BEIJING — Chinese technology companies Alibaba, JD.com, and Tencent reported stronger-than-expected earnings for the first quarter of 2025, attributing part of the growth to increased use of artificial intelligence in advertising.
Alibaba’s e-commerce platforms Taobao and Tmall exceeded analyst forecasts, with group sales rising 9% year-over-year to 101.37 billion yuan ($13.97 billion). The company’s AI-based advertising tool, Quanzhantui, contributed to a 12% increase in marketing revenue, which reached nearly $10 billion.
JD.com posted a 16.3% rise in retail revenue to 263.85 billion yuan, with marketing revenue up 15.7% year-over-year. The company said AI models are helping merchants design and manage more complex advertising campaigns.
Tencent’s fintech and business services revenue rose 5% to 54.9 billion yuan, while advertising revenue increased 20% to 31.9 billion yuan. The company cited AI enhancements for improved advertising performance, particularly on WeChat, where click-through rates increased from 0.1% to nearly 3%, according to internal data.
Analysts say AI tools are improving targeting and advertising efficiency. However, some note that measuring the long-term value of AI-driven ad performance remains a challenge.
WeChat reached a monthly user base of 1.4 billion during the quarter. Tencent also announced that its e-commerce division would become a standalone business unit within the platform.
The reported earnings reflect financial performance prior to the escalation of U.S.-China trade tensions in April. Despite a joint statement from both governments outlining a 90-day suspension of new tariffs, economists note that uncertainty among small and mid-sized businesses has weighed on consumer sentiment.
A Morgan Stanley survey found that consumer confidence dropped to its lowest point in two and a half years. About 44% of respondents expressed concern about job losses— the highest level since the survey began in 2020.
Chinese policymakers have indicated plans to stimulate domestic spending by targeting key sectors such as food, caregiving, tourism, and durable goods. These measures are aimed at supporting consumer demand and helping the economy meet its 5% annual growth target.
Analysts also project modest gains for the upcoming June 18 shopping festival, one of China’s largest online retail events, with forecasts pointing to low double-digit sales growth.
