Alibaba FY26 Revenue Hits $152.8B as MercadoLibre Grows 39.1%
Alibaba reports $152.8 billion in annual revenue with a 10.1% net margin, while MercadoLibre posts 39.1% growth and $28.9 billion in sales.
Key points
- Alibaba reported $152.8 billion in FY2026 revenue with a 10.1% net margin and negative $7.6 billion free cash flow.
- MercadoLibre achieved 39.1% revenue growth to $28.9 billion in FY2025, with a net margin of 6.9%.
- Alibaba’s Qwen app has over 300 million monthly users, while MercadoLibre serves 131 million buyers in Latin America.
Alibaba Group concluded its fiscal year ended March 31, 2026, with revenue of $152.8 billion, marking a 2.7% increase over the prior period. The company generated net income of $15.5 billion, resulting in a net margin of 10.1%. According to data highlighted by Yahoo Finance, this performance underscores the scale of its commerce and cloud ecosystem, despite facing intense domestic competition.
MercadoLibre, operating across 18 Latin American countries, reported fiscal year 2025 revenue of $28.9 billion, a 39.1% year-over-year rise. Net income stood at $2.0 billion, yielding a 6.9% net margin. The divergence in growth rates reflects the distinct economic landscapes in China and Latin America, where MercadoLibre continues to expand its fintech and logistics networks.
Profitability and Balance Sheet Metrics
Alibaba’s balance sheet as of March 2026 shows a debt-to-equity ratio of 0.2x and a current ratio of 1.3x. However, free cash flow was negative $7.6 billion for the fiscal year, calculated as operating cash flow minus capital expenditures. This negative figure indicates significant reinvestment in infrastructure and technology, including its generative AI initiatives.
MercadoLibre recorded a debt-to-equity ratio of 1.7x and a current ratio of 1.2x in December 2025. While conventional free cash flow was $10.8 billion, the company’s adjusted free cash flow was approximately $1.5 billion. The discrepancy arises because operating cash flow includes substantial movements related to fintech operations and customer funds, which does not directly equate to corporate cash generation.
Operational Scale and User Base
Alibaba’s ecosystem includes platforms such as AliExpress, Lazada, and Trendyol, serving both Chinese and international markets. Its consumer-facing Qwen application has surpassed 300 million monthly active users, highlighting the integration of generative AI into its core business. The company operates as a dominant technology entity in the region, balancing commerce with cloud services.
MercadoLibre serves over 131 million unique buyers, leveraging a logistics network and third-party sellers for the majority of sales volume. The company integrates payment processing and financial services across its market, positioning itself as the leading commerce and fintech provider in Latin America. This broad user base drives its high revenue growth rate relative to its profit margins.
Regulatory and Competitive Risks
Alibaba faces a complex regulatory environment in China, where operational requirements can change suddenly. Geopolitical tensions may also impact its ability to expand cloud services and international commerce platforms. Intense domestic competition, characterized by aggressive pricing strategies, continues to pressure its market share and profitability.
MercadoLibre operates in a volatile macroeconomic environment, facing competition from global giants like Amazon and fintech rivals like Visa. The company relies on platforms such as Apple and Alphabet for app distribution and critical cloud infrastructure. These dependencies introduce operational risks that differ from Alibaba’s primarily regulatory and geopolitical challenges.
