Stock Markets April 1, 2026

Huawei posts modest 2.2% revenue rise as cloud slips and automotive soars

Shenzhen group records near-record sales as R&D spending climbs to 22% of revenue amid continued sanctions

By Leila Farooq
Huawei posts modest 2.2% revenue rise as cloud slips and automotive soars

Huawei reported 2025 sales of 880.9 billion yuan, a 2.2% increase from the prior year and its second-highest annual revenue on record. Growth was driven by modest gains in consumer devices and information and communication technology infrastructure, while cloud revenue declined and intelligent automotive solutions posted a large jump. The company sharply increased research and development investment to reduce reliance on restricted foreign technologies.

Key Points

  • Huawei’s 2025 sales were 880.9 billion yuan, a 2.2% increase from 2024, representing its second-highest annual revenue after 2020.
  • Consumer devices and ICT infrastructure recorded small gains while cloud revenue declined; intelligent automotive solutions grew 72.1% to 45 billion yuan.
  • R&D investment rose to 192.3 billion yuan, equal to 22% of revenue, focused on software, chips and manufacturing tools to reduce reliance on restricted U.S. technology.

Huawei Technologies said its 2025 sales rose 2.2% to 880.9 billion yuan, marking the Shenzhen-based group's second-largest annual revenue haul. The gain represents a clear deceleration from the 22.4% growth reported in 2024, with the 2025 total falling short of the company's 2020 record of 891 billion yuan.

The company reported mixed results across its business units. Revenue from the consumer division, which encompasses smartphones and other digital devices, edged up 1.6% to 344.5 billion yuan. Its information and communication technology (ICT) infrastructure segment - the single largest contributor to Huawei's sales - rose 2.6% to 375 billion yuan.

By contrast, Huawei's cloud computing arm posted a decline in sales, falling 3.5% over the year. The intelligent automotive solutions unit, a smaller but rapidly expanding business that supports traditional automakers in building smart vehicles, posted a substantial 72.1% increase in revenue, reaching 45 billion yuan.

Huawei also highlighted adoption of its internally developed operating system, reporting that more than 36 million devices were running HarmonyOS by the end of last year.

Those operating results arrive against the backdrop of the company's longer-term challenges in its smartphone business. Huawei's handset operations suffered a severe contraction after U.S. sanctions limited access to advanced chips and to the Google Android operating system, contributing to a 29% fall in total revenue in 2021. Last year marked the fourth consecutive year of growth since that downturn.

The company said it continued to allocate substantial resources to research and development as part of a strategy to reduce dependence on technologies restricted by U.S. measures. R&D outlays rose to 192.3 billion yuan in 2025, equal to 22% of the company's annual revenue, with investments focused on software, chips and manufacturing tools.

In a corporate statement, chairwoman Meng Wanzhou said the company is navigating a future "full of uncertainty," and pledged that Huawei would continue cultivating its developer ecosystem.


Segment details:

  • Total 2025 sales: 880.9 billion yuan, up 2.2% year-on-year.
  • Consumer unit revenue: 344.5 billion yuan, up 1.6%.
  • ICT infrastructure revenue: 375 billion yuan, up 2.6%.
  • Cloud computing revenue: down 3.5%.
  • Intelligent automotive solutions revenue: 45 billion yuan, up 72.1%.
  • R&D spending: 192.3 billion yuan, 22% of revenue.
  • HarmonyOS devices: over 36 million by year-end.

The company did not provide additional financial guidance in its statement. The reported figures reflect an operating landscape in which modest expansion in core hardware and infrastructure sales coexists with pressure in cloud services and targeted, rapid growth in automotive-related technology offerings.

Risks

  • Ongoing uncertainty related to external technology restrictions, which the company cited as a factor in elevated R&D spending and strategic shifts - this affects the technology and semiconductor supply chain sectors.
  • Declining cloud computing revenue introduces volatility in Huawei’s services segment, with potential implications for enterprise IT and cloud markets.
  • Historical smartphone disruption following U.S. sanctions highlights exposure in the consumer electronics sector to geopolitical and supply-chain constraints.

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