--- title: "Xiaomi's adjusted net profit in the fourth quarter fell by 24%, slightly exceeding expectations. Over the next three years, AI investment will be at least 60 billion" type: "News" locale: "en" url: "https://longbridge.com/en/news/280295350.md" description: "Xiaomi Corporation (1810) announced its Q4 2025 results, with revenue of HKD 116.917 billion, a year-on-year increase of 7.3%; adjusted net profit of HKD 6.349 billion, a year-on-year decrease of 23.7%. The mobile phone business faced pressure, with shipments down 11.6% and revenue of HKD 44.339 billion. Full-year revenue reached HKD 457.3 billion, an increase of 25%; adjusted net profit was HKD 39.17 billion, an increase of 43.8%. Innovative businesses such as smart electric vehicles and AI became growth highlights, with segment revenue of HKD 106.1 billion, an increase of 223.8%. In the next three years, AI investment will be at least HKD 60 billion" datetime: "2026-03-24T10:10:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280295350.md) - [en](https://longbridge.com/en/news/280295350.md) - [zh-HK](https://longbridge.com/zh-HK/news/280295350.md) --- # Xiaomi's adjusted net profit in the fourth quarter fell by 24%, slightly exceeding expectations. Over the next three years, AI investment will be at least 60 billion Xiaomi Corporation (1810) announced its Q4 2025 results, with revenue of RMB 116.917 billion, a year-on-year increase of 7.3%, slightly exceeding market expectations of RMB 116.58 billion; adjusted net profit was RMB 6.349 billion, a year-on-year decrease of 23.7%, also slightly above the expected RMB 6.07 billion. The group stated that it faced headwinds such as a significant increase in storage costs and intensified industry competition in the last quarter, but the business remained resilient, achieving record total revenue. ## Mobile Business Under Pressure, Shipments Down 11.6% In terms of mobile business, Q4 mobile revenue was RMB 44.339 billion, a year-on-year decrease of 13.6%, impacted by a year-on-year decline in shipments of 11.6% to 37.7 million units, with the average selling price (ASP) of smartphones also dropping by 2.2% to RMB 1,176. ## Annual Adjusted Net Profit Up 44%, Automotive Business Records Profit for the First Time For the full year, the group's revenue was RMB 457.3 billion, a year-on-year growth of 25%; adjusted net profit was RMB 39.17 billion, an increase of 43.8%. Smart electric vehicles and innovative businesses such as AI became growth highlights, with segment revenue of RMB 106.1 billion, a year-on-year increase of 223.8%, of which smart electric vehicle revenue was RMB 103.3 billion. The segment's gross margin was 24.3%, an increase of 5.8 percentage points year-on-year, and it achieved positive operating income for the first time, recording a profit of RMB 900 million. ## Xiaomi Cars Delivered 411,000 Units in the Year, Targeting 550,000 Units This Year Xiaomi Cars delivered 411,000 units for the year, with 145,000 units delivered in Q4. The group has set a target for 2026, aiming to deliver 550,000 units. ## Mobile × AIoT Segment Revenue Up 5.4% The Mobile × AIoT segment had annual revenue of RMB 351.2 billion, a year-on-year increase of 5.4%. Among them, smartphone revenue was RMB 186.4 billion, down 2.8%; IoT and lifestyle consumer products revenue was RMB 123.2 billion, up 18.3%, benefiting from national subsidies and products such as smart home appliances and tablets; internet service revenue was RMB 37.4 billion, up 9.7%, mainly contributed by advertising business. ## R&D Spending Up 38%, At Least RMB 60 Billion Investment in AI Over the Next Three Years In terms of R&D, last year's R&D expenditure was RMB 33.1 billion, a year-on-year increase of 37.8%, with R&D personnel reaching 25,457, a record high. Cumulative R&D investment over the past five years reached RMB 105.5 billion, and the group expects to invest at least RMB 60 billion in AI over the next three years. The group also anticipates that cumulative R&D expenditure will exceed RMB 200 billion over the next five years starting from 2026 ### Related Stocks - [516380.CN](https://longbridge.com/en/quote/516380.CN.md) - [XIACY.US](https://longbridge.com/en/quote/XIACY.US.md) - [01810.HK](https://longbridge.com/en/quote/01810.HK.md) ## Related News & Research - [Xiaomi 17T Pro arrives with the company’s biggest battery yet](https://longbridge.com/en/news/287925083.md) - [How to fix AI's branding problem, according to top marketers](https://longbridge.com/en/news/287767399.md) - [Supermicro and Verda Deliver Sustainable, Full-Stack AI Cloud Infrastructure for Next-Generation AI Workloads | SMCI Stock News](https://longbridge.com/en/news/287776444.md) - [Don't use AI when emailing Paul Graham](https://longbridge.com/en/news/287659485.md) - [CertiK Launches AI Skill Scanner, An Antivirus Software for the AI Age](https://longbridge.com/en/news/287832378.md)