FY2027 EPS Estimates for Alibaba Group Reduced by Analyst

Key Points

• Erste Group Bank trimmed its FY2027 EPS estimate for Alibaba to $5.71 from $5.73, slightly below the broader consensus forecast of $6.28 per share. The firm also projected FY2028 EPS at $8.07.
• Alibaba’s latest reported quarter showed just $0.01 EPS on $35.30 billion in revenue, with a net margin of 10.31% and return on equity of 4.76%. That suggests profitability remains modest relative to its scale.
• Despite mixed signals, Wall Street sentiment stays constructive, with a Moderate Buy consensus and an average price target of $186.90. Recent coverage includes both bullish price targets and upside tied to Alibaba’s AI-related role in Apple Intelligence in China.

Alibaba Group Holding Limited (NYSE:BABA - Free Report) - Research analysts at Erste Group Bank decreased their FY2027 earnings per share estimates for Alibaba Group in a report issued on Wednesday, July 15th. Erste Group Bank analyst S. Lingnau now anticipates that the specialty retailer will post earnings per share of $5.71 for the year, down from their previous forecast of $5.73. The consensus estimate for Alibaba Group's current full-year earnings is $6.28 per share. Erste Group Bank also issued estimates for Alibaba Group's FY2028 earnings at $8.07 EPS.

Alibaba Group (NYSE:BABA - Get Free Report) last issued its quarterly earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 EPS for the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. The firm had revenue of $35.30 billion for the quarter.

BABA has been the subject of several other reports. BNP Paribas Exane started coverage on Alibaba Group in a research note on Wednesday, April 29th. They set an "outperform" rating and a $209.00 price objective for the company. HSBC set a $170.00 price objective on shares of Alibaba Group in a research note on Thursday, July 9th. Weiss Ratings reissued a "hold (c+)" rating on shares of Alibaba Group in a research report on Wednesday, May 27th. Freedom Capital upgraded shares of Alibaba Group from a "hold" rating to a "strong-buy" rating in a research report on Friday, April 24th. Finally, Wall Street Zen raised shares of Alibaba Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $186.90.

Alibaba Group Stock Down 0.1%

NYSE BABA opened at $117.61 on Friday. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.28 and a quick ratio of 1.28. The company has a market capitalization of $282.34 billion, a P/E ratio of 19.31, a PEG ratio of 2.17 and a beta of 0.51. Alibaba Group has a 12 month low of $91.99 and a 12 month high of $192.67. The company's 50 day simple moving average is $117.16 and its 200 day simple moving average is $135.36.

Alibaba Group Dividend Announcement

The business also recently announced an annual dividend, which was paid on Monday, July 13th. Shareholders of record on Thursday, June 11th were paid a dividend of $1.05 per share. The ex-dividend date of this dividend was Thursday, June 11th. This represents a dividend yield of 93.0%. Alibaba Group's dividend payout ratio (DPR) is 16.91%.

Insider Buying and Selling at Alibaba Group

In other news, insider Fang Jiang sold 4,898 shares of the company's stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $12.09, for a total value of $59,216.82. Following the transaction, the insider directly owned 5,559,511 shares of the company's stock, valued at approximately $67,214,487.99. This represents a 0.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Fan (Fj) Jiang sold 13,579 shares of the stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $12.10, for a total value of $164,305.90. Following the sale, the chief executive officer owned 556,617 shares of the company's stock, valued at approximately $6,735,065.70. This represents a 2.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 920,303 shares of company stock worth $70,796,370 over the last 90 days. 12.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Alibaba Group

Several institutional investors have recently made changes to their positions in the company. Capital World Investors raised its position in Alibaba Group by 7.7% during the fourth quarter. Capital World Investors now owns 6,505,165 shares of the specialty retailer's stock valued at $953,527,000 after acquiring an additional 466,847 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in shares of Alibaba Group by 7,680.3% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer's stock worth $881,554,000 after buying an additional 5,936,847 shares during the last quarter. Fisher Asset Management LLC boosted its stake in shares of Alibaba Group by 0.8% during the 4th quarter. Fisher Asset Management LLC now owns 5,335,894 shares of the specialty retailer's stock worth $782,135,000 after acquiring an additional 42,297 shares in the last quarter. Norges Bank bought a new stake in shares of Alibaba Group during the 4th quarter worth about $594,477,000. Finally, AMF Tjanstepension AB increased its holdings in shares of Alibaba Group by 4.1% during the 1st quarter. AMF Tjanstepension AB now owns 2,206,634 shares of the specialty retailer's stock valued at $276,844,000 after acquiring an additional 86,613 shares during the last quarter. 13.47% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Alibaba Group

Here are the key news stories impacting Alibaba Group this week:

• Positive Sentiment: China’s approval of Apple Intelligence using Alibaba’s Qwen model boosted optimism that Alibaba can benefit from a high-profile AI partnership and expanded visibility for its technology business.
• Positive Sentiment: Analyst commentary remained supportive, with Alibaba receiving an average “Moderate Buy” recommendation, reinforcing a constructive sentiment backdrop for the stock. Alibaba Group Holding Limited NYSE: BABA Given Average Recommendation of "Moderate Buy" by Analysts
• Neutral Sentiment: Several news items simply repeated the Apple-China approval story and the resulting rally in Alibaba shares, suggesting the market is still digesting the strategic importance of the deal. Apple Intelligence approved for launch in China with Alibaba and Baidu
• Neutral Sentiment: Separate legal-notice articles from Rosen and Pomerantz disclosed investigations into possible securities claims, which can add headline risk but do not by themselves confirm wrongdoing. Alibaba Investor News: If You Have Suffered Losses in Alibaba Group Holding Limited NYSE: BABA, You Are Encouraged to Contact The Rosen Law Firm About Your Rights
• Negative Sentiment: One analyst-focused article highlighted that Alibaba’s stock is still down meaningfully year to date, citing profit pressure, higher AI spending, and legal overhangs as ongoing concerns that could limit upside. Alibaba Plunges 19.7% YTD: Hold the Stock or Book Profits Now?

Alibaba Group Company Profile

Alibaba Group Holding Limited is a Chinese multinational conglomerate founded in 1999 in Hangzhou, China, by Jack Ma and a group of co‑founders. The company built its business around internet-based commerce and related services and has grown into one of the largest e-commerce and technology companies in the world. Alibaba completed a high‑profile initial public offering on the New York Stock Exchange in 2014.

The company operates a portfolio of online marketplaces and platforms serving different customer segments: Alibaba.com for global and domestic B2B trade, Taobao for consumer-to-consumer shopping, and Tmall for brand and retailer storefronts targeted at Chinese consumers.

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