Xiaomi reported H1 2026 revenue of $28.9 billion, down 8.4% YoY, with adjusted net profit falling 42.8% to $1.7 billion. Q2 still beat analysts’ expectations ($15.1 billion revenue; $790 million profit).
Management said memory price inflation hurt smartphones: Q2 phone revenue fell 7.5%, but Xiaomi maintained an 8.5% gross margin. The company expects improvement once memory prices normalize, though costs remain elevated.
AI investment continues: Xiaomi spent $2.5 billion on R&D, with AI accounting for nearly 30%. Its AI model Mimo is still focused on powering HyperOS, smart devices and future autonomous driving rather than direct monetization.
EVs remain a growth focus, but Xiaomi may miss its 550,000 vehicle annual delivery target. Monthly deliveries are targeting 35,000 units, while overseas EV expansion is planned for H2 2027, initially focused on Europe.