Alibaba's March quarter (Q4 FY2026) closed the books on a fiscal year in which the company is openly pivoting its capital toward two new engines while the legacy cash cow bleeds. Revenue grew 3% year-over-year to RMB243,380 million (US$35,283 million), but operating income swung to a RMB848 million loss versus a RMB28,465 million profit a year earlier, and the company reported an Adjusted EBITA of just RMB5,102 million, down 84% - the entire decline absorbed by the new Taobao Instant Commerce quick-commerce buildout and a step-up in user-acquisition spend for the Qwen app. Cloud Intelligence Group external revenue accelerated to 40% year-over-year in the quarter, with AI-related products already accounting for 30% of that line, and full-year Cloud revenue grew 34% to RMB158,132 million (US$22,924 million), the fastest growth in the segment in years. Net income nevertheless rose 96% to RMB23,502 million, propped up by a RMB33,823 million interest and investment gain that reversed a prior-year loss - a tailwind the operating business did not earn. With capital return of roughly US$3.5 billion for the year (US$1.05 per ADS dividend plus US$1.0 billion in repurchases) and RMB520,824 million of cash and other liquid investments on the balance sheet, the open question for the next six months is not whether the AI cloud business is real, but whether the RMB1 trillion China retail franchise can earn a return on the capital being deployed against it. The market's verdict so far: shares trade at US$123.81, down 36% from the 52-week high of US$192.67, with the new capex cycle still ahead.