China Mobile's Profit Drops 7.9% Amidst Slowing Revenue

China Mobile’s profit attributable to equity shareholders decreased by 7.9% year-on-year to RMB106.2 billion in the first three quarters of 2026, signaling growing financial pressure on the telecom giant. The decline accompanies a 1.8% decrease in operating revenue to RMB780.3 billion over the same period, according to a filing with the Hong Kong Exchange (HKEX) on October 20th.

While the company demonstrated subscriber growth – adding 8.89 million mobile customers and 13.05 million integrated broadband network customers – this expansion was insufficient to offset the revenue and profit declines. The margin of profit attributable to equity shareholders also contracted to 13.6%, down from 15.4% in the same period last year. EBITDA decreased by 6.7% year-on-year to RMB247.5 billion, with EBITDA as a percentage of principal business revenue at 37.6%.

The results arrive amid a challenging macroeconomic environment in China, marked by slowing economic growth and concerns about rising youth unemployment. Recent state interventions, including over $122 billion in capital injections into state banks and insurers, suggest government anxieties about financial stability, which could indirectly affect lending conditions for companies like China Mobile. The broader smartphone market is also showing signs of saturation, as indicated by recent performance from companies like Samsung, adding to the headwinds.

China Mobile’s financial performance reflects these broader pressures, with declining revenue from principal businesses – down 3.7% year-on-year – only partially offset by growth in other businesses. While the company continues to invest in its “network-based full-stack innovation” strategy, the declining profitability underscores the difficulty of maintaining margins in a slowing economy and increasingly competitive market. The company’s efforts to transition to a technology services enterprise will be closely watched in the coming quarters.

The reported decrease in profit and revenue, coupled with a contraction in profitability margins, paints a picture of moderating financial momentum for China Mobile. The company’s ability to navigate a weakening consumer demand environment and maintain its market position will be crucial in the near to medium term, as the broader Chinese economy faces significant headwinds.