ZTE stock falls 2.91 percent as profit pressure deepens

Published on 10/08/2026 at 06:22 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

ZTE stock was trading at CNY 29.69 on October 8, 2026, down 2.91 percent from the prior close. First-half revenue rose 9.1 percent to CNY 78.03 billion.

ZTE, CNE1000004Y2, Illustration mit AI erstellt.

ZTE Corporation stock (ISIN CNE1000004Y2) was trading at CNY 29.69 on the Shenzhen Stock Exchange on October 8, 2026 at 12:06 p.m. CST, down 2.91 percent from the prior close of CNY 30.58. The move comes as the company's latest half-year figures show faster sales growth but a sharp decline in profit.

Revenue rises as profit falls

According to Futu on September 22, 2026, ZTE reported operating revenue of CNY 78.03 billion for the first half of 2026, up 9.1 percent year over year. Net profit attributable to shareholders fell 45.6 percent to CNY 2.75 billion, while gross margin declined to 25.5 percent from the prior year's level.

The mix explains the tension in the figures. Computing-related revenue grew more than 55 percent year over year and represented 35.1 percent of first-half revenue, while government and enterprise revenue reached CNY 27.63 billion, up 43.5 percent from the same period a year earlier, according to Futu.

AI investment changes the mix

ZTE's first-half expansion is concentrated in computing infrastructure rather than a uniform improvement across the portfolio. Futu reported high-end server and storage revenue growth of nearly 60 percent and high-end data-center revenue growth of more than 90 percent, while the company continued investing in lower-margin activities.

That shift gives investors a measurable trade-off: revenue increased by CNY 6.5 billion from the comparable first-half period, but net profit decreased by CNY 2.3 billion. Foreign-exchange losses and the higher share of lower-margin businesses were identified as factors behind the pressure on profitability.

Analysts remain divided

Goldman Sachs maintained a Hold rating on ZTE on September 28, 2026, with a price target of HKD 32.60, according to Markets Insider. The same report listed a Hold consensus and an average target of HKD 27.06, showing that analysts were weighing the computing opportunity against weaker near-term profitability.

Stock trades near yearly low

ZTE stock was trading at CNY 29.69 on October 8, 2026, with a session range of CNY 29.60 to CNY 30.88. The 52-week range stood at CNY 29.60 to CNY 55.85, placing the price at the lower end of its yearly band, while market capitalization was CNY 142.0 billion and volume reached 46,770,048 shares.