China’s Huawei sees first-half net profit drop 36%
The company's net profit from January to June was 23.8 billion yuan (US$3.54 billion), down from 37.2 billion yuan during the same period in 2025.
Chinese tech giant Huawei reported a 36% drop in net profit for the first half of the year, despite a 9.5% rise in revenue. The company's net profit from January to June was 23.8 billion yuan, down from 37.2 billion yuan in the same period last year. This decrease was attributed to AI-related research and rising costs. Huawei spent a quarter of its revenue on research and development, with expenses reaching 121 billion yuan in the first half of 2026, up from 97 billion yuan in the same period a year earlier.
The company's spokesperson stated that they have maintained strategic focus and continue to hone their competitive edge. However, they also face challenges such as external uncertainty and rising raw material costs. Huawei's decline in net profit is partly due to increased investments in future-oriented basic research and innovation in AI.
The company developed a new semiconductor-making method to overcome its lack of access to advanced chipmaking equipment due to US sanctions since 2019.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
