Abstract

Xiaomi Corporation will report second-quarter results on August 18, 2026 post-Market. This preview distills consensus forecasts for revenue, margins, earnings, and segment dynamics, and frames the setup against last quarter’s delivery and profitability trends to help investors gauge what matters most on August 18, 2026.

Market Forecast

For the current quarter, consensus modeling points to revenue of 110.95 billion RMB, an adjusted EPS estimate of 0.23, and EBIT of 5.31 billion RMB. These imply year-over-year changes of a 3.39% decline in revenue, a 40.68% decline in EPS, and a 47.06% decline in EBIT. No explicit gross margin or net margin consensus has been provided for this quarter. The main business outlook centers on smartphones normalizing after a softer demand patch, with IoT and internet services providing partial cushion. The most promising segment remains Smart EV, AI and Other New Initiatives with revenue of 19.86 billion RMB and a developing growth runway, though year-over-year comparisons are not available in this dataset.

Last Quarter Review

Xiaomi Corporation delivered revenue of 99.14 billion RMB, a gross profit margin of 22.00%, net profit attributable to shareholders of 4.72 billion RMB, a net profit margin of 4.76%, and adjusted EPS of 0.23, representing a 10.92% year-over-year revenue decline and a 43.90% decline in adjusted EPS. Net profit fell 27.82% quarter-on-quarter, reflecting a softer mix and investment in new initiatives. By business line, smartphones generated 44.27 billion RMB, IoT and lifestyle 24.68 billion RMB, internet services 9.47 billion RMB, and Smart EV, AI and other new initiatives 19.86 billion RMB, while Other Related Businesses contributed 0.85 billion RMB.

Current Quarter Outlook

Smartphone business

Revenue sensitivity this quarter remains highest in smartphones, given their 44% revenue share last quarter and the direct pass-through to group top line. The forecasted revenue dip suggests unit softness and price competition, which could cap gross margin unless mix leans toward premium models or regional sales skew to higher-ASP markets. With no quantified margin guidance in the dataset, investors will focus on whether product-cycle support and channel normalization can offset competitive discounting; if so, the revenue decline could be less severe and flow-through to EBIT stabilization.

IoT and internet services

IoT and lifestyle, alongside internet services, continue to provide recurring monetization from the installed base and have historically supported blended margin resilience. While explicit year-over-year growth figures are unavailable here, the prior-quarter contribution of 24.68 billion RMB for IoT and 9.47 billion RMB for internet services highlights their role as ballast when smartphones soften. This quarter’s key watchpoint is the mix of higher-margin services within internet revenues; even modest growth in services can cushion EBIT pressure implied by the forecast.

Smart EV, AI and other new initiatives

Smart EV, AI and other new initiatives posted 19.86 billion RMB last quarter, establishing a sizable baseline for a segment still in ramp mode. The near-term earnings math is challenging, given the forecasted year-over-year decline in EBIT of 47.06% and in EPS of 40.68%, which suggests the segment’s scale-up and R&D intensity will weigh on operating leverage before unit volumes and software attach can catch up. For this quarter, investors will likely weigh delivery cadence, cost curves, and progress in AI feature monetization; any signs of improving utilization or disciplined opex could improve sentiment despite the headline EPS downtick.

Stock-price drivers

Three variables appear most pivotal for the share-price reaction. First, the degree to which smartphones can mitigate ASP pressure will influence gross margin versus last quarter’s 22.00%; a small beat here could offset revenue softness. Second, the magnitude of EV and AI investments relative to the EBIT run-rate will determine whether the implied earnings drag improves into the second half. Third, service monetization within the internet segment could offer a counter-cyclical buffer; if services expand as a share of revenue, the net margin could stabilize around or slightly above last quarter’s 4.76% despite lower headline EPS.

Analyst Opinions

Across recent institutional commentary, the prevailing stance is cautious, reflecting the model mix and margin headwinds embedded in the forecasts. The majority view emphasizes the projected 3.39% revenue decline and steeper compression in EBIT and EPS as signs that investment in new businesses and smartphone pricing dynamics will constrain near-term profitability. Analysts highlight the need for improved service monetization and visible EV scale effects to unlock operating leverage in the coming quarters. On balance, the consensus expectation is that management will reiterate disciplined execution while prioritizing long-term growth, but near-term prints may remain constrained by competitive intensity and ramp costs.