Huawei reported a net profit of approximately 37 billion yuan in H1 2026, down 36% year-on-year, driven by massive research and development investments. R&D spending reached 96.9 billion yuan, representing 23% of revenue, one of the highest ratios in the global technology sector. Meanwhile, revenue grew 4% to 427 billion yuan, marking the company’s strongest first-half performance since 2020. Huawei notably strengthened its position in intelligent automotive solutions, up 72% in 2025, and shipped 26.6 million smartphones, with 95% of sales remaining domestic. The resulting margin compression suggests that cost pressures are intensifying rather than stabilizing.
Source: Read the original article
