Huawei 2025 Annual Results: Revenue Growth Slows to 2.2% as AI Chip Push Faces Transition Headwinds

Huawei released its 2025 annual results on March 31/April 1, revealing a sharp deceleration in top-line growth. Revenue for full-year 2025 reached CNY 880.9 billion (~$127.6 billion), up just 2.2% year-on-year — a dramatic slowdown from 22.4% growth in 2024. Net profit rose 8.7% to CNY 68 billion (~$9.8 billion). R&D investment reached a record CNY 192.3 billion (21.8% of revenue), with the majority directed at Ascend AI chip development and enterprise AI integration. Segment highlights: Intelligent Automotive Solutions surged 72.1%, confirming Huawei's traction as a platform partner for Chinese EV makers; Enterprise business grew modestly; Cloud Computing revenue fell 3.5% to CNY 32.16 billion — the first cloud revenue decline in Huawei's history, reflecting intensified competition from Alibaba Cloud and Tencent Cloud. The slow overall growth reflects a structural reality: Huawei's consumer business (smartphones, PCs) has not fully recovered from US-sanctions-era low points despite the Kirin 9000S revival, while the Ascend AI chip business — though growing — has not yet scaled to replace billions in foregone export revenue. Analysts at Digitimes noted the result suggests AI chip ambitions have yet to drive the double-digit revenue growth seen at US AI infrastructure peers like Nvidia.