Alibaba (BABA) Faces AI Leadership Shakeup Ahead of Earnings. Can Qwen's Growth Drive the Stock?

Alibaba (BABA) is preparing to report earnings next week on March 19 as investors closely watch its push into artificial intelligence. The company is trying to move beyond its traditional e-commerce business and find new growth through AI.

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However, its efforts have recently faced some leadership challenges. Alibaba saw the departure of Lin Junyang, the technical lead widely seen as the face of its Qwen AI model. His exit, along with a few other senior Qwen leaders leaving this year, has raised questions about the stability of Alibaba’s AI division.

Alibaba Responds to Leadership Changes

To show that AI remains a top priority, CEO Eddie Wu has stepped in directly. He has created a new “Foundation Model Task Force,” which includes the Group CTO and the Cloud CTO. By taking a more direct role, Alibaba is signaling that its AI strategy remains a key focus for the company.

At the same time, Alibaba has rejected reports of a wider talent exodus. The company recently hired Zhou Hao, a former Google DeepMind scientist, to lead research on improving its AI models.

Qwen Is Seeing Rapid Adoption

Despite the leadership shakeup, the numbers show that Qwen is gaining traction with users. The Qwen mobile app saw a sharp jump in users—from 31 million in January to about 203 million in February.

The company is also adding AI tools to major services such as Taobao and Alipay, which could help expand adoption across its ecosystem.

What Lies Ahead for Alibaba

All eyes are now on March 19, 2026, when Alibaba will report its fiscal third-quarter 2026 financial results. Wall Street analysts expect earnings of $1.72 per share, down from $3.09 in the year-ago quarter. Revenue is projected at about $41.96 billion, representing an 8% year-over-year increase.

During the earnings call, investors will look for signs that this surge in AI usage is translating into revenue. If Alibaba shows that its cloud and AI investments are starting to pay off, it could give the stock a much-needed boost

Is Alibaba Stock a Buy Now?

Wall Street remains constructive on the stock. Alibaba carries a Strong Buy consensus rating, based on eight Buy ratings and one Hold over the past three months. The average BABA price target stands at $197.86, suggesting roughly 44.58% upside from current levels.