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Huawei Reports Profit Growth Amid Sanctions, Strategic Focus

  • 4 hours ago
  • 3 min read

Huawei Technologies reported an 8.6% rise in profit in 2025, maintaining a steady recovery momentum despite ongoing US sanctions. The Chinese telecommunications equipment maker focused on chip development and smartphones to defy restrictions.


Huawei store interior with people browsing. Cars displayed inside under bright lighting. Huawei logo prominently above the entrance.
Credit: UNSPLASH

Net profit reached 68 billion yuan (USD 9.8 billion) in 2025, an increase from 62.6 billion yuan in 2024. Total revenue for 2025 was 880.9 billion yuan, up 2.2% from 862.1 billion yuan in 2024.


Rotating Chairwoman Sabrina Meng Wanzhou stated that Huawei’s overall performance in 2025 remained steady and aligned with forecasts. Meng emphasised the company's commitment to strategy amid future uncertainty.


She said, "We are moving towards a future that is full of uncertainty, so we have to remain true to our strategy and maintain strategic focus." Meng added, "We will translate strategy to execution, keep cultivating the developer ecosystem, and pursue high-quality development."


While privately held, Huawei voluntarily discloses its key financial data regularly. Sales in 2025 were Huawei’s second-highest on record, behind 891 billion yuan in 2020. This followed the initial US sanctions in 2019, which impacted its mobile phone and international operations.


The results reflect Huawei's increased presence in artificial intelligence (AI) chip development. The company also staged a full comeback in the smartphone business in the past year, defying US restrictions on access to advanced technologies.


Huawei’s information and communications technology (ICT) infrastructure segment remained the largest contributor to sales. This unit, encompassing AI computing, carrier, and enterprise businesses, generated 375 billion yuan in 2025, a 2.6% increase from the previous year.


The consumer business unit, including smartphones, saw a 1.6% year-on-year growth. Sales in this segment reached 344 billion yuan.


David Wang Tao will assume the role of rotating chairman, with his tenure scheduled to run from April through September. Wang, who was the former head of Huawei’s ICT business and is currently deputy chairman of the board, will begin his term.


After years of keeping its semiconductor development plans private since the 2019 US sanctions, Huawei unveiled its AI chip road map previously. The company announced plans to launch upgraded Ascend AI chips over the next three years.


Huawei stated it developed the "world’s most powerful" supernode computing clusters, including Atlas 950 SuperPoD. These clusters debuted globally, utilising local chipmaking processes.


The company launched the Atlas 350 accelerator card for inference, boasting better performance than US rival Nvidia’s H20 card.


Huawei’s chip advancements also underpinned its strong return to the domestic handset market. An IDC report stated that Huawei surpassed Apple to reclaim the top position in mainland China’s smartphone market in 2025 with a 16.4% share.


This marked Huawei’s first full-year lead in China’s smartphone market since 2020, after the US tightened sanctions on the company.


The intelligent automotive solutions segment, featuring autonomous driving and intelligent vehicle offerings, was the fastest-growing business in 2025. Sales surged by 72% to 45 billion yuan.


Another positive area was the digital power segment, which saw sales jump 13% to reach 77 billion yuan.


Conversely, revenue in Huawei’s cloud computing segment declined 3.5% to 32 billion yuan. A company representative attributed this to a cloud business restructuring, moving some teams to the ICT infrastructure unit to match business development.


In 2025, Huawei invested a record 192.3 billion yuan, or 22% of its total revenue, in research and development.


  • Huawei Technologies reported an 8.6% profit increase and a 2.2% revenue rise in 2025, reaching 68 billion yuan (USD 9.8 billion) and 880.9 billion yuan respectively.

  • The company maintained steady recovery momentum through focus on chip development and smartphones, defying US sanctions.

  • ICT infrastructure was the largest segment, generating 375 billion yuan, while intelligent automotive solutions recorded the fastest growth at 72%.


Source: SCMP

 
 
 

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