Stock Markets March 31, 2026

Huawei records modest 2.2% revenue rise in 2025 as cloud lags and auto unit expands

Annual sales reach 880.9 billion yuan with heavy R&D spending as company flags an uncertain outlook

By Avery Klein
Huawei records modest 2.2% revenue rise in 2025 as cloud lags and auto unit expands

Huawei posted 2025 revenue of 880.9 billion yuan, a 2.2% increase year-on-year, marking a significant slowdown from the prior year's 22.4% growth. Growth was driven by modest gains in consumer devices and ICT infrastructure, while cloud revenue fell and the intelligent automotive unit posted a large jump. The company boosted R&D spending to 192.3 billion yuan, equal to 22% of annual revenue.

Key Points

  • Huawei's total 2025 sales were 880.9 billion yuan, up 2.2% year-on-year, the second-highest annual revenue after 2020.
  • Consumer devices revenue increased 1.6% to 344.5 billion yuan; ICT infrastructure revenue rose 2.6% to 375 billion yuan; cloud computing revenue fell 3.5%.
  • Intelligent automotive solutions revenue jumped 72.1% to 45 billion yuan; R&D spending rose to 192.3 billion yuan, 22% of annual revenue.

Overview

Huawei Technologies reported annual revenue of 880.9 billion yuan for 2025, an increase of 2.2% compared with the previous year. The Shenzhen-based group said this outcome represents its second-highest annual sales total, behind the record 891 billion yuan achieved in 2020.

Segment performance

The company described mixed results across its primary businesses. Revenue from its consumer unit - which includes smartphones and other digital devices - rose 1.6% to 344.5 billion yuan. Its information and communication technology (ICT) infrastructure division, the largest contributor to sales, recorded 2.6% growth, delivering 375 billion yuan in revenue.

Not all divisions expanded. Huawei's cloud computing operation reported a decline in revenue of 3.5% in 2025. In contrast, the intelligent automotive solutions unit, which supports traditional automakers in developing smart vehicles, posted a substantial increase - revenue there surged 72.1% to 45 billion yuan.

Investment and R&D

To address ongoing external constraints, Huawei continued to prioritize research and development. The company increased R&D expenditure to 192.3 billion yuan in 2025, equivalent to 22% of its annual revenue. Huawei said this spending focused on software, chips and manufacturing tools aimed at reducing dependence on restricted foreign technologies.

Context and outlook comment

Huawei noted that 2025 growth represents a marked slowdown from the 22.4% expansion recorded in 2024. The company also recalled the steep downturn experienced earlier in the decade when U.S. sanctions limited access to advanced chips and the Google Android ecosystem; that period contributed to a 29% drop in total revenue in 2021. The firm has since reported four consecutive years of revenue growth following that trough.

In a statement, chairwoman Meng Wanzhou said the company is navigating a future "full of uncertainty" and reiterated Huawei's commitment to nurturing its developer ecosystem.

Exchange rate

The company provided the U.S. dollar conversion using an exchange rate of $1 = 6.9058 Chinese yuan renminbi.


Key takeaways

  • Huawei's 2025 revenue rose 2.2% to 880.9 billion yuan, the firm's second-highest annual sales figure.
  • Consumer devices and ICT infrastructure delivered modest gains, while the cloud unit posted a revenue decline and the intelligent automotive unit grew sharply.
  • R&D investment was substantial at 192.3 billion yuan, equal to 22% of revenue, with a focus on software, chips and manufacturing tools.

Impacted sectors

  • Technology hardware and consumer electronics - reflected in the consumer unit and smartphone performance.
  • Telecommunications infrastructure - driven by ICT infrastructure results.
  • Automotive technology - highlighted by the intelligent automotive solutions unit's large revenue increase.

Risks

  • Continued uncertainty related to external constraints - the company described the future as "full of uncertainty," which could affect investment and strategy decisions (impacts technology and supply chain sectors).
  • Declining cloud revenue - a 3.5% drop in the cloud unit may weigh on Huawei's push into higher-margin cloud services (impacts cloud computing and enterprise services sectors).
  • Dependence on heavy R&D spend - while intended to reduce reliance on restricted technologies, elevated R&D intensity (22% of revenue) represents a significant ongoing cost burden (impacts capital allocation across technology and manufacturing).

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