Xiaomi Corporation Q2 2026 Earnings Recap

Xiaomi’s shares rose 6.0% following Q2 2026 results, driven by better-than-expected smartphone ASP and encouraging momentum in AI and automotive segments despite ongoing margin pressure from high memory costs.

Key Takeaways

• Q2 revenue reached RMB 108.9 billion with adjusted net profit of RMB 6.2 billion.
• Smartphone shipments declined but ASP hit a record high due to product mix upgrades and price increases; smartphone gross margin compressed to 8.5% in Q2 (9.3% H1).
• IoT revenue declined year-on-year due to a high base effect from past subsidies, but overseas channel expansion drove significant international growth.
• Xiaomi EV deliveries continued growth with 104,199 units in Q2 and cumulative SU7 sales surpassing 500,000; new extended range vehicle architecture and SkyNomad SUVs launching soon.
• Strong traction in AI foundational models (MiMo-V2.5), with rapid growth in usage and initial revenue contributions from API calls and token plans.