Alibaba Group Holding Ltd. posted its fastest pace of revenue growth in more than a year, reflecting a turnaround in its commerce business and big strides into the critical field of AI.

The e-commerce company posted a better-than-expected 7.6% rise in revenue as it worked to put growth back on track amid fierce domestic competition and a slowing Chinese economy.

China's Alibaba Group Holding on Thursday topped Wall Street expectations for third-quarter revenue, on strong year-end shopping sales and the success of its strategy to attract cost-conscious consumers.