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 the 23rd consecutive quarter, with a record-high ASP of RMB 1,310 and a market share of 11.3%.

• Smart EV segment delivered 80,856 vehicles, up 6.6% YoY, with expanded sales network and new model launches.

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

• AI and smart EV initiatives advanced with new product launches, global recognition, and strong adoption of AI token plans.

Financial highlights

• Q1 2026 total revenue: RMB 99.1 billion; 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%.

• Smartphone revenue: RMB 44.3 billion, shipments 33.8 million units, ASP RMB 1,310 (up 8.2% YoY), gross margin 10.1%.

• IoT and lifestyle products revenue: RMB 24.7 billion, gross margin 25.2%, with overseas growth offsetting domestic declines.

• Internet services revenue: RMB 9.5 billion (up 4.3% YoY), gross margin 76.1%.

• Smart EV, AI, and new initiatives revenue: RMB 19.9 billion (up 6.9% YoY), gross margin 20.1%.

Outlook and guidance

• Management expects continued pressure from rising memory costs, with a long cycle anticipated through 2027–2028.

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

• AIoT business positioned as a key balancer against memory cost increases, with significant overseas growth potential.

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

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