Ant Group's quarterly profit drops by 79% year-on-year, experiencing a sharp decline for the second consecutive quarter

The cost of large-scale investment is clearly reflected in Ant Group's income statement.

According to Bloomberg's calculations based on Alibaba's financial report data, Ant Group's net profit for the fourth quarter of 2025 (as of December 31, 2025) was approximately 1.13 billion yuan, a year-on-year decrease of 79%. Alibaba holds about one-third of Ant's equity and recognized a profit contribution of 375 million yuan (about 55 million US dollars) from Ant in this quarter.

It should be noted that Ant's financial data is disclosed one quarter behind Alibaba's. These figures are from Alibaba's latest first quarter of 2026 financial report. In the previous quarter, Ant's profit had already decreased by 91% year-on-year, making the trend of significant profit contraction over two consecutive quarters a cause for concern.

Ant Group did not respond to requests for comment.

Investment in AI and Healthcare is the main reason

The core reason for the decline in profits is Ant's continued large-scale investment in AI technology, covering multiple directions such as healthcare, large language models, and payment services. About two years after the regulatory rectification was essentially completed, Ant is actively looking for new sources of revenue, having injected hundreds of millions of dollars into the digital healthcare field and constructing robots. Last year, Ant unveiled its first humanoid robot, which can provide medical advice and perform basic kitchen tasks. Its healthcare app, AQ, had served 140 million users as of September last year.

Loan business faces regulatory restrictions, with limited growth potential

Bloomberg Intelligence analyst Chen Zixuan estimates that Ant's online lending business may grow moderately under regulatory restrictions. Chongqing Ant Consumer Finance, a consumer finance subsidiary in which Ant holds a 50% stake, is estimated to have a maximum loan limit of approximately 620 billion yuan.

International business shines, IPO expectations continue to rise

Contrasting with the profitability pressure of domestic businesses, Ant's international business, headquartered in Singapore, is performing strongly. The division achieved revenues of $3 billion in 2024 and further increased by about 25% in 2025, paving the way for a potential independent IPO. Bloomberg previously estimated its valuation to be between $10 billion and $15 billion. The international business continues to expand in the cash management sector and is one of Ant's most growth-oriented segments currently.

Valuation falls from $280 billion to $79 billion

Ant's valuation trajectory reflects the dramatic ups and downs of the company's fortunes. In 2020, when Ant's IPO plans in Shanghai and Hong Kong were suspended, the valuation reached as high as $280 billion. In the 2023 share repurchase program, the company's valuation was about $79 billion, a contraction of over 70% from its peak. Today, under continued high investment and profit pressure, the path to rebuilding Ant's valuation is still full of uncertainties.