and revenue rose year over year but missed Wall Street's estimates despite the Chinese e-commerce giant recording double-digit sales growth in its cloud business.

The company reported adjusted earnings of 12.52 renminbi ($1.73) per American depositary share for the March quarter, up from 10.14 renminbi a year earlier. The consensus on FactSet was for 12.56 renminbi. Revenue improved 7% year over year to 236.45 billion renminbi, but missed the Street's view for 239.63 billion renminbi.

Alibaba's ( BABA ) New York Stock Exchange-listed shares declined 7.1% in Thursday's trading session.

"Our results this quarter and for the full fiscal year demonstrate the ongoing effectiveness of our 'user first, (artificial intelligence)-driven' strategy, with core business growth continuing to accelerate," Chief Executive Eddie Wu said in a statement.

Revenue in the cloud intelligence business rose 18% to 30.13 billion renminbi, buoyed by robust demand for AI, with product revenue related to the technology achieving triple-digit growth. The company aims to continue to drive AI and cloud as a "new engine" for its long-term growth, the CEO added.

Sales in the Taobao and Tmall group segment gained 9% to 101.37 billion renminbi. Within this division, China commerce retail moved higher to 95.58 billion renminbi from 88.26 billion renminbi in the prior-year quarter, with customer management increasing 12%, "reflecting the sustained impact of investments in user experience and effective monetization," according to Wu. China commerce wholesale sales climbed 17% to 5.79 billion renminbi.

The international digital commerce business advanced 22% to 33.58 billion renminbi. Local services revenue increased 10%, while Cainiao Smart Logistics Network slid 12% in the quarter. Digital media and entertainment revenue increased 12% on a yearly basis.

"We are confident in our business outlook and will continue to invest in our core businesses to strengthen our competitive advantages," Chief Financial Officer Toby Xu said.

Price: 124.55, Change: -9.50, Percent Change: -7.09