Alibaba vs Rakuten: Revenue, Profit and Business Model
Alibaba had ~$142.3B of annual revenue in FY2026 and ~$14.4B of net income. Rakuten had ~$16.7B of annual revenue in FY2025 and a net loss of ~$1.2B.
Latest financial snapshot
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.
Rakuten
Rakuten's results for most of the 2020s were shaped by one decision: building Japan's fourth mobile network from 2018 onward. Net losses reached ~$2.5 billion (¥372.9 billion) in FY2022 and ~$2.27 billion (¥339.5 billion) in FY2023 while revenue kept growing. Losses narrowed to ~$1.09 billion (¥162.4 billion) in FY2024 and about $1.19 billion (¥177.9 billion) in FY2025 on revenue of ~$16.8 billion (¥2.50 trillion). The turn came in Q2 2026: revenue of ~$4.46 billion (¥665.5 billion) (+11.6%), EBITDA of ~$773 million (¥115.3 billion) and net income of ~$182 million (¥27.2 billion), the first quarterly profit since Q2 2020, with management targeting a full-year profit for 2026. Rakuten Group, Inc. is a massive Japanese electronic commerce and online retailing company, operating a highly diverse global ecosystem with a market valuation generally exceeding $10 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 |
Rakuten
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$16.7B | ~-$1.2B | -7.1% | +9.5% | Source |
| FY2024 | ~$15.3B | ~-$1.1B | -7.1% | +10.0% | Source |
| FY2023 | ~$13.9B | ~-$2.3B | -16.4% | +7.4% | Source |
| FY2022 | ~$12.9B | ~-$2.5B | -19.3% | +14.6% | Source |
| FY2021 | ~$11.3B | ~-$896.6M | -8.0% | — | 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.
Rakuten
- Internet Services (Rakuten Ichiba, Travel, Rewards)Segment
Merchant fees and commissions, advertising, travel bookings and affiliate cash-back commissions.
- FinTech (Rakuten Card, Bank, Securities, Payment)
Segment (~$1.98B (¥295.4B) revenue in Q2 2026)
Card interchange and revolving interest, deposit spreads, brokerage commissions and payment fees.
- Mobile (Rakuten Mobile, Rakuten Symphony)Segment
Monthly mobile subscriptions and Open RAN telecom software and services sold to other operators.
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.
Rakuten
How it makes money
Rakuten makes money from three segments tied together by one Rakuten ID and Rakuten Points. Internet Services (Rakuten Ichiba, Rakuten Travel, Rakuten Rewards, Kobo) earns merchant fees, commissions and advertising, since Ichiba is a marketplace where independent shops run their own storefronts rather than a first-party retailer.
Growth strategy
Rakuten's growth strategy rests on three moves: push Rakuten Mobile toward sustained profitability by adding subscribers who also use other Rakuten services; deepen FinTech by consolidating card, bank and securities under Rakuten Bank to cut funding costs and cross-sell deposits in a rising-rate Japan; and apply AI across Ichiba search, recommendations and merchant tools to lift gross merchandise sales.
Competitive advantage
Rakuten's main edge is cross-use. A single Rakuten ID links shopping, card, bank, brokerage and mobile accounts, and the SPU program raises point rewards for customers who use several services. That base is large: Rakuten Bank had 18.46 million accounts and Rakuten Securities 14.39 million accounts in Q2 2026, and Rakuten Card shopping volume reached ~$186 billion (¥27.7 trillion) over the trailing twelve months.
Questions about Alibaba vs Rakuten
Which company has higher revenue — Alibaba Group Holding Limited or Rakuten?
Alibaba Group Holding Limited had ~$142.3B (FY2026), while Rakuten had ~$16.7B (FY2025). By latest annual revenue, Alibaba Group Holding Limited is the larger business, with Rakuten 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 Rakuten?
Alibaba Group Holding Limited's market capitalisation stands at $266.6B, while Rakuten's is $9.8B. Alibaba Group Holding Limited carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Rakuten.
How does revenue per employee compare for Alibaba Group Holding Limited and Rakuten?
Alibaba Group Holding Limited has $1.08M / employee in revenue per employee, while Rakuten has $507k / 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 Rakuten make money?
Alibaba Group Holding Limited and Rakuten 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. Rakuten: Rakuten makes money from three segments tied together by one Rakuten ID and Rakuten Points.
Which company is valued higher relative to revenue — Alibaba Group Holding Limited or Rakuten?
On a price-to-sales (P/S) basis, Alibaba Group Holding Limited trades at 1.9x P/S and Rakuten at 0.6x P/S. Alibaba Group Holding Limited commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Rakuten. 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 Rakuten?
By last reported revenue, Alibaba Group Holding Limited (~$142.3B (FY2026)) is the larger company compared to Rakuten (~$16.7B (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 Rakuten overview