The following is the summary of Xiaomi Corporation’s financial results for the fourth quarter and the full year ended December 31, 2025. All figures are in RMB.
Financial Overview for Q4 2025
- Revenue: 116.9B RMB.
- Adjusted Net Profit: 6.3B RMB.
- Smartphone × AIoT Segment Revenue: 79.7B RMB.
- Smart EV and Other Innovative Businesses Segment Revenue: 37.2B RMB (up 123.4% YoY).
- Smart EV Deliveries: 145,115 units (up 108.2% YoY).
- Smartphone Shipments: 37.7M units (ranked third globally, 11.1% market share).
Financial Overview for Full Year 2025
- Total Revenue: 457.3B RMB (up 25% YoY).
- Adjusted Net Profit: 39.2B RMB (up 43.8% YoY).
- Smartphone × AIoT Segment Revenue: 351.2B RMB (up 5.4% YoY).
- Smart EV and Other Innovative Businesses Segment Revenue: 106.1B RMB (up 223.8% YoY).
- Total Annual Smartphone Shipments: 165.2M units.
- Total Annual Smart EV Deliveries: 411,082 units (up 200.4% YoY).
Business Highlights
- Strong Performance in Smart EVs: In 2025, the Xiaomi SU7 series ranked first in sales among sedans priced above 200,000 RMB in mainland China.
- Gross Margin Performance: The gross margin for the Smartphone × AIoT segment reached a record high of 21.7%; the gross margin for the Smart EV and Other Innovative Businesses segment was 22.7%, an increase of 2.3 percentage points YoY.
Xiaomi Corporation (1810.HK) released its Q1 2026 financial report on May 26, 2026. The following is a summary of the key financial highlights and outlook:
Q1 2026 Key Changes
- Revenue and Profit: Total revenue for Q1 was 99.1B RMB, down 10.9% YoY; adjusted net profit was 6.1B RMB, down 43.1% YoY.
- Key Challenges: A significant surge in memory costs put pressure on the gross margin of the smartphone business, which stood at 10.1% for the first quarter, down 2.3 percentage points YoY.
- Smartphone Business: Driven by an active adjustment of the product mix (reduction of mid-to-low-end models), global smartphone shipments fell to 33.8M units (down 19.2% YoY). However, benefiting from the premiumization strategy, the average selling price (ASP) of smartphones reached a record high of 1,310 RMB (up 8.2% YoY).
- Innovative Businesses (EVs & AI): The automotive business demonstrated resilience with revenue of 19.9B RMB (up 6.9% YoY) and deliveries reaching 80,856 units.
Outlook for Next Quarter and Future Directions
- EV Business Expansion: The company expects to launch new vehicle models in the second half of this year and continues to expand its sales network. In terms of long-term planning, it expects to enter the European EV market in the second half of 2027 and the right-hand drive market in the first half of 2028.
- AI Commercialization: The focus is on strengthening foundational model capabilities and promoting the cross-device execution of MiClaw, enabling AI to empower the entire “Human, Car, Home” ecosystem. AI investment is expected to be at least 16B RMB this year.
- Cost Management: Management stated that it will seek a balance between price, scale, and profit through supply chain management and product mix optimization to offset the negative impact of rising memory costs.
One-Year EPS Reference
According to current market analyst forecasts, profit expectations for Xiaomi have been adjusted recently due to memory price volatility and market competition. The current market consensus for earnings per share (EPS) is subject to dynamic adjustments. Investors should monitor whether memory costs stabilize in the future and whether the optimization of the smartphone product mix can further support the recovery of gross margins.
(Note: All figures are in RMB. Investments involve risks; data and forecasts are for reference only.)
Current Price and Market Consensus (as of May 27, 2026)
- Current Price: Approximately 28.40 HKD.
- Market Rating: Most analysts maintain a Buy rating, though some institutions have recently lowered their target prices due to the Q1 financial performance and memory cost pressures.
- Analyst Target Price Range:
- Average Target Price: Approximately 43.09 to 50.24 HKD.
- Bull Case Target Price: Up to 75.00 HKD.
- Bear Case Target Price: Approximately 25.15 to 26.00 HKD.
Potential Upside and Downside
Based on the average analyst target price, the stock has an implied upside potential of approximately +48% to +75%. However, current market sentiment is cautious, and investors should monitor the following key factors:
Potential Upside Drivers (Bull Case)
- Gross Margin Recovery Potential: The market expects that as DRAM/NAND supply shortages ease between late 2026 and 2027, the profit margins for the smartphone business are expected to bottom out and rebound.
- Premiumization and AI Ecosystem: If the “Human, Car, Home” ecosystem (particularly the implementation of the MiClaw AI model) successfully boosts smartphone average selling prices (ASP) and generates subscription revenue, it could drive a valuation re-rating.
- EV Business Scaling: If the smart electric vehicle (EV) business reaches its delivery target of 550,000 units in 2026, and with the realization of economies of scale, narrowed losses could transform the automotive segment from a current drag on earnings into a core pillar supporting valuation.
Potential Downside Risks (Bear Case)
- Short-term Profit Pressure: Institutions such as Goldman Sachs and Jefferies have pointed out that due to losses in the smart EV business and rising memory costs, gross margins will remain under severe pressure in the short term. If losses exceed expectations, the share price may further test the support level of 25 to 26 HKD.
- Competitive Pressure: Intense competition from peers in the global and Chinese markets for smartphones, IoT, and EVs may force Xiaomi to engage in price wars, which would erode gross margins.
- Slowing Revenue Growth: Q1 2026 saw an uncharacteristic revenue decline of 10.9%. If this does not improve in subsequent quarters, it may weaken market support for its growth-stock valuation.
Investment Insight: Xiaomi is currently in a difficult transition period from a hardware manufacturer to an AIoT and EV ecosystem provider. The current share price reflects some of the market’s pessimistic expectations (approaching 52-week lows). For long-term investors, it is recommended to closely monitor the movement of memory costs in the second half of 2026 and the market sales performance of new vehicle models.
Disclaimer: The above information is based on market analysis and public financial reports as of May 2026 and does not constitute investment advice. Financial markets are highly volatile; please evaluate the risks yourself before making any investment decisions.
Source:
- https://ir.mi.com/static-files/640b163f-dacb-4612-a32d-45919fd84089
- https://www.webwire.com/ViewPressRel.asp?aId=355307
- https://news.futunn.com/en/post/73713496/xiaomi-group-1810-hk-q1-fy26-earnings-commentary-near-term
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