Xiaomi Buys Back Shares at 52-Week Low as EV Losses and Smartphone Margin Crush Offset Product Expansion

Xiaomi's share buyback and new product features fail to convince investors as Q1 revenue drops 10.9% and adjusted net profit plunges 43.1%. Stock down 32.5% year-to-date.

The Chinese tech group is trying to prop up its stock with one hand while rolling out new gadget features with the other, but neither is convincing investors. On Friday, Xiaomi purchased 3.5 million Class B shares for roughly 98 million Hong Kong dollars, immediately cancelling them. The buyback comes under an existing authorization that allows the company to repurchase up to 20 billion Hong Kong dollars in equity before the next annual general meeting.

Yet the intervention did little to halt the slide. Xiaomi shares closed at 3.03 euros in Hong Kong, down 3.19% on the day and only a whisker above a fresh 52-week low of 2.98 euros. The stock has now lost 32.52% since the start of the year and 49.79% over the past twelve months, sitting 54.70% below its 52-week high.

The timing of the buyback coincides with a push to deepen integration with Apple’s ecosystem. Xiaomi’s 17T Pro model is receiving an over-the-air update — software version OS3.0.308.0 — that extends Quick Share to Apple devices via AirDrop compatibility. Users will need an active Google account and both Bluetooth and Wi-Fi turned on to transfer files. Separately, the Redmi Watch 6 is launching internationally in Poland, Romania, Thailand and other markets, featuring a 2.07-inch AMOLED display, peak brightness of 2,000 nits and up to 24 days of battery life in a variant with NFC. The Mijia Air Purifier 6, controllable through HyperOS, rounds out the latest additions to Xiaomi’s smart-home lineup.

None of that has shifted the market’s focus from the hard numbers. In the first quarter ending March 31, 2026, revenue came in at 99.1 billion renminbi, down 10.9% from the prior year. Adjusted net profit plunged 43.1% to 6.07 billion renminbi. Earnings per share tumbled from 0.44 renminbi to 0.18 renminbi. The company’s electric vehicle and AI segment contributed 19.9 billion renminbi in revenue but booked an operating loss of 3.1 billion renminbi, with a gross margin of just 20.1%.

The fundamental picture remains strained. Rising component costs and an aggressive price war in smartphones are eating into margins, while the expensive build-out of the EV division continues to bleed cash. The buyback reduces the share count and provides a mathematical lift to earnings per share, but it does nothing to address the underlying pressure on profitability. Analysts currently forecast full-year EPS of 1.13 renminbi, a level that would still represent a significant decline from the prior year.

Technically, the stock looks battered. It trades well below its 50-day moving average of 3.38 euros and far under its 200-day average of 4.31 euros, with the distance from the long-term trend line reaching as much as 28.40%. The relative strength index sits at 36.5, suggesting selling pressure is easing but not yet signalling a reversal.

All eyes are now on the second-quarter results, due on August 26, 2026. Investors will be watching closely to see whether the product offensive — from AirDrop-compatible phones to wearable devices and smart-home gadgets — can translate into a reversal of the revenue and profit decline. Without demonstrable operating progress, the risk of a sustained break below the 3-euro threshold remains high.