---
title: "Xiaomi climbs 5% as handset margins beat despite profit slide"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296320716.md"
description: "Xiaomi Q2 adj. profit fell 42.6% but handset margins beat; Barclays says AI strategy is underestimated."
datetime: "2026-08-19T08:00:55.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296320716.md)
  - [en](https://longbridge.com/en/news/296320716.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296320716.md)
generator: "portal-rs"
---

# Xiaomi climbs 5% as handset margins beat despite profit slide

Xiaomi Group (1810.HK) climbed over 5% during regular trading to HK$**27.50**, with turnover reaching HK$**9.01 billion**. The advance came despite the company reporting a second-quarter revenue decline of **6.1%** to RMB **108.92 billion** and a **42.6%** drop in adjusted net profit to RMB **6.22 billion**.

Investors focused on brighter spots beneath the headline numbers. Smartphone gross margin hit **8.5%**, beating expectations, while average selling prices reached a record high. Losses in the smart EV and AI innovation segment narrowed to RMB **2.6 billion**, with the division growing **17.1%** year on year. Management said memory-cost pressures are expected to ease in the third quarter and described the handset business as "under control."

Brokerages echoed the constructive tone. Barclays said Xiaomi's AI strategy is "significantly underestimated" by the market and maintained Overweight with a **HK$30** target. Morgan Stanley called smartphone margins a "positive surprise," keeping Overweight at **HK$32**. Goldman Sachs reiterated Buy but trimmed its target to **HK$39**.

Separately, Xiaomi is set to unveil its next-generation humanoid robot prototype tonight at the 2026 World Robot Conference. The unit stands about 1.7 meters tall, weighs 66 kilograms and features 66 degrees of freedom. The company also plans to showcase its full "human-car-home" ecosystem at IFA in Berlin in September, marking a push to bring the Mijia brand into the European market at scale.

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**