Xiaomi reported 7.3% revenue growth to CNY 116.9 billion in the fourth quarter, its slowest quarterly increase since 2023, as electric vehicle momentum failed to offset smartphone weakness. The company delivered 145,115 vehicles, more than doubling year-over-year, with December deliveries exceeding 50,000 units ahead of China's planned EV subsidy reduction in 2026. The EV segment generated CNY 1.1 billion in profit and achieved its first full-year profit in 2025. Founder Lei Jun targets 550,000 vehicle deliveries in 2026, up from 410,000 last year, with European expansion planned for 2027. However, smartphone shipments fell 11.5% despite overall market growth, pressured by rising memory costs and supply constraints. IDC forecasts a 12.9% global smartphone market contraction this year. Xiaomi is also investing in AI and robotics to compete with Alibaba and Tencent.

Xiaomi has reported record revenue of RMB457.3 billion for 2025, up 25% year-on-year, with adjusted net profit reaching RMB39.2 billion, a 44% increase. The Chinese technology company's gross profit margin improved to 22.3%. The company shipped 165 million smartphones globally, generating RMB186.4 billion in revenue. Its Internet of Things business surpassed RMB120 billion for the first time, rising 18.3% year-on-year. Xiaomi's electric vehicle division delivered 411,082 units in 2025, exceeding its initial 300,000-unit target, with sales revenue reaching RMB103.3 billion. The EV and AI innovation segment generated RMB106.1 billion, up over 200% year-on-year. The company invested RMB33.1 billion in research and development and plans to increase spending to over RMB40 billion in 2026.

Xiaomi reported a 24% decline in net profit for the fourth quarter of 2025, as the Chinese tech company faced challenges in both its smartphone and electric vehicle businesses. The unexpected drop reflects sluggish sales and intense market competition. The Beijing-based company, which has expanded from smartphones into electric vehicles, is navigating headwinds across its key business segments. In response, Xiaomi plans to make major research and development investments whilst managing regulatory scrutiny. The results highlight the mounting pressures facing Chinese tech firms as they compete in increasingly crowded markets whilst dealing with operational setbacks in emerging business lines like electric vehicles.