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Article: ZTE’s computing revenue jumps 150% amid AI boom, but profits fall 33%

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ZTE reported a 10.4% increase in annual revenue, driven by a 150% surge in its computing business fueled by AI and data-center demand. However, the company's net profit fell by 33.3% due to weaker sales and margins in its traditional telecom equipment sector.

The profit decline was attributed to a slowdown in operator spending on network gear and a strategic shift in business structure. Despite the profit drop, ZTE is aggressively expanding its computing infrastructure, with server and data-center solution revenues growing 200% and 50%, respectively.

The main topics covered are ZTE's financial results, the contrasting performance between its high-growth computing/AI business and its declining traditional telecom segment, and the company's strategic focus on full-stack AI capabilities.

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https://www.scmp.com/tech/big-tech/article/3345799/ztes-computing-revenue-jumps-150-amid-ai-boom-profits-fall-33?utm_source=rss_feed

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Tech - South China Morning Post

Published Date

2026-03-07 07:36

Fetched Date

2026-03-07 05:30

Processed Date

2026-03-07 05:31

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Present

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Raw Extracted Content

ZTE’s computing revenue jumps 150% amid AI boom, but profits fall 33%
A boom in computing and data-centre sales helped lift revenue, but weaker demand for traditional telecom equipment weighed on profits
China’s telecom and computing equipment maker ZTE on Friday reported revenue of 134 billion yuan (US$19 billion) in 2025, up 10.4 per cent, with its computing business surging 150 per cent year on year to account for 24.6 per cent of total sales amid the computing boom.
However, net profit attributable to shareholders fell 33.3 per cent to 5.62 billion yuan, while net profit excluding non-recurring items dropped 45.5 per cent to 3.37 billion yuan, according to a post-trading earnings filing. Gross margin for the year fell 7.66 percentage points to 30.25 per cent.
Chairman Fang Rong attributed the decline to “a shift in the industry cycle combined with adjustments to the company’s business structure”, as spending on traditional telecoms network equipment by operators slowed.
Shares in Shenzhen-listed ZTE closed down 1.27 per cent at 37.4 yuan on Friday, giving the company a market value of 178.9 billion yuan, while its Hong Kong-listed shares fell about 2 per cent to HK$25.4.
The company has been pushing its computing infrastructure buildout, including its servers and storage segments as well as data-centre solutions, whose revenue jumped 200 per cent and 50 per cent, respectively.
The Shenzhen-headquartered company touts what it describes as full-stack AI capabilities, drawing on its long-standing expertise in information and communications technology alongside chip design, algorithms and system integration.