Huawei reported a 8.7% rise in net profit to 68 billion yuan ($9.8 billion) for 2025, signaling stronger financial health amid lingering U.S. sanctions. Revenue grew 2.2% to 880.9 billion yuan, nearing the 2020 peak. The company attributes this recovery to its expanding automotive-related business, which bundles chips for networking equipment and offers Nvidia alternatives.

China's government-backed tech giant increased R&D spending 7% to 192.3 billion yuan (21.8% of revenue), focusing on advanced chip integration. This investment supports its push into automotive systems, where it competes with Western firms. The profit rebound follows years of restricted access to U.S. technology since 2019 sanctions.

The results suggest Huawei is regaining market traction despite geopolitical headwinds. Its automotive push could disrupt traditional chip suppliers, though sustained growth depends on navigating global supply chain complexities.