This article first appeared on GuruFocus.

Chinese e-commerce giant Alibaba (NYSE:BABA) is set to release its Q2 FY26 results on Tuesday. The stock has climbed more than 90% year-to-date, supported by strong e-commerce performance and rising demand for cloud and AI services.

In Q1 FY26, Alibaba reported revenue of 247.7 billion yuan ($34.6 billion), while cloud sales rose 26% to 33.4 billion yuan. Analysts expect Q2 earnings of $0.85 per share, down from $2.10 a year earlier, with revenue projected at $34.29 billion, a year-over-year increase of roughly 4%.

Warning! GuruFocus has detected 3 Warning Signs with BABA.

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Investors will be closely watching whether gains in cloud computing, AI, and emerging consumer-AI products can offset pressures in Alibaba's core e-commerce business, which faces soft consumer spending, discounting, and intense competition in China.

Based on the one year price targets offered by 39 analysts, the average target price for Alibaba Group Holding Ltd is $198.19 with a high estimate of $271.11 and a low estimate of $119.85. The average target implies a upside of +24.73% from the current price of $158.89.

Based on GuruFocus estimates, the estimated GF Value for Alibaba Group Holding Ltd in one year is $115.14, suggesting a downside of -27.53% from the current price of $158.89. gf value is gurufocus' estimate of the fair value that the stock should be traded at. it is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page.