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Free cash flow has deteriorated to -$44.7B in 2027Q1 as capital expenditures surged to 25.2% of revenue, overwhelming operating cash generation and indicating a strategic pivot that may be masking the true economic cost of growth.
Alibaba Group Holding Limited (BABA) cash flow statement — 20-year operating, investing & financing cash flows
| Metric | TTM | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Cash from Operations | 78.02B | 76.21B | 164.82B | 184.01B | 199.9B | 140.39B | 223.63B | 185.21B | 151.01B | 118.04B | 82.02B | 57.81B | 41.99B | 28.11B | 15.17B | 9.26B | 9.26B | 2.24B | 1.58B | 1.41B | 730.67M |
| Operating CF Margin % | - | 7.45% | 16.54% | 19.55% | 23.01% | 16.46% | 31.18% | 36.34% | 40.07% | 47.17% | 51.82% | 57.16% | 55.11% | 53.53% | 43.96% | 46.24% | 166.62% | 57.82% | 52.63% | 65.16% | 53.57% |
| Operating CF Growth % | -167.96% | -53.76% | -10.43% | -7.95% | 42.39% | -37.22% | 20.74% | 22.65% | 27.93% | 43.91% | 41.88% | 37.67% | 49.4% | 85.24% | 63.86% | 0% | 313.37% | 41.7% | 12.18% | 92.87% | - |
| Net Income | 73.53B | 102.13B | 130.51B | 80.36B | 72.56B | 60.93B | 145.02B | 153.07B | 87.62B | 60.34B | 44.6B | 72.69B | 24.22B | 23.65B | 8.38B | 4.17B | 4.17B | 1.18B | 1.42B | 1.15B | 291.39M |
| Depreciation & Amortization | 44.09B | 47.12B | 31.1B | 45.28B | 38.19B | 44.97B | 45.41B | 43.3B | 36.94B | 20.64B | 14.49B | 6.74B | 4.41B | 1.68B | 918.27M | 858.16M | 858.16M | 126.58M | 77.22M | 59.26M | 54.04M |
| Stock-Based Compensation | 6.63B | 11.18B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 237.88M | 194.9M | 152.08M | 113.9M |
| Deferred Taxes | 0 | -2.53B | 377M | -5.3B | -1.72B | -1.35B | 3.12B | -3.53B | -2.2B | 920.43M | 286.94M | 1.25B | 1.66B | 1.49B | 102.14M | 147.96M | 147.96M | -7.25M | -35.49M | -121.41M | -81.74M |
| Other Non-Cash Items | -45.76B | -59.14B | 27.02B | 77.52B | 77.38B | 53.69B | -18.66B | -29.6B | -3.61B | 15.32B | 15.24B | -30.79B | 9.01B | 4.5B | 1.74B | 2.21B | 2.21B | -219.39M | -501.89M | -406.31M | -23.16M |
| Working Capital Changes | 0 | -22.55B | -24.18B | -13.86B | 13.49B | -17.85B | 48.73B | 21.96B | 32.26B | 20.82B | 7.41B | 7.93B | 2.7B | -3.21B | 4.04B | 1.88B | 1.88B | 925.98M | 430.69M | 576.16M | 376.24M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -606.39M | 0 | 0 | -11.65B | 0 | -3.13B | -459.66M | -459.66M | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 21.84B | 5.42B | 8.24B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.18M | -5.48M |
| Cash from Investing | -105.15B | -67.34B | -206.61B | -26.27B | -137.2B | -190.54B | -235.79B | -115.29B | -142.39B | -78.05B | -78.95B | -44.27B | -53.36B | -33.47B | 535.25M | -123.3M | -123.3M | -1.22B | -3.1B | -101.95M | -794.37M |
| Capital Expenditures | -155.49B | -126.06B | -86.66B | -33.18B | -34.38B | -52.44B | -41.67B | -46.54B | -49.65B | -28.14B | -17.92B | -11.03B | -7.69B | -4.84B | -2.46B | -2.14B | -2.14B | -410.74M | -266.54M | -139.81M | -96.69M |
| CapEx % of Revenue | 14.89% | 12.31% | 8.7% | 3.53% | 3.96% | 6.15% | 5.81% | 9.13% | 13.18% | 11.24% | 11.32% | 10.91% | 10.09% | 9.23% | 7.12% | 10.68% | 38.48% | 10.6% | 8.87% | 6.46% | 7.09% |
| Acquisitions | 0 | 12.11B | -22.02B | -5.42B | -2.16B | 723.77M | -18.42B | -6.51B | -26.74B | 544.15M | -32.37B | 3.51B | -10.24B | -789.2M | 785.69M | -207.14M | -207.14M | -414.8M | -9.51M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 50.34B | -95M | -71.57M | 742.71M | 922.68M | -888.99M | -899.2M | -35.89M | 7M | 10.37M | 3.06M | 35.6M | -171.69M | -13.19M | -9.82M | -2.38B | -2.38B | 178.94M | -2.83B | 37.87M | -697.68M |
| Cash from Financing | -7.61B | -20.57B | -57.12B | -104.81B | -64.07B | -68.13B | 29.21B | 77.12B | -16.1B | 18.14B | 32.08B | -16.18B | 87.34B | 9.5B | -1.38B | 468.54M | 468.54M | -958.01M | -78.87M | 2.63B | -196.61M |
| Debt Issued (Net) | 57.5B | 39.03B | 60.4B | 2.48B | 11.35B | -7.16B | 30.25B | -16.43B | -4.23B | 31.71B | 29.95B | 2.52B | 26B | 12.97B | 26.45B | 119.35M | 119.35M | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -1.8B | -6.6B | -87.35B | -88.58B | -74.79B | -60.1B | -576.95M | 93.84B | -10.52B | 376.28M | 1.46B | -19.43B | 61.33B | 1.95B | -12.55B | 194.32M | 194.32M | -69.75M | -78.87M | 2.82B | 0 |
| Dividends Paid | -33.31B | -33.73B | -29.31B | -18.08B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -103.81M | -211M | -101.16M | 0 | 0 | -888.26M | 0 | -195.91M | -196.61M |
| Share Repurchases | -1.8B | -7.64B | -87.36B | -89.43B | -74.8B | -60.21B | -745.79M | 0 | -10.87B | 0 | -13.46B | -20.13B | -392.3M | -159.26M | -39.39B | -415.27M | -415.27M | -69.8M | -78.87M | -112.25M | 0 |
| Other Financing | -30B | -19.28B | -867.9M | -621.78M | -633.47M | -866.37M | -454.42M | -285.08M | -1.35B | -13.95B | 668.85M | 734.4M | 118.79M | -5.21B | -15.18B | 154.86M | 154.86M | 0 | 0 | 0 | 0 |
| Net Change in Cash | -33.94B | -15.7B | -100.37B | 40.6B | -17.31B | -115.66B | 38.97B | 139.27B | -22.96B | 69.5B | 28.66B | -7.05B | 72.42B | 3.83B | 14.1B | 20.17B | 0 | 59.74M | -1.63B | 3.88B | -260.53M |
| Free Cash Flow | -77.47B | -50.72B | 78.16B | 150.82B | 165.52B | 87.95B | 181.96B | 138.67B | 101.36B | 89.91B | 64.11B | 46.78B | 34.3B | 23.26B | 12.72B | 7.12B | 7.12B | 1.83B | 1.31B | 1.27B | 633.98M |
| FCF Margin % | -7.42% | -4.96% | 7.84% | 16.03% | 19.05% | 10.31% | 25.37% | 27.2% | 26.9% | 35.92% | 40.5% | 46.25% | 45.01% | 44.31% | 36.84% | 35.56% | 128.14% | 47.22% | 43.75% | 58.69% | 46.48% |
| FCF Growth % | -304.45% | -164.9% | -48.18% | -8.88% | 88.2% | -51.67% | 31.22% | 36.81% | 12.73% | 40.24% | 37.04% | 36.38% | 47.46% | 82.95% | 78.54% | 0% | 289.28% | 39.19% | 3.54% | 100.23% | - |
| FCF per Share | -32.07 | -21.10 | 32.37 | 59.27 | 62.72 | 32.29 | 66.22 | 51.97 | 38.64 | 34.45 | 24.92 | 18.26 | 13.72 | 9.44 | 5.48 | 3.07 | 2.81 | 0.72 | 0.52 | 0.52 | 0.27 |
| FCF Conversion (FCF/Net Income) | -1.05x | 0.74x | 1.27x | 2.30x | 2.75x | 2.26x | 1.49x | 1.24x | 1.72x | 1.84x | 1.88x | 0.81x | 1.73x | 1.21x | 1.78x | 2.19x | 6.30x | 2.21x | 1.37x | 1.46x | 3.32x |
| Interest Paid | 0 | 9.38B | 0 | 0 | 5.64B | 4.89B | 4.1B | 4.89B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 26.48B | 21.47B | 20.9B | 31.73B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying BABA stock.
Alibaba Group Holding Limited (BABA) generated $76.21B in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Alibaba Group Holding Limited (BABA) reported negative free cash flow of $50.72B in 2026, indicating capital requirements exceeded cash from operations.
Alibaba Group Holding Limited (BABA) spent $126.06B on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Alibaba Group Holding Limited (BABA) returned $33.73B to shareholders via cash dividends and spent $7.64B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Margin compression from reinvestment
Earnings Quality Volatility Masks Cash Generation
The relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from 0.38 to 7.27 over the past ten quarters, suggesting significant non-cash items and working capital volatility distort reported profitability.
The extreme volatility in the OCF/NI ratio indicates that net income is a poor proxy for underlying cash generation in any given quarter. For instance, the 2024Q4 ratio of 7.27 suggests a large non-cash charge depressed net income, while the 2026Q4 ratio of 0.38 implies significant cash was consumed by items not reflected in earnings. This inconsistency makes it difficult to assess the true quality of earnings without a deeper dive into the specific drivers of each quarter's accruals and non-cash adjustments.
FCF Trajectory Deteriorates Sharply
Free cash flow has swung from a robust $69.6B in 2025Q3 to a negative $44.7B in 2027Q1, driven by a massive surge in capital expenditures that has overwhelmed operating cash generation.
The FCF margin has collapsed from a peak of 24.8% to -16.7%, a dramatic reversal that aligns with the prior finding of margin compression from reinvestment. This trajectory suggests the company is in a heavy investment cycle, likely funding logistics, cloud infrastructure, and competitive subsidies. The sustainability of this negative FCF path is questionable without a clear path to returns on this invested capital, especially as core e-commerce growth decelerates.
Capex Surge Signals Strategic Pivot
Capital expenditures have escalated dramatically, reaching $67.7B in 2027Q1 and representing 25.2% of revenue, a stark increase from the 0.7% ratio seen in 2025Q3.
The CapEx/Rev ratio's explosion from sub-1% to over 25% in a short period indicates a fundamental shift in capital allocation, moving from an asset-light marketplace model to a capital-intensive infrastructure build-out. This likely reflects massive investments in Cainiao logistics, cloud data centers, and possibly physical retail. The scale of this spending warrants scrutiny on the expected return on invested capital (ROIC), as it is directly eroding free cash flow and may be a response to competitive threats rather than purely opportunistic growth.
Capital Deployment Shifts to Buybacks
After a period of minimal shareholder returns, the company initiated a $33.3B dividend and $1.8B in buybacks in 2026Q2, signaling a strategic pivot toward returning capital amid slowing organic growth.
The sudden return of capital to shareholders in 2026Q2, following quarters of zero payouts, suggests management is responding to the deceleration in core business growth and the need to support shareholder value. However, this return of capital coincides with the period of peak capital expenditure, creating a tension between funding growth investments and rewarding shareholders. The sustainability of this dual approach is questionable if FCF remains negative.
Cash Flow Obscures Investment Intensity
The cash flow statement may understate the true economic cost of growth, as the massive CapEx surge could be masking the full impact of competitive subsidies and investments in new, unprofitable business lines.
While the CapEx line captures tangible asset investments, it may not fully account for the cash consumed by aggressive subsidies to merchants and consumers to fend off competitors like Douyin and PDD. Furthermore, the consolidation of lower-margin businesses like Cainiao and Freshippo inflates revenue but depresses operating cash flow margins, potentially obscuring the cash generation profile of the core, high-margin marketplace business. Investors should monitor the OCF margin ex-Cainiao/Freshippo if possible to isolate the core platform's cash dynamics.