TLDR
- Xiaomi stock jumped 5.6% to HK$27.64 following its Q2 2026 earnings release
- Q2 revenue came in at RMB 108.9 billion ($16.15 billion), down 6.1% year-on-year but beating expectations
- Smartphone average selling prices hit a record high, with gross margin of 8.5% beating expectations despite high memory costs
- EV unit delivered 104,199 vehicles in Q2; global monthly active users hit a record 766.5 million
- Management said memory cost increases are slowing, and pre-sale orders for the new Pengcheng EV model beat internal targets
Xiaomi stock jumped 5.6% to HK$27.64 on Tuesday after the company posted Q2 2026 results that beat market expectations, easing concerns about rising component costs and slowing smartphone demand.
Q2 revenue came in at RMB 108.9 billion, or roughly $16.15 billion. That was down 6.1% year-on-year but up 9.9% from Q1 2026, and it came in ahead of what analysts had pencilled in.
Gross profit fell 17.2% from the same quarter last year to RMB 21.6 billion. Operating profit dropped 19.1% annually to RMB 10.9 billion. The year-on-year declines reflect the pressure from higher memory component costs and tougher competition flagged by the company.
Xiaomi's Q2 2026 results are in. Revenue reached RMB108.9 billion, surpassing RMB100 billion once again, while adjusted net profit came in at RMB6.2 billion. Global MAU climbed to a record high of 767 million, and connected devices on our AIoT platform reached 1.16 billion.… pic.twitter.com/VTTPcmtXmq
— Xiaomi (@Xiaomi) August 18, 2026
Adjusted net profit for the quarter was RMB 6.2 billion, a 2.4% gain from Q1 2026.
Despite those year-on-year drops, investors focused on the sequential improvement and what management had to say about the cost outlook going forward.
Smartphone Segment Holds Up
The smartphone division was a bright spot. Average selling prices hit a record high in the quarter, and the segment’s gross margin of 8.5% came in ahead of market expectations, even with memory costs running historically high.
Global smartphone shipments totalled 31.2 million units in Q2, down 6% from the same period in 2025.
Global monthly active users reached a record 766.5 million, up 4.8% year-on-year. The internet services segment posted a gross margin of 76.8%.
EV Business Keeps Delivering
Xiaomi’s EV and smart electric vehicle unit delivered 104,199 vehicles during the quarter. That continues the ramp the company has been on since entering the EV market.
Pre-sale orders for the new Pengcheng EV model came in above internal expectations, which gave investors another reason to feel better about the segment’s near-term trajectory.
Management noted that the pace of memory cost increases is shifting to a more gradual rate. That was seen as a key reassurance, given that memory pricing had been one of the main overhangs on the stock.
Xiaomi noted that geopolitical uncertainty, rising component costs, and intense competition all continued to weigh on the business during the quarter. AI advancement was flagged as a factor shaping the industry landscape.
The stock was among the few notable movers in Hong Kong on the day, with the broader Hang Seng index trading largely flat.
Xiaomi’s adjusted net profit of RMB 6.2 billion for Q2 2026 marked a sequential gain of 2.4% from Q1 2026.
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