China's Huawei Technologies reported on Tuesday 2.2% growth in 2025 revenue, as its core businesses of infrastructure network and consumer devices reported modest growth, while its cloud computing operation saw a revenue decline.

 

The Shenzhen-based company posted 2025 sales revenue of 880.9 billion yuan ($127.5 billion), up 2.2% from a year earlier, marking a sharp slowdown from 22.4% growth recorded in 2024.

 

The 2025 result marks Huawei's second-highest annual revenue, trailing a record 891 billion yuan sales achieved in 2020.

 

Huawei's smartphone ⁠business had suffered ⁠a dramatic decline after US sanctions restricted access to advanced chips and Google's Android operating system, driving its total revenue down 29% in 2021. Last year was the fourth consecutive year of growth since that trough.

 

Revenue from the consumer unit, which includes smartphones and other digital devices, ⁠rose 1.6% to 344.5 billion yuan, while its information and communication technology infrastructure segment — the largest revenue contributor — posted 2.6% growth in sales to 375 billion yuan, Huawei said in a statement.

 

Huawei said over 36 million devices ran on its homegrown HarmonyOS by the end of last year, Reuters reported.

 

Its smaller yet important cloud computing business reported a 3.5% drop in revenue, while intelligent automotive solutions unit, which helps traditional automakers develop smart vehicles, saw a revenue surge of ⁠72.1% to ⁠45 billion yuan.

 

Huawei continued to allocate significant resources to research and development to mitigate the effects of ongoing US sanctions.

 

R&D spending surged to 192.3 billion yuan in 2025, representing 22% of its annual revenue, as the company invested heavily in software, chips and manufacturing tools to reduce reliance on restricted US technology.

 

In a statement, chairwoman Meng Wanzhou, daughter of Huawei founder Ren Zhengfei, said the company is navigating a future "full of uncertainty," and pledged that Huawei would continue cultivating its developer ecosystem.