Shares of ZTE Corporation (00763) plummeted 5.08% in intraday trading on Friday, following the release of its third-quarter 2025 financial results that significantly missed market consensus across key metrics.

The telecommunications equipment manufacturer reported disappointing figures for revenue, margins, and profitability in Q3 2025. The underperformance was primarily attributed to unfavorable shifts in product mix, with the high-margin carrier network business taking a substantial hit due to weak telecom capital expenditure. Adding to the company's woes were timing issues in revenue recognition, which further impacted the quarterly results.

In response to ZTE's underwhelming performance, UOB Kay Hian maintained a "Hold" rating on the stock but lowered its target price from HK$40 to HK$35.8. However, the financial services firm noted that a notable recovery in the carrier network segment is expected in Q4 as ZTE begins recognizing related revenues. This potential turnaround offers a glimmer of hope for investors amid the current downturn.