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.
In the first half of 2026, Chinese tech giant Huawei experienced a significant decline in net profit, dropping 36% compared to the same period in 2025. The company reported a net profit of 23.8 billion yuan ($3.54 billion), down from 37.2 billion yuan in the same period a year earlier. However, Huawei's revenue increased by 9.5% year-on-year to reach 467.8 billion yuan.
A substantial portion of this revenue, approximately a quarter, was allocated towards research and development (R&D) as the company continues to invest in AI-related products. R&D expenses surged to 121 billion yuan in the first half of 2026, up from 97 billion yuan during the comparable period in 2025.
Huawei's spokesperson emphasized that the company remains focused on its strategic goals and is committed to refining its competitive advantage. Despite this, the company faces challenges such as external uncertainties and the rising costs of raw materials. The decline in net profit is attributed to increased investments in future-oriented research and innovation in artificial intelligence.
Huawei's struggle to obtain advanced semiconductor manufacturing equipment due to US sanctions since 2019 is a critical factor in its AI ambitions. In May, the company revealed a new method of making semiconductors to bypass these restrictions, highlighting the significance of cutting-edge chips in the ongoing technology rivalry between the US and China.
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.
