Xiaomi (1810) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was RMB 99.1 billion, with a gross margin of 22.0% and adjusted net profit of RMB 6.1 billion, marking the first full quarter of a new five-year plan focused on ecosystem integration and innovation in AI, EVs, and large appliances.

• Smartphone shipments ranked top 3 globally for 23 consecutive quarters, with a record-high ASP of RMB 1,310, despite a 19.2% YoY decline in shipments.

• Smart EV segment delivered 80,856 vehicles, up 6.6% YoY, with cumulative SU7 deliveries reaching 232,000 units in 10 months and expanded sales network to 490 centers in 143 cities.

• Significant progress in AI, with MiMo-V2.5-Pro ranking first among global open source large models and new AIoT ecosystem launches.

• R&D expenses increased 33.4% YoY to RMB 9.0 billion, with over 26,000 R&D employees and 47,000+ patents granted.

Financial highlights

• Q1 2026 total revenue: RMB 99.1 billion; gross profit: RMB 21.8 billion; overall gross margin: 22.0%.

• Adjusted net profit: RMB 6.1 billion, margin: 6.1%.

• Smartphone × AIoT segment revenue: RMB 79.3 billion, gross margin: 22.5%.

• IoT and lifestyle products revenue: RMB 24.7 billion, gross margin: 25.2%, with overseas revenue achieving double-digit YoY growth.

• Smart EV, AI, and new initiatives revenue: RMB 19.9 billion, gross margin: 20.1%, operating loss: RMB 3.1 billion.

Outlook and guidance

• Confident in achieving full-year EV delivery targets, with new models expected to drive volume and ASP.

• Plans to enter the European EV market in H2 2027 and expand to right-hand drive regions in H1 2028.

• Continued investment in AI and foundational technology, with a flexible budget based on ROI and market opportunities.

• AIoT business expected to balance memory cost increases, with significant overseas growth potential.