Huawei Reports Profit Drop in 1H25

Huawei released business results for the first half of 2025 to the Shanghai Clearing House. The document reveals a sharp decline in profit and continued revenue gains.

Net profit in the January to June period dropped 24.7% to CNY37.2 billion ($5.2 billion), with total revenue increasing 4% to CNY427.1 billion. Spending on R&D rose 9.1% to nearly CNY97 billion. The filing did not explain the profit drop, nor provide details on which sectors drove the revenue gains.

Despite continued trade sanctions, Huawei maintained its global position in telecoms equipment, ranked number 2 behind Ericsson in the RAN market outside of China. The company also returned to the top position in China’s smartphone market in Q2 after more than four years.

Huawei was recently hit by new measures in Europe, with Telefonica reportedly confirming plans to phase out its equipment from 5G networks in Spain and Germany to meet domestic regulatory guidelines. Over the past few years, the company has shifted its attention to the smart automotive sector, while continuing to adapt its core telecoms business and focus on the domestic enterprise segment.