Xiaomi's H1 Report Card Arrives With Buybacks Mounting and EV Ambitions Under Scrutiny
Published on 08/18/2026 at 05:30 | Redaktion boerse-global.de
The market's attention narrows to a single data point today: Xiaomi's second-quarter earnings, due at 13:30 CEST (19:30 Hong Kong time), followed by an investor call with audio webcast. The consensus forecast puts earnings per share at 0.220 CNY on revenue of 108.34 billion CNY — a notable step down from the 0.500 HKD per-share profit recorded in the same period last year.
The timing is awkward. Just days before opening its books, the company unveiled HyperOS 4.0, an Android-based operating system that leans heavily into integrated AI features and borrows visual cues from Apple's iOS. It's a useful reminder of Xiaomi's software ambitions, but it does little to shift expectations for the core smartphone and electric-vehicle businesses, where margin pressure has become the dominant theme.
A Stock Halved From Its Peak
Investors have already priced in a good deal of pessimism. The shares closed Monday at 2.87 euros, roughly 56 percent below the 52-week high of 6.54 euros reached last September. Year-to-date, the stock is down 34 percent — a slide that captures both the lofty expectations once attached to the EV division and the disappointment of recent interim updates. One brokerage note on Monday put the close at 2.85 euros, marginally under the 50-day moving average of 2.89 euros, underscoring how little momentum the stock has managed to build.
The market capitalization stands at approximately 72.77 billion euros. CLSA trimmed its price target in early August, citing an anticipated profit slump — a call that has helped set the cautious tone heading into today's release.
Should investors sell immediately? Or is it worth buying Xiaomi?
Buybacks Signal Confidence Despite the Slide
Management, for its part, is voting with its wallet. A Hong Kong exchange filing shows the company repurchased roughly 1.9 million Type-B shares on August 14 for 49.8 million Hong Kong dollars. That followed a near-identical buyback on August 11 — another 1.9 million shares for about 50 million Hong Kong dollars. The back-to-back purchases suggest Xiaomi is deliberately absorbing its own stock even as the broader market sours on the name.
SU7 Milestone Meets Delivery Reality
On the operational front, there's at least one bright spot: the SU7 sedan series has now surpassed 500,000 cumulative deliveries. The milestone lands at a moment when the auto division's broader trajectory is under question. Reuters reported in early August that vehicle sales this year are trailing the company's internal targets, prompting Xiaomi to accelerate plans for larger SUV models in an effort to regain lost momentum.
That mix of achievement and shortfall is likely to define today's numbers. The SU7's endurance proves the core model still has pull, but the gap between sales goals and actual deliveries for newer vehicles raises uncomfortable questions about profitability in the auto segment — and whether it can offset thinning margins in the smartphone business.
What Investors Will Watch
Full-year 2026 revenue is projected at 460.30 billion CNY, but the near-term focus is on whether margins in the low-yield smartphone division and the capital-hungry EV arm can hold steady or deteriorate further. Automated screening models have offered conflicting reads: one service on Sunday calculated a fair value well above the current price, while another technical system flagged the stock as a sell candidate on August 14. Neither replaces fundamental analysis, but both reflect the jittery mood ahead of the print.
A separate development worth noting: in early August, Xiaomi published a patent for a retractable logo on future electric vehicles, a design intended to improve aerodynamics while serving as a styling signature. It's a small detail that speaks to the company's long-term commitment to the EV business — a strategic bet that today's quarterly figures will only partially illuminate.
The next scheduled checkpoint arrives November 24, when third-quarter results are due. By then, investors will have a clearer sense of whether the current earnings dip is a temporary blip or the opening chapter of a longer stretch in which the EV division's growth cannot compensate for eroding smartphone margins.
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