ZTE stock reports revenue growth as profit pressure deepens

Published on 10/07/2026 at 03:19 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

ZTE stock reports CNY 78.025 billion in first-half revenue, up 9.05 percent year over year. Net profit fell 45.57 percent as AI investment reshaped the mix.

ZTE, CNE1000004Y2, Illustration mit AI erstellt.

ZTE Corporation (ISIN CNE1000004Y2) reported CNY 78.025 billion in first-half 2026 revenue, up 9.05 percent year over year. The result puts growth and profitability on opposite tracks as the Chinese telecom-equipment group shifts toward computing and AI infrastructure.

Revenue grows while profit falls

According to Futubull on September 17, 2026, ZTE's second-quarter revenue reached CNY 43.037 billion, up 11.54 percent year over year and 23.01 percent from the first quarter. Net profit attributable to shareholders was CNY 2.753 billion for the first half, down 45.57 percent year over year.

The pressure was visible in margins. First-half gross margin stood at 25.48 percent, down 6.97 percentage points year over year, while net margin fell to 3.57 percent, a decline of 3.5 percentage points, according to Futubull.

AI computing changes the mix

Computing-power revenue increased more than 55 percent in the first half and represented 35.1 percent of total revenue. Government and enterprise revenue reached CNY 27.631 billion, up 43.51 percent, while operator-network revenue declined 9.41 percent, showing where the growth is coming from and where the traditional business is weakening.

ZTE also highlighted its technology pipeline on September 30, 2026. In an official release, ZTE said its GigaMIMO project with China Mobile Research Institute won the 2026 Leading Lights Award for 5G and 6G innovation. Field trials cited by the company showed average throughput in overlapping coverage areas increasing by 25 percent.

Analysts see room for recovery

The analyst picture remains more constructive than the earnings trend. A Marketscreener overview dated September 15, 2026, lists an Outperform consensus from 8 analysts and an average price target of CNY 41.81 for ZTE, compared with a last close of CNY 32.01 on that page.

For investors, the central issue is whether computing growth can offset weaker operator demand quickly enough to rebuild margins. ZTE's first-half revenue growth of 9.05 percent is tangible, but the 45.57 percent profit decline shows that the transition is still costly.

Shenzhen quote stays below yearly high

ZTE stock was last at CNY 30.58 on the Shenzhen Stock Exchange on September 30, 2026, at 3:04 p.m. CST, down 0.46 percent from the prior close. The session range was CNY 30.53 to CNY 30.90, with 31,102,364 shares traded.