Xiaomi (1810) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached RMB 113.1 billion, up 22.3% year-on-year, with adjusted net profit at RMB 11.3 billion, up 80.9% year-on-year, and net profit up 129.5% to RMB 12.3 billion.

• Gross profit margin reached 22.9%, up 2.5 percentage points year-on-year, a record high.

• Smart EV, AI, and new initiatives revenue surged 199.2% year-on-year to RMB 29.0 billion, with the segment posting its first quarterly operating profit.

• Global smartphone shipments reached 43.3 million units, up 0.5% year-on-year, maintaining a top 3 global ranking and 13.6% market share.

• All major business lines, including smartphones, IoT, and EVs, showed steady growth despite a challenging external environment.

Financial highlights

• Smartphone segment revenue was RMB 46 billion, accounting for 40.6% of total revenue; global shipments reached 43.3 million units, up 0.5% year-on-year, with ASP down 3.6%.

• IoT and lifestyle products revenue reached RMB 27.6 billion, up 5.6% year-on-year, with gross margin at 23.9%.

• Internet services revenue hit a record RMB 9.4 billion, up 10.8% year-on-year, with a gross margin of 76.9%.

• Smart EV sales revenue reached RMB 28.3 billion, up 197.9% year-on-year, with gross margin at 25.5%.

• R&D expenses for Q3 were RMB 9.1 billion, up 52.1% year-on-year; first three quarters totaled RMB 23.5 billion.

Outlook and guidance

• Premiumization strategy will continue, targeting 30 million premium smartphone units over five years.

• Next year’s EV delivery scale is projected to maintain steady growth, with ongoing expansion of sales and service networks.

• Overseas IoT revenue expected to rise further with intensified market expansion in 2026.

• R&D investments projected to surpass RMB 200 billion over the next five years.

• Ongoing investment in foundational technologies and global retail expansion.