Xiaomi Stock: Profit Soars 81% But Shares Drop on Revenue Miss

TLDR

• Third quarter revenue reached 113.1 billion yuan ($15.90 billion), up 22.3% year-over-year
• Revenue missed analyst forecasts of 116.5 billion yuan
• Net profit jumped 80.9% to 11.3 billion yuan, beating expectations
• Stock declined 2.81% despite profit growth
• Shares up 18.2% year-to-date through Tuesday’s close

Xiaomi delivered mixed third quarter results as revenue growth failed to meet Wall Street expectations. The company posted revenue of 113.1 billion yuan for the period ending September 30.

The 22.3% year-over-year increase translated to $15.90 billion in quarterly sales. Analysts surveyed by LSEG had anticipated revenue of 116.5 billion yuan.

The revenue shortfall didn’t tell the complete story. Xiaomi’s adjusted net profit climbed 80.9% compared to last year’s third quarter.

The company reported adjusted net profit of 11.3 billion yuan. This figure surpassed analyst estimates of 10.3 billion yuan.

Investors reacted to the revenue miss rather than the profit beat. Hong Kong-listed shares dropped 2.81% on Tuesday, finishing at 41 Hong Kong dollars.

Strong Profit Growth Emerges

The profit numbers revealed improving margins across Xiaomi’s business. An 80.9% profit increase far outpaced the 22.3% revenue gain.

This margin expansion occurred as the company invests in electric vehicle production. Xiaomi ranks as the world’s third-largest smartphone maker while building its EV business.

The company’s product portfolio spans smartphones, home appliances, and now electric vehicles. Each division contributes to the overall revenue mix.

Market Response and Stock Movement

The stock’s daily decline contrasted with its 2025 performance. Shares have gained 18.2% since January despite Tuesday’s selloff.

Year-to-date gains reflect investor optimism about the EV expansion. The new division requires heavy capital investment but hasn’t derailed profit growth.

Xiaomi’s revenue came up roughly 3 billion yuan short of expectations. The miss raised questions about demand in its core markets.

Profit performance suggested effective cost management. The company beat profit estimates by approximately 10%.

Competition in Chinese smartphones and electric vehicles continues intensifying. Xiaomi faces established players in both markets.

The smartphone division generates most company revenue currently. Home appliances provide steady supplemental income.

Electric vehicle operations demand substantial manufacturing and technology spending. This investment hasn’t prevented quarterly profit expansion.

Trading volume remained moderate as shares declined in Hong Kong. The market focused on the revenue gap rather than profit strength.

Third quarter results extended Xiaomi’s growth pattern from earlier 2025 quarters. Both top and bottom line figures showed double-digit gains.

The company exceeded profit expectations while missing revenue targets. This divergence created the mixed market reaction on Tuesday.

Xiaomi’s 11.3 billion yuan in adjusted net profit represented the quarter’s strongest metric. The figure came in 1 billion yuan above consensus estimates.

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