Xiaomi Logs Lower H1 2026 Earnings as Smartphones Weaken, EV and AI Drive Mixed Results

Xiaomi Corporation (stock name: XIAOMI-WR) posted revenue of RMB 208.06 billion for the six months ended 30 June 2026, an 8.4% year-on-year decline. Net profit attributable to shareholders dropped 37.6% to RMB 14.20 billion, while adjusted net profit fell 42.8% to RMB 12.29 billion. Gross margin slipped to 20.9% from 22.7% a year earlier.

Smartphone × AIoT remained the core business, generating revenue of RMB 163.30 billion, down 12.9%. Smartphone sales contracted 10.1% to RMB 86.39 billion as unit shipments slid 22.9% to 65.00 million, but average selling price rose 16.5% to RMB 1,330, reflecting a continued push into premium devices. IoT and lifestyle products revenue dropped 21.2% to RMB 55.96 billion, while Internet services inched up 1.9% to RMB 18.51 billion. Segment gross margin narrowed to 21.2% (1H 2025: 22.2%).

The Smart EV, AI and other new initiatives segment delivered revenue of RMB 44.76 billion, up 12.3%. Smart EV sales contributed RMB 42.90 billion as deliveries climbed 17.7% to 185,055 vehicles. Segment gross margin declined to 19.6% from 24.9% a year earlier, and the unit posted an operating loss of RMB 5.70 billion.

Group research and development spending rose 25.6% to RMB 18.19 billion, representing 8.7% of total revenue. Capital expenditure reached RMB 6.89 billion, with RMB 3.88 billion allocated to the Smart EV, AI and other new initiatives segment.

Xiaomi closed June with cash and cash equivalents of RMB 37.25 billion and total cash resources of RMB 219.30 billion. The gearing ratio stood at –31.5%, indicating a net cash position. Total borrowings were RMB 39.28 billion.

During the first half, Xiaomi repurchased approximately 377.50 million shares for about HK$11.70 billion under a HK$20 billion buy-back program announced in May 2026. No interim dividend was declared.

Chairman Lei Jun cited higher component costs, geopolitical uncertainties and industry competition as key headwinds, while highlighting ongoing investment in AI capabilities, large-model development and the Xiaomi HyperOS ecosystem. The company maintained its position as the world’s No. 3 smartphone shipper in 1H 2026, and ranked No. 232 on the Fortune Global 500 list, up 65 places year on year.