Huawei’s H1 Profit Drops 36% Amid Rising Costs and Increased R&D Spending
POLICY WIRE — Beijing, China — Huawei Technologies, the Chinese tech giant, announced a 36% decrease in its first-half net profit, attributing the decline to escalating input costs and increased...
POLICY WIRE — Beijing, China — Huawei Technologies, the Chinese tech giant, announced a 36% decrease in its first-half net profit, attributing the decline to escalating input costs and increased research and development (R&D) expenditures. Despite this, the company saw a 9.6% rise in revenue.
The net profit for the period from January to June fell to 23.81 billion yuan, a more significant drop compared to the 32% decrease recorded in the same period last year. Huawei’s revenue, however, increased to 427 billion yuan, marking its highest first-half revenue in recent years.
Huawei’s R&D spending reached 96.9 billion yuan in the first half of 2026, representing approximately 23% of its total revenue. This consistent investment in R&D has been a hallmark of Huawei’s financial strategy for years, with the company having spent over 1.3 trillion yuan on research and development over the past decade.
The company’s strategic pivot towards domestic chip independence, in response to U.S. sanctions, has led to increased financial risks. Huawei’s commitment to R&D, despite the profit decline, underscores its focus on long-term technological advancement and self-reliance.
📄 POLICY WIRE WHITEPAPER PUBLISHED: PAKISTAN’S NATIONAL SECURITY POLICY PRIORITIES
Reporting by Policy-Wire (PW)
