en.Wedoany.com Reported - ZTE released its first-quarter financial report for 2026 on April 27. During the reporting period, the company achieved operating revenue of 34.99 billion yuan, a year-on-year increase of 6.1%. Growth in computing business, home and personal terminals, as well as international markets, offset the decline in capital expenditure on China's operator networks. Net profit attributable to shareholders was 13.1 billion yuan.
The change in the company's revenue structure is a key signal from this earnings report. Revenue from the computing business accounted for 27% of total revenue, compared to approximately 15% several years ago. The sustained volume growth of servers, storage, and AI platform products has propelled the computing business into becoming the company's second-largest revenue source. International markets achieved double-digit growth, primarily driven by 5G network deployments, fiber broadband expansion, and rising demand for AI computing infrastructure in emerging markets such as Southeast Asia, the Middle East, and Latin America. The home and personal terminal business also continued to grow, with shipments of smart homes, 5G CPE, and mobile broadband terminals sustaining the growth trend seen in 2025.
The expansion of the AI infrastructure product line was a major topic in the earnings communication. ZTE formally disclosed a 576x800G rack switch designed for exascale-level intelligent computing clusters, intended to address the high-throughput and low-latency interconnection bottlenecks for east-west traffic in large-scale AI clusters. The company also unveiled its Scale-Across distributed computing architecture, which supports the pooled scheduling and collaborative computing of computing resources across distances of up to 300 kilometers, enabling data center nodes in different cities to logically form a unified computing cluster for scenarios such as distributed training and cross-site inference. ZTE will continue to increase investment in next-generation communication and computing technologies, covering 6G pre-research, terabit-level optical networks, 200G PON access technology, and R&D for the Wi-Fi 8 standard.
Regarding AI ecosystem deployment, ZTE disclosed that it has over 1,000 ecosystem partners and is compatible with more than 200 large language models. The company has delivered over 500 industry-specific intelligent solutions across fields such as smart cities, intelligent manufacturing, and electric power & energy. As global investment in AI infrastructure continues to expand, the coordinated upgrade of computing and network equipment has become a core competitive advantage for ZTE, distinguishing it from traditional telecommunications equipment vendors. With China's operator 5G construction entering a stable investment phase, base station deployment has slowed, placing structural pressure on network infrastructure-related revenue. The company is accelerating its strategic transformation towards "connectivity plus computing."
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