TLDR
- Xiaomi reported Q3 revenue of 113.1 billion yuan ($15.90 billion), up 22.3% from last year
- Quarterly revenue fell short of the 116.5 billion yuan analyst consensus
- Adjusted net profit rose 80.9% to 11.3 billion yuan, exceeding forecasts
- Hong Kong shares closed down 2.81% at 41 Hong Kong dollars
- Stock has gained 18.2% in 2025 despite Tuesday’s decline
Xiaomi reported third quarter earnings that painted a complex picture for investors. Revenue climbed 22.3% year-over-year to 113.1 billion yuan for the quarter ending September 30.
The company’s quarterly sales reached $15.90 billion. Analysts polled by LSEG had projected higher revenue of 116.5 billion yuan.
Profit performance told a different story than revenue. Adjusted net profit jumped 80.9% compared to the same quarter in 2024.
Xiaomi posted adjusted net profit of 11.3 billion yuan. The figure beat analyst expectations of 10.3 billion yuan.
Market reaction focused on the revenue disappointment. Shares traded in Hong Kong fell 2.81% on Tuesday to close at 41 Hong Kong dollars.
Margin Expansion Drives Profit Beat
The profit surge revealed improving operational efficiency. An 80.9% profit increase substantially outpaced the 22.3% revenue growth.
These expanding margins came as Xiaomi invests in electric vehicle manufacturing. The company maintains its position as the world’s third-largest smartphone producer.
Xiaomi’s business spans smartphones, home appliances, and electric vehicles. The EV division represents the newest growth initiative.
Year-to-Date Performance Remains Positive
Tuesday’s stock decline didn’t erase 2025 gains. Shares have climbed 18.2% since the beginning of the year.
The year-to-date performance demonstrates investor confidence in the company’s strategy. EV expansion requires substantial capital but hasn’t stopped profit growth.
Revenue came up about 3 billion yuan short of analyst projections. The gap raised concerns about demand trends.
The profit beat of roughly 10% showed strong cost discipline. Xiaomi managed expenses effectively while expanding into new markets.
Chinese competition in both smartphones and electric vehicles remains intense. The company faces pressure in its established and emerging businesses.
Smartphone sales generate the majority of current revenue. Home appliances provide additional steady income streams.
Investment in EVs Continues
Electric vehicle operations require heavy spending on facilities and technology. These investments haven’t prevented quarterly profit margin expansion.
Hong Kong trading showed moderate volume during Tuesday’s session. Investors weighed the revenue shortfall against the profit strength.
Third quarter results continued growth trends from earlier in 2025. Both revenue and profit posted double-digit year-over-year increases.
The mixed results created uncertainty about investor priorities. Revenue misses typically draw more immediate attention than profit beats.
Xiaomi’s 11.3 billion yuan adjusted net profit marked the quarter’s standout number. The company exceeded consensus estimates by approximately 1 billion yuan.
The revenue of 113.1 billion yuan represented solid growth despite missing targets. A 22.3% increase from last year’s third quarter showed sustained momentum.
Profit margins improved even as the company invested in capital-intensive electric vehicles. This balance demonstrates operational execution across multiple business lines.
The stock’s 2.81% decline on earnings day contrasted with its strong 2025 performance. Shares remain up 18.2% for the year through Tuesday’s close.
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