Xiaomi Q2 2026 results: Smart EV and AI business posts RMB 24.9 billion in revenue

Xiaomi reported another strong quarter on 18 August, with revenue reaching RMB 108.9 billion (~RM 68.6 billion) and adjusted net profit rising to RMB 6.2 billion (~RM 3.9 billion).

For the automotive industry, however, the more closely watched figure came from Xiaomi EV, Xiaomi AI and Other New Initiatives segment, which generated RMB 24.9 billion (~RM 15.7 billion) in revenue during the second quarter.

Xiaomi Auto gains momentum

Xiaomi delivered 104,199 vehicles in the second quarter, up 28.2% from a year earlier. The figure marks another quarter of growth for the car business as Xiaomi expands its line-up beyond the SU7 and YU7.

The Xiaomi SU7 remained one of the stronger performers in China's electric sedan market, ranking among the top three best-selling pure-electric sedans priced above RMB 200,000 (~RM 126,000).

During the quarter, Xiaomi also unveiled its new Kunlun Architecture. The company has since opened pre-sales for the SkyNomad N90 Max and N70 Max, giving its automotive business a second product line focused on range-extender SUVs.

The SkyNomad N90 Max is a flagship seven-seat range-extender SUV with a claimed CLTC combined range of up to 1,705 km. It starts at RMB 299,900 (~RM 189,000) in China.

The five-seat SkyNomad N70 Max AWD range-extender SUV is priced from RMB 259,900 (~RM 164,000), giving Xiaomi a second model aimed at the growing range-extender SUV segment.

On the track, the Xiaomi YU7 GT with the Track Package posted a 7:22.755 lap at the Nürburgring, making it the fastest SUV around the circuit at the time.

Xiaomi also used the YU7 GT to complete what it described as the world's first autonomous Nürburgring lap test, putting the focus as much on its driver-assistance technology as on outright performance.

Stronger performance beyond cars

Xiaomi's smartphone business generated RMB 42.1 billion (~RM 26.5 billion) in revenue during the quarter.

Shipments remained among the world's top three for the 24th consecutive quarter. Xiaomi also ranked among the top three smartphone brands by shipments in 53 countries and regions.

The company's smartphone average selling price (ASP) rose 25.9% year on year. In China, models priced above RMB 3,000 (~RM 1,890) accounted for 32.1% of total smartphone sales, the highest share on record.

Xiaomi's IoT business also continued to grow, generating RMB 31.3 billion (~RM 19.7 billion) in revenue. By the end of the quarter, the company's AIoT platform had connected 1.16 billion IoT devices, up 17.4% year on year.

Xiaomi's tablet shipments ranked among the global top five for the ninth consecutive quarter, while its TWS earphones remained No. 2 worldwide.

Its internet services business contributed another RMB 9 billion (~RM 5.7 billion) in revenue, with gross margin rising to 76.8%. Overseas internet revenue continued to account for a larger share of the business, while global monthly active users reached a record 767 million.

R&D spending and AI push

Xiaomi spent RMB 9.2 billion (~RM 5.8 billion) on research and development in the second quarter, up 18.9% year on year. R&D spending for the first half of 2026 reached RMB 18.2 billion (~RM 11.5 billion).

On the AI front, Xiaomi MiMo-V2.5 topped both the weekly and monthly global rankings for model usage on OpenRouter, highlighting Xiaomi's growing focus on its own AI models.

The company also released the Xiaomi HyperOS 4 Beta, featuring Super XiaoAI 2.0. The updated system brings together personal preferences, cross-device collaboration and task planning and execution as part of a more integrated AI experience.

Xiaomi is also developing AI models for robotics.

Its Xiaomi-Robotics-1 foundation model was trained on more than 100,000 hours of real-world manipulation data and ranked No. 1 on platforms including RobotCasa365.

The model has also been tested in real-world tasks at Xiaomi's EV factory, where it achieved a high task-success rate.

What's next for Xiaomi

Xiaomi's second-quarter results show how quickly its automotive business is becoming an increasingly important part of the group.

With the SU7 and YU7 already established and the new SkyNomad range-extender SUVs expanding the line-up, Xiaomi now has a broader base from which to grow its car business.

At the same time, its continued investment in AI is bringing its automotive, smartphone and IoT businesses closer together, reinforcing Xiaomi's wider "Human × Car × Home" ecosystem.

For buyers in Malaysia and other overseas markets, the bigger question now is how quickly Xiaomi can bring more of these products and technologies to international markets.