Xiaomi stock falls 2.55 percent as Q2 profit drops sharply

Published on 09/29/2026 at 10:27 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Xiaomi stock traded at HKD 25.20 on HKEX on September 29, 2026. Q2 adjusted net profit was RMB 6.2 billion, down 42.6 percent year over year.

Xiaomi, KYG9830T1067, Illustration mit AI erstellt.

Xiaomi Corporation (ISIN KYG9830T1067) stock last stood at HKD 25.20 on HKEX on September 29, 2026 at 4:08 p.m. HKT, down 2.55 percent from HKD 25.86. The move comes against a Q2 2026 earnings picture in which adjusted net profit fell 42.6 percent year over year to RMB 6.2 billion.

Profit pressure meets new growth

According to Yahoo Finance on August 18, 2026, Xiaomi reported Q2 revenue of RMB 108.9 billion and adjusted net profit of RMB 6.2 billion. Group gross margin was 19.8 percent, while the smartphone and AIoT segment generated RMB 84.0 billion in revenue with a 20.0 percent gross margin.

The contrast is important for investors. Studio Global reported that Q2 revenue declined 6.1 percent year over year, even as it increased 9.9 percent from Q1. The sequential improvement in revenue did not offset the annual profit decline.

EV investment raises the stakes

Xiaomi's smart EV, AI and other new initiatives segment produced RMB 24.9 billion of Q2 revenue, up 17.1 percent year over year, according to the Yahoo Finance transcript. Xiaomi delivered 104,199 vehicles in the quarter, but the segment posted an operating loss of RMB 2.6 billion as the company continued investing in EVs and AI.

That trade-off gives the stock a clear operating fault line. The new businesses are expanding faster than the core smartphone and AIoT operation, yet their investment burden is weighing on current profitability while memory costs remain elevated.

Targets split above the market

Analyst expectations also show a wide valuation debate. Simply Wall St wrote on September 17, 2026 that an analyst target moved to HKD 22.80 from HKD 19.05. Separately, ET Net reported on September 24, 2026 that Citi maintained a Buy rating and a HKD 34.00 price target.

The current HKD 25.20 price sits 55.44 percent below Xiaomi's 52-week high of HKD 56.55 and 18.31 percent above its 52-week low of HKD 21.30. The range captures the market's competing views on near-term earnings pressure and the longer-term EV, AI and ecosystem opportunity.

Xiaomi stock trades below its yearly high

Xiaomi stock was last at HKD 25.20 on HKEX on September 29, 2026 at 4:08 p.m. HKT, with a market capitalization of HKD 651.6 billion and volume of 145,971,949 shares.