Alibaba vs MercadoLibre: Revenue, Profit and Business Model
Alibaba had ~$142.3B of annual revenue in FY2026 and ~$14.4B of net income. MercadoLibre had $28.9B of annual revenue in FY2025 and $2B of net income.
Latest financial snapshot
Alibaba
- Latest annual revenue
- ~$142.3B (FY2026)
- Net income
- ~$14.4B
- Net margin
- 10.1%
- Revenue growth
- +23.1% a year, FY2017–FY2026
MercadoLibre
- Latest annual revenue
- $28.9B (FY2025)
- Net income
- $2B
- Net margin
- 6.9%
- Revenue growth
- +48.1% a year, FY2016–FY2025
Financial summary
Alibaba
Revenue rose from ~$22 billion (RMB158.3 billion) in FY2017 to ~$142 billion (RMB1.024 trillion) in FY2026. Net income was ~$14.4 billion (RMB103.6 billion) in FY2026, down from ~$17.5 billion (RMB126.0 billion) in FY2025. Alibaba reports on a March 31 fiscal year and invests heavily in commerce, cloud and AI infrastructure. Alibaba Group is a Chinese multinational technology titan with a market valuation typically hovering around $200 billion.
MercadoLibre
Revenue has compounded quickly: $10.8 billion in 2022, $15.1 billion in 2023, $20.8 billion in 2024 and $28.9 billion in 2025. Net income rose from $482 million in 2022 to about $2.0 billion in 2025, and 2025 operating cash flow was about $12.1 billion, boosted by fintech balances. Margins are now under pressure. In Q2 2026, revenue grew 50% to $10.2 billion, but operating income was $683 million (a 6.7% margin) and net income fell 11% to $466 million, or $9.19 per share. The drivers were credit-card expansion, free-shipping subsidies and first-party retail investment. MercadoLibre, Inc. is the absolute largest e-commerce and payments ecosystem in Latin America, commanding a monumental market valuation generally exceeding $80 billion.
Revenue and profit by year
Alibaba
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$142.3B | ~$14.4B | 10.1% | +2.7% | Source |
| FY2025 | ~$138.5B | ~$17.5B | 12.6% | +5.9% | Source |
| FY2024 | ~$130.8B | ~$9.9B | 7.6% | +8.3% | Source |
| FY2023 | ~$120.7B | ~$9.1B | 7.5% | +1.8% | Source |
| FY2022 | ~$118.6B | ~$6.5B | 5.5% | +18.9% | Source |
| FY2021 | ~$99.7B | ~$19.9B | 20.0% | +40.7% | Source |
| FY2020 | ~$70.8B | ~$19.5B | 27.5% | +35.3% | Source |
| FY2019 | ~$52.4B | ~$11.2B | 21.3% | +50.6% | Source |
| FY2018 | ~$34.8B | ~$8.5B | 24.5% | +58.1% | Source |
| FY2017 | ~$22B | ~$6.1B | 27.6% | — | Source |
MercadoLibre
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $28.9B | $2B | 6.9% | +39.1% | Source |
| FY2024 | $20.8B | $1.9B | 9.2% | +37.5% | Source |
| FY2023 | $15.1B | $987M | 6.5% | +40.1% | Source |
| FY2022 | $10.8B | $482M | 4.5% | +52.5% | Source |
| FY2021 | $7.1B | $83M | 1.2% | +77.9% | Source |
| FY2020 | $4B | -$1M | -0.0% | +73.1% | Source |
| FY2019 | $2.3B | -$172M | -7.5% | +59.5% | Source |
| FY2018 | $1.4B | -$36.6M | -2.5% | +18.3% | Source |
| FY2017 | $1.2B | $13.8M | 1.1% | +44.1% | Source |
| FY2016 | $844.4M | $136.4M | 16.1% | — | Source |
Where the revenue comes from
Alibaba
- China commerce
Not formally reported
Alibaba earns revenue through China commerce.
- international digital commerce
Not formally reported
Alibaba earns revenue through international digital commerce.
- cloud intelligence
Not formally reported
Alibaba earns revenue through cloud intelligence.
- logistics services
Not formally reported
Alibaba earns revenue through logistics services.
- local services and digital media
Not formally reported
Alibaba earns revenue through local services and digital media.
MercadoLibre
- Commerce (Mercado Libre)
Not formally reported
Seller commissions on marketplace sales, shipping and fulfillment fees through Mercado Envios, advertising through Mercado Ads, and some first-party retail.
- Fintech (Mercado Pago)
Not formally reported
Merchant fees on online and in-store payments, plus interest on consumer loans, merchant loans and credit cards. Assets under management reached $23 billion in Q2 2026.
Business model and strategy
Alibaba
How it makes money
Alibaba earns revenue from customer-management services and commissions on its China commerce marketplaces, direct sales and logistics services in international commerce, cloud products and services, Cainiao logistics, local services, and digital media. Taobao and Tmall primarily connect merchants with consumers rather than operating only as first-party retailers.
Growth strategy
Facing intense regulatory scrutiny and fierce domestic competition, Alibaba's growth strategy recently underwent a large structural overhaul. They announced a plan to split the empire into six separate, independent business groups (like Cloud, E-commerce, and Logistics), allowing each to operate faster and potentially seek their own IPOs.
Competitive advantage
Alibaba's primary moat was its large network effect within China; virtually every merchant had to be on Taobao because that's where all the consumers were, and vice versa. their proprietary logistics network (Cainiao) and deep integration with Alipay created a frictionless ecosystem for Chinese consumers.
MercadoLibre
How it makes money
MercadoLibre makes money in two ways. Commerce (Mercado Libre) charges sellers commissions on marketplace sales, collects shipping and fulfillment fees through Mercado Envios, sells advertising through Mercado Ads, and runs some first-party retail.
Growth strategy
Growth is coming from three places. First, buyer frequency: unique active buyers rose 26% to 89.3 million in Q2 2026 after Brazil's free-shipping threshold was lowered. Second, fintech depth: Mercado Pago monthly active users grew 30% to 88 million, quarterly payment volume topped $100 billion, and the credit book reached $16.4 billion. Third, higher-margin add-ons such as Mercado Ads and the Meli+ subscription.
Competitive advantage
MercadoLibre's main edge is that commerce, payments, credit and logistics all sit inside one company. It runs its own fulfillment centers, delivery fleet and Meli Air cargo flights, so it controls delivery speed in markets where postal services are unreliable.
Questions about Alibaba vs MercadoLibre
Which company has higher revenue — Alibaba Group Holding Limited or MercadoLibre, Inc.?
Alibaba Group Holding Limited had ~$142.3B (FY2026), while MercadoLibre, Inc. had $28.9B (FY2025). By latest annual revenue, Alibaba Group Holding Limited is the larger business, with MercadoLibre, Inc. showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Alibaba Group Holding Limited vs MercadoLibre, Inc.?
Alibaba Group Holding Limited's market capitalisation stands at $266.6B, while MercadoLibre, Inc.'s is $89.0B. Alibaba Group Holding Limited carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to MercadoLibre, Inc..
How does revenue per employee compare for Alibaba Group Holding Limited and MercadoLibre, Inc.?
Alibaba Group Holding Limited has $1.08M / employee in revenue per employee, while MercadoLibre, Inc. has $234k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Alibaba Group Holding Limited and MercadoLibre, Inc. make money?
Alibaba Group Holding Limited and MercadoLibre, Inc. generate revenue in fundamentally different ways. Alibaba Group Holding Limited: Alibaba earns revenue from customer-management services and commissions on its China commerce marketplaces, direct sales and logistics services in international commerce, cloud products and services, Cainiao logistics, local services, and digital media. MercadoLibre, Inc.: MercadoLibre makes money in two ways.
Which company is valued higher relative to revenue — Alibaba Group Holding Limited or MercadoLibre, Inc.?
On a price-to-sales (P/S) basis, Alibaba Group Holding Limited trades at 1.9x P/S and MercadoLibre, Inc. at 3.1x P/S. MercadoLibre, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Alibaba Group Holding Limited. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Alibaba Group Holding Limited bigger than MercadoLibre, Inc.?
By last reported revenue, Alibaba Group Holding Limited (~$142.3B (FY2026)) is the larger company compared to MercadoLibre, Inc. ($28.9B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Alibaba vs MercadoLibre overview