Xiaomi reported a strong set of results for the third quarter of 2025, delivering a sharp rise in profitability and continued momentum across its major business segments. The group’s adjusted net profit rose 80.9 percent year on year to RMB11.3 billion, significantly above market expectations and the highest in its history. Revenue for the quarter reached RMB113.1 billion, an increase of 22.3 percent, marking the fourth consecutive quarter in which Xiaomi crossed the RMB100 billion threshold.
For the first nine months of the year, Xiaomi recorded revenue of RMB340.4 billion, close to its full-year result in 2024. Adjusted net profit for the same period reached RMB32.8 billion, already surpassing last year’s total.
The company attributed the strong quarter to the continued execution of its “Human × Car × Home” strategy, which aims to link personal devices, connected homes and mobility products under a unified ecosystem. All major divisions delivered positive results, with particularly strong performance from new initiatives in smart electric vehicles and artificial intelligence.
EV operations turn profitable as deliveries exceed 100,000 units
Xiaomi’s smart electric vehicle, AI and new initiatives segment recorded a major milestone in the quarter, reporting positive operating income of RMB0.7 billion for the first time. Revenue from this segment rose to RMB29.0 billion, an increase of more than 199 percent compared with the same period last year.
Smart EV deliveries also reached new highs. Quarterly deliveries exceeded 100,000 units for the first time, reaching 108,796 vehicles. Cumulative deliveries for the first three quarters totalled more than 260,000 vehicles. Xiaomi continued expanding its physical footprint, operating 402 smart EV sales centres across 119 cities in the Chinese Mainland as of 30 September.
The company said demand remained strong for the Xiaomi YU7, its high-performance luxury SUV. The model ranked first in sales among mid-to-large SUVs for three consecutive months and became the best-selling SUV across all categories in the Chinese Mainland in October.
Smartphone and IoT divisions sustain steady performance
Xiaomi’s smartphone business generated RMB46.0 billion in revenue during the quarter. Shipments reached 43.3 million units, marking nine consecutive quarters of year-on-year growth. Market data from Omdia placed Xiaomi’s global market share at 13.6 percent, maintaining its position among the top three smartphone brands worldwide for the 21st quarter in a row. In the Chinese Mainland, Xiaomi ranked second by units sold, with a market share of 16.7 percent.
The company reported further gains in the premium smartphone segment. Its market share for devices priced between RMB4,000 and RMB6,000 rose to 18.9 percent, an increase of 5.6 percentage points year on year. Sales of the Xiaomi 17 Series, launched in September, were around 30 percent higher in the first month compared with the Xiaomi 15 Series a year earlier. The Xiaomi 17 Pro and Xiaomi 17 Pro Max accounted for more than 80 percent of sales.
The IoT and lifestyle products division grew steadily with revenue of RMB27.6 billion, a rise of 5.6 percent year on year. Gross profit margin increased to 23.9 percent. In October, Xiaomi began operations at its first smart home appliance factory, which has an annual peak capacity of seven million air conditioners and supports the company’s push into premium home appliances.
As of 30 September, there were 1.035 billion connected IoT devices on Xiaomi’s AIoT platform, excluding smartphones, tablets and laptops. The number of users with at least five connected devices reached 21.6 million, an increase of 26.1 percent year on year. Monthly active users of the Xiaomi Home App rose to 114.6 million in September, up 14.4 percent.
The company also reported strong progress in wearables and audio products. Xiaomi’s tablet shipments ranked in the top five globally, while its wearable band devices ranked first globally and second in the Chinese Mainland. TWS earbud shipments placed the company second worldwide and first in the Chinese Mainland.
Internet services and R&D investment reach record levels
Xiaomi’s internet services business delivered revenue of RMB9.4 billion, an increase of 10.8 percent year on year. The segment’s gross profit margin remained high at 76.9 percent. Overseas internet services revenue reached RMB3.3 billion, up 19.1 percent.
The group’s global monthly active user base grew strongly. Global MAU reached 741.7 million in September, an increase of 8.2 percent year on year. In the Chinese Mainland, MAU rose to 187.3 million, up 11.6 percent.
During the quarter, Xiaomi set a new record for research and development spending, investing RMB9.1 billion, a year-on-year increase of 52.1 percent. Total R&D spending for the first three quarters reached RMB23.5 billion, and the company expects full-year R&D investment to exceed RMB30.0 billion. Its R&D workforce reached 24,871 employees, the highest in its history.
The company also highlighted progress in large-model AI development. In September, it introduced Xiaomi-MiMo-Audio, an open-source voice model that strengthens its multi-modal AI capabilities. In November, it unveiled Xiaomi Miloco, a concept for future smart home living powered by AI technologies. Xiaomi also launched HyperOS 3, its latest operating system with updates to core functionality and AI performance. The combination of HyperOS, the new AI models and the start of operations at its smart home appliance factory forms what Xiaomi described as a complete smart manufacturing ecosystem spanning smartphones, EVs and smart home products.
