Huawei's R&D Hits 26% of Sales as Profit Plunges 37%
shashib · x · 2026-09-02
Shashi Bellamkonda analyzes Huawei's H1 2026 financial results. Huawei's R&D spending reached 121.38 billion yuan ($17B), up 25.2% year-over-year, accounting for 25.9% of first-half sales. This ratio sits at the high end of the 20-25% R&D intensity band the author recommends for tech companies. While revenue grew 9.6% to 467.82 billion yuan, net profit plunged 37% to 23.43 billion yuan due to rising operating costs (e.g., memory) and the massive R&D burden. R&D spending was more than five times the net profit for the period.
Related event: Huawei Revenue Up 9.55% as R&D Spending Nears Nvidia Levels(3 posts)→
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