Huawei Technologies said its first-half 2026 revenue increased 9.6 percent to 467.82 billion yuan ($69.6 billion) as the Chinese technology giant stepped up investment in artificial intelligence, semiconductors, telecom technology, smart devices and intelligent automotive solutions.
Huawei financial result for H1 2026 indicates that all Huawei business segments recorded year-on-year revenue growth during the January-June period, although the privately held company did not disclose individual segment revenue.
Huawei significantly increased technology investment during the period. Research and development spending surged 25.2 percent to 121.38 billion yuan, equivalent to 25.9 percent of first-half revenue.
Higher R&D and input costs affected earnings, with first-half net profit declining 36 percent to 23.81 billion yuan ($3.54 billion). The profit decline accelerated from the 32 percent decrease recorded during the same period in 2025, Reuters reported.
Huawei R&D Spending Reaches 121.38 Billion Yuan
Huawei’s 121.38 billion yuan first-half R&D investment highlights the scale of its technology strategy.
R&D expenditure increased 25.2 percent, substantially faster than the 9.6 percent revenue growth, as Huawei directed investment toward artificial intelligence, semiconductors, communications technology, smart devices and intelligent automotive solutions.
Huawei has been expanding its AI computing infrastructure and Ascend AI processor ecosystem as China accelerates efforts to develop domestic alternatives to foreign semiconductor technologies.
The company is also investing in AI-oriented telecom products, computing hardware, smartphones and smart-driving technologies.
Huawei’s technology investment has accelerated since U.S. restrictions limited its access to advanced semiconductor technologies and contributed to a 29 percent decline in annual revenue in 2021.
Product Costs Rise 12.4% as Memory Prices Increase
Higher technology investment was accompanied by increasing operating costs.
Huawei’s cost of manufacturing products increased 12.4 percent during the first half of 2026, exceeding its 9.6 percent revenue growth. Rising memory chip prices were among the factors affecting the consumer electronics business, while administrative expenses also increased.
First-half net profit consequently dropped 36 percent to 23.81 billion yuan ($3.54 billion).
Operating cash flow also deteriorated, moving from 31.18 billion yuan of positive operating cash generation to 39.88 billion yuan of cash use.
Huawei said its results were consistent with its forecasts, although its full-year outlook remains under review because of external uncertainties and rising input costs.
Huawei Revenue Growth Accelerates From 2025
Huawei’s first-half performance represents an acceleration from its growth rate in 2025.
Huawei generated 880.9 billion yuan in revenue during 2025, representing growth of 2.2 percent. It was the company’s second-highest annual revenue, behind the record 891 billion yuan generated in 2020.
The 9.6 percent growth achieved during the first half of 2026 therefore represents a significant acceleration from the 2.2 percent full-year growth recorded in 2025.
Huawei did not disclose how much of the first-half growth came from telecom infrastructure, smartphones, cloud, AI computing or automotive technology, but said every business recorded year-on-year revenue growth.
Huawei Raises R&D Intensity to 25.9%
Huawei’s latest R&D increase builds on substantial investment in technology development.
The company invested 192.3 billion yuan in R&D during 2025, equivalent to 21.8 percent of annual revenue. Its cumulative R&D investment over the preceding decade exceeded 1.382 trillion yuan, according to Huawei’s 2025 annual report.
Huawei had approximately 114,000 R&D employees at the end of 2025, representing about 53.7 percent of its workforce. The company also held approximately 165,000 active granted patents and had signed more than 260 patent licensing agreements.
The first-half 2026 R&D ratio of 25.9 percent therefore exceeded the 21.8 percent recorded for full-year 2025.
Huawei’s H1 2026 results show a company prioritising technology investment over near-term earnings. Revenue increased 9.6 percent, while R&D spending surged 25.2 percent and accounted for more than a quarter of revenue.
The strategy is strengthening Huawei’s investment across AI infrastructure, semiconductors, telecom networks, smart devices and intelligent vehicles, but higher R&D and manufacturing costs are putting pressure on profitability and cash generation.
BABURAJAN K
