Huawei reports modest 2.2 percent revenue growth as cloud weakness offsets gains in AI and automotive segments
Huawei Technologies reported a sharp slowdown in annual revenue growth for 2025, highlighting shifting dynamics across its core business segments as the company continues to navigate global restrictions and intensifying domestic competition. Total revenue reached 880.9 billion yuan, marking a 2.2 percent increase from the previous year and significantly lower than the strong growth recorded in 2024. Despite the slowdown, the figure represents one of the company’s highest annual revenues on record, supported by steady performance in telecommunications infrastructure and consumer devices.
Growth across Huawei’s core divisions remained modest, with its information and communication technology infrastructure business posting a 2.6 percent increase in revenue, while its consumer segment, including smartphones and digital devices, rose 1.6 percent. These gains reflect a gradual stabilization following earlier declines linked to external restrictions that limited access to advanced chips and software ecosystems. The company has since rebuilt parts of its hardware and software stack, allowing it to sustain growth, though at a slower pace as market conditions become more competitive and demand patterns shift.
One of the key areas of concern was Huawei’s cloud computing business, which recorded a 3.5 percent decline in revenue, underscoring rising competition within China’s rapidly expanding cloud market. At the same time, the company’s intelligent automotive solutions unit emerged as a major growth driver, with revenue surging more than 70 percent as partnerships with traditional automakers expanded. This divergence reflects Huawei’s evolving strategy of balancing mature segments with high growth areas tied to artificial intelligence, smart mobility and enterprise solutions.
Huawei continues to invest heavily in research and development as it works to strengthen its technological independence and compete in advanced computing markets. R&D spending rose to 192.3 billion yuan, accounting for approximately 22 percent of annual revenue, with a focus on chips, software ecosystems and manufacturing tools. The company is also expanding its developer base, with millions of developers now working across its Ascend AI and Kunpeng computing platforms, reinforcing its ambition to build a competitive domestic ecosystem capable of supporting large scale AI workloads.
Recent developments in Huawei’s AI computing portfolio highlight its push to capture opportunities in next generation infrastructure. Its latest Ascend chips have been tested by major Chinese technology firms, while its SuperPod AI computing system is gaining traction across sectors including finance and telecommunications. As demand for artificial intelligence continues to grow, Huawei is positioning its computing business as a central pillar of future expansion, even as broader revenue growth moderates amid ongoing uncertainty and structural shifts in the global technology landscape.
