Hesai Group said second-quarter revenue rose 22% year-over-year to RMB 861 million ($127 million), marking its ninth consecutive quarter of growth, but its U.S.-listed shares fell 10.35% to $16.20 in premarket trading.
GAAP net income climbed 60% to RMB 71 million ($10 million), extending the company’s streak of quarterly profitability to five periods, while non-GAAP net income reached RMB 101 million ($15 million). Gross margin remained stable at 40%, though operating expenses rose as the company scaled its research and development and strategic initiatives.
The core LiDAR business generated RMB 816 million ($120 million) in revenue, up from RMB 670 million a year earlier, with operating profit of RMB 66 million ($10 million). Total LiDAR shipments surged nearly 80% to 628,000 units, including a 60% increase in ADAS LiDAR to 485,000 units and a 193% jump in robotics LiDAR to 142,000 units. The company attributed growth to design wins with automakers such as Great Wall Motor, Changan Automobile, Li Auto, Mercedes-Benz, Volkswagen, and GAC Toyota.
Hesai’s new Strategic Growth Initiatives segment contributed RMB 45 million ($7 million) in its first revenue period, driven by early demand for robotic actuation modules. The segment posted an operating loss of RMB 64 million as it scaled production ahead of expected break-even in 2027. Management raised full-year 2026 SGI revenue guidance to RMB 200 million–300 million, up from a prior range of RMB 100 million, and projected 2027 revenue of approximately $100 million.
The company highlighted technical milestones, including the launch of its Picasso 6D SPAD SoC in April 2026, which integrates depth and color sensing on a single chip, and the COSMO spatial intelligence platform, which reconstructs a 200-square-meter space at five times the efficiency of leading alternatives. Prototypes of the COSMO-powered actuation modules shipped in July 2026, with cumulative shipments exceeding 10,000 units by the end of Q2. Full-body module production is slated for the second half of 2026, with six-figure annual volumes targeted for 2027.
Hesai’s stock has declined 34% over the past six months, despite analyst price targets ranging from $25 to $36 and a consensus rating of strong buy. The company’s executives emphasized progress in robotics and embodied AI partnerships, including deployments with Sharpa at a Shanghai Dairy Queen and collaborations with Unitree, Robiant, and NVIDIA.
