Huawei H1 Profit Drop Quickens to 36% on Rising Costs, R&D Spending
Huawei said research and development spending rose 25% to 121.4 billion yuan, equal to more than a quarter of revenue, as profit fell 36%.
- On Monday, Huawei Technologies reported a 36% decline in first-half net profit to 23.8 billion yuan, as soaring input costs and heavy research and development spending outweighed revenue growth.
- Heavier research and development spending jumped 25% to 121.4 billion yuan, accounting for over 25% of total revenue as Huawei prioritizes long-term technological independence over short-term earnings.
- Revenue rose 9.55% to 467.8 billion yuan, bolstered by rebounding smartphone shipments and demand for AI-focused processors, though net operating cash flow swung to a negative 39.9 billion yuan.
- Huawei continues recovering from sanctions, though management warned full-year outlooks remain under review due to external uncertainty, rising component costs, and shifts in the company's business mix.
- This year, Huawei promoted AI-focused products and computing hardware, building on 2025 revenue of 880.9 billion yuan as the firm invests in domestic alternatives to overcome export controls.
12 Articles
12 Articles
Huawei recorded a 36% decrease in net profit during the first half of 2026, with the sharp increase in input costs and the heaviest investments with research and development surpassing revenue growth. The Chinese technology company reported that the profit from January to June fell to 23.8 billion yuan (US$3.54 billion), while revenue rose to 9.6%, reaching 467.8 billion yuan (US$69.5 billion), while the company continues to recover from US sanc…
Huawei H1 profit drop quickens to 36% on rising costs, R&D spending
By Eduardo Baptista BEIJING, Aug 31 (Reuters) - China's Huawei Technologies reported a 36% plunge in first-half net profit on Monday as soaring input costs and heavier spending on research and development outweighed revenue growth. The Chinese technol...
Huawei ploughs 25% of revenue into research, as R&D spending hits US$18 billion
Huawei Technologies poured more than a quarter of its first-half revenue into research and development, prioritising long-term technological independence over short-term earnings as first-half profit plunged 36 per cent. R&D expenses jumped 25 per cent year on year to 121.4 billion yuan (US$18 billion) for the six months through June, accounting for over 25 per cent of total revenue, according to a filing on Monday with the Shanghai Clearing Hou…
Huawei's Profit Fell 36% in H1 2026 as Memory Chip Prices Surged
Huawei's first-half 2026 net profit fell 36% to 23.81 billion yuan ($3.54 billion) even as revenue grew 9.6%, as surging memory chip prices squeezed its smartphone business and R&D spending hit 25.9% of revenue. The results show the AI-driven memory shortage now carries real earnings consequences, not just higher retail prices.
Rising memory chip prices have also affected profitability in the business division, which includes smartphones.
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