Huawei Reports 36% Drop in First-Half Net Profit Amid Rising Costs and R&D Spending
Chinese technology company Huawei reported a significant decline of 36% in its first-half net profit for the period January to June, falling to 23.81 billion yuan ($3.54 billion). The drop accelerated from a previous year-on-year decrease of 32%, despite revenue rising by 9.6% to 467.82 billion yuan. Huawei attributed this decline primarily to soaring input costs and increased investment in research and development (R&D), which rose 25% to 121.38 billion yuan, or 25.9% of total revenue. The company is working hard to reduce its reliance on foreign technology following years of U.S. export restrictions, particularly affecting memory chip prices and impacting the profitability of its consumer business segment, including smartphones. Huawei stated that all businesses recorded year-on-year revenue growth in H1 2026 but noted external uncertainties are still under review for their full-year outlook.
