Lei Jun reports Xiaomi’s Q2 performance, high-end mobile phones are taking effect, and automotive AI is still “burning money”

Zhidongxi Author | Wang Han Editor | Bingqian Zhidongzhi reported on August 18 that today, Xiaomi released its second quarter (Q2) performance report for 2026. Revenue and net profit recovered slightly. Lei Jun posted Weibo to report performance data to netizens. Xiaomi Group partner and group president Lu Weibing revealed at the earnings call that the cumulative shipments of the Xuanjie O1 chip launched by Xiaomi last year on three terminals have exceeded one million, and a new generation of Xiaomi Xuanjie chips will be released soon. ▲ Lei Jun posted a performance report on Weibo (Source: Weibo) The performance report showed that Xiaomi’s second quarter revenue was approximately 108.9 billion yuan, a year-on-year decrease of 6.1%; its adjusted net profit was approximately 6.2 billion yuan, a year-on-year decrease of 42.6%. ▲Xiaomi Group’s revenue and net profit (data range: Q2 2025-Q2 2026, Smart East-West Chart) In the second quarter, Xiaomi’s capital expenditure was approximately 3.6 billion yuan, of which capital expenditure for innovative business segments such as smart electric vehicles and AI was 2.4 billion yuan, accounting for approximately 67% of total capital expenditure; R&D expenditure was approximately 9.2 billion yuan, a year-on-year increase of nearly 19%, and the cumulative R&D investment in the first half of the year was 18.2 billion yuan. The financial report shows that in the second quarter, Xiaomi’s “mobile phone × AIoT” business revenue reached 84 billion yuan, with gross profit margin stable at 20%. Lu Weibing disclosed at the earnings call that memory price increases exceeded Xiaomi’s expectations. From a sales perspective, rising memory prices have the most obvious impact on low-end and entry-level models. Lu Weibing predicted that the memory price increase is expected to slow down in the middle of the third quarter, maintain a slow growth trend in the fourth quarter, and the overall situation will gradually become controllable. In terms of innovative business, the overall revenue of smart electric vehicles and AI sectors increased by 17.1% year-on-year to 24.9 billion yuan. Among them, smart electric vehicles contributed revenue of 23.9 billion yuan, and emerging business revenue such as AI accounted for approximately 1 billion yuan, including revenue from the commercialization of the Xiaomi MiMo large model. However, the innovative business is still in the strategic investment period. This quarter, the segment's operating loss was 2.6 billion yuan. Regarding this part of the loss, Xiaomi Group CFO Lin Shiwei explained that Xiaomi currently