Midea stock: Q3 profit gains mask pressure on core demand

Midea stock faces a new earnings-quality test after a November 8 analysis highlighted weaker domestic demand, mixed segment trends and lower medium-term forecasts. The analysis was published by Futunn.

Profit growth masks mixed trends

Midea reported third-quarter revenue of RMB 107.32 billion, down 4.1 percent year over year. Net profit attributable to owners rose 25.9 percent to RMB 14.95 billion, while non-GAAP net profit fell 15.7 percent to RMB 9.19 billion.

The analysis attributed the gap partly to changes in the fair value of financial assets and gains on disposals. Foreign-exchange losses also weighed on recurring profit and related hedging gains were treated as non-recurring. Gross margin declined by 0.5 percentage points to 26.0 percent.

Industrial units offset domestic pressure

Building Technologies generated RMB 30.9 billion of third-quarter revenue, up 10 percent year over year. Robotics & Automation revenue also rose 10 percent to RMB 24.9 billion, while Industrial Technologies revenue fell 13 percent.

The combination leaves overseas operations, building technology and robotics as important supports while domestic appliance demand remains under pressure. Midea's next operating test is whether those businesses can sustain growth as the company adjusts its domestic air-conditioning distribution model.

Forecast cuts raise the bar

Huachuang Securities lowered its EPS forecasts for 2026, 2027 and 2028 to RMB 6.21, RMB 6.32 and RMB 6.75, from RMB 6.26, RMB 6.66 and RMB 7.25. The research house retained an Outperform rating but reduced its DCF-based target price to RMB 105.

Midea stock traded at 11.92 euros on Lang & Schwarz at 15:29 CET on Friday, November 13, 2026.

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More news and analyses on Midea stock cover the company's earnings, dividend timetable and operating outlook.