SHANGHAI — Huawei Technologies reported a significant deceleration in revenue growth for 2025, with annual figures revealing the impact of China’s sluggish consumer market and ongoing geopolitical pressures. The tech giant’s financial results, released Tuesday, show total revenue reaching 880.9 billion yuan ($126 billion), representing a modest 2.2% increase from the previous year’s 862 billion yuan.
The growth rate marks a dramatic slowdown from the 22% surge recorded in 2024, primarily driven by stagnation in the company’s consumer devices division. Despite reclaiming its position as China’s leading smartphone vendor, Huawei’s consumer business revenue reached 344.5 billion yuan in 2025—a mere 1.6% increase compared to the previous year’s 38.3% expansion. This slowdown occurred against the backdrop of a contracting domestic smartphone market, as reported by International Data Corporation.
Rotating Chairwoman Meng Wanzhou acknowledged the challenges, stating the company had ‘worked to overcome formidable challenges’ while navigating ‘a future that is full of uncertainty.’
The telecommunications infrastructure segment similarly experienced moderated growth, with revenue increasing 2.6% year-on-year compared to 4.9% in 2024. Company officials attributed this deceleration to cyclical investment patterns within the industry.
Huawei’s performance continues to be shaped by the prolonged technological standoff between China and the United States. Since 2019, American sanctions have restricted the company’s access to critical US-made components and technologies, compelling strategic diversification.
In response to these challenges, Huawei dramatically increased its research and development investment, allocating 192.3 billion yuan—representing 21.8% of total revenue—toward innovation initiatives. This substantial investment has been channeled primarily into developing computing products designed for artificial intelligence applications.
The company’s net profit showed resilience, rising 8.7% to 68 billion yuan from 2024’s 62.6 billion yuan, indicating improved operational efficiency despite revenue headwinds.