Li Auto Reports Q1 2026 Financial Results with Significant Losses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 54 minutes ago
0mins
Source: Newsfilter
- Revenue Decline: Total revenues for Q1 2026 reached RMB 23.0 billion (US$3.3 billion), representing an 11.4% decrease from RMB 25.9 billion in Q1 2025, reflecting increased market competition and changes in product mix that could impact future market share.
- Slight Delivery Growth: The company delivered 95,142 vehicles in Q1 2026, a 2.5% year-over-year increase, but still down from 109,194 vehicles in Q4 2025, indicating seasonal factors affecting sales performance.
- Significant Margin Drop: Gross profit for Q1 2026 was RMB 1.8 billion (US$262.1 million), with a gross margin of 7.9%, down from 20.5% in Q1 2025, highlighting pressures from rising material costs and declining sales prices that may affect long-term profitability.
- Widening Net Loss: The net loss for Q1 2026 reached RMB 2.3 billion (US$330.0 million), compared to a net income of RMB 646.6 million in Q1 2025, indicating challenges in cost control and market strategy that could undermine investor confidence.
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Analyst Views on LI
Wall Street analysts forecast LI stock price to rise
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 15.880
Low
15.00
Averages
20.51
High
32.00
Current: 15.880
Low
15.00
Averages
20.51
High
32.00
About LI
Li Auto Inc is a holding company primarily engaged in the design, development, manufacturing, and sales of smart electric vehicles. The Company’s main products include the Li L9, Li L8, Li L7, Li L6, and Li MEGA, encompassing six-seat sport utility vehicles (SUVs), five-seat SUVs, and multi-purpose vehicles (MPVs). The Company is also engaged in research and development activities relating to intelligent vehicle technologies, the design, development and manufacturing of various components and systems for new energy vehicles, and the provision of value-added services such as charging, vehicle maintenance and repair. The Company mainly conducts its businesses within domestic market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Li Auto Q1 Earnings Announcement Scheduled
- Earnings Release Date: Li Auto is set to announce its Q1 2023 earnings on May 28 before market open, with consensus EPS estimate at -$0.30 and revenue forecast at $3.19 billion, reflecting a 10.6% year-over-year decline, indicating challenges in the current market environment.
- Performance Expectations: Over the past two years, Li Auto has beaten EPS estimates 63% of the time but only 38% for revenue, showcasing volatility in profitability that may affect investor confidence moving forward.
- Estimate Revisions: In the last three months, there have been no upward revisions to EPS estimates and three downward revisions, while revenue estimates saw one upward and five downward revisions, suggesting a cautious market outlook for Li Auto's future performance.
- Industry Context: Amid a 40% surge in China's EV exports to 278,081 units, with shipments to Brazil skyrocketing by 221%, Li Auto faces pressure from broader sector recovery, which could impact its market share and competitive strategy.
See More
Li Auto Reports Q1 2026 Earnings Results
- Financial Performance: Li Auto reported a Q1 non-GAAP EPADS of -$0.30 with revenues of $3.3 billion, an 11.4% year-over-year decline, yet beating expectations by $110 million, indicating resilience amid market challenges.
- Delivery Data: The company delivered 95,142 vehicles in Q1 2026, a 2.5% year-over-year increase, although total vehicle sales amounted to RMB 21.5 billion ($3.1 billion), down 12.7% from the previous year, reflecting intensified market competition.
- Margin Decline: Vehicle margin fell to 6.1% in Q1, significantly lower than 19.8% in the same quarter last year and 16.8% in the previous quarter, suggesting increased cost pressures that could impact future profitability.
- Cash Flow Situation: Net cash used in operating activities was RMB 6.1 billion ($883 million) in Q1, with free cash flow at negative RMB 7.4 billion ($1.1 billion), worsening from negative RMB 2.5 billion a year ago, highlighting risks related to liquidity constraints.
See More
Li Auto Q4 Earnings Analysis and Outlook
- Earnings Performance: Li Auto reported a non-GAAP EPS of -$0.30 for Q4 2025, aligning with expectations, while its revenue of $3.3 billion exceeded market forecasts by $110 million, indicating resilience in revenue growth amidst challenging conditions.
- Market Outlook: The company's outlook for Q1 2026 has sparked interest, with specific figures yet to be disclosed; however, the market remains cautiously optimistic about its growth potential, particularly in the context of a broader sector recovery.
- Competitive Landscape: Amidst the overall recovery in the electric vehicle sector, Li Auto's performance raises questions about its competitiveness, prompting investors to monitor its ongoing efforts in technological innovation and market share expansion.
- Investment Value: Despite being perceived as undervalued, Li Auto's financial performance and future outlook may attract value investors, especially given the rapid growth of the electric vehicle market, making its long-term investment potential noteworthy.
See More
Li Auto Reports Q1 2026 Financial Results with Significant Losses
- Revenue Decline: Total revenues for Q1 2026 reached RMB 23.0 billion (US$3.3 billion), representing an 11.4% decrease from RMB 25.9 billion in Q1 2025, reflecting increased market competition and changes in product mix that could impact future market share.
- Slight Delivery Growth: The company delivered 95,142 vehicles in Q1 2026, a 2.5% year-over-year increase, but still down from 109,194 vehicles in Q4 2025, indicating seasonal factors affecting sales performance.
- Significant Margin Drop: Gross profit for Q1 2026 was RMB 1.8 billion (US$262.1 million), with a gross margin of 7.9%, down from 20.5% in Q1 2025, highlighting pressures from rising material costs and declining sales prices that may affect long-term profitability.
- Widening Net Loss: The net loss for Q1 2026 reached RMB 2.3 billion (US$330.0 million), compared to a net income of RMB 646.6 million in Q1 2025, indicating challenges in cost control and market strategy that could undermine investor confidence.
See More
Boston Scientific Faces Pressure Amid Weak Watchman Procedures
- Boston Scientific's Decline: CEO Michael Mahoney indicated that standalone Watchman procedures are weakening, leading to a 12% stock drop on Wednesday, hitting a two-year low of $50.04, which underscores the growth pressures in the medical device market.
- Li Auto's Loss Expectations: Li Auto's stock reached a 52-week low of $15.3 ahead of its earnings report, with analysts forecasting a RMB2.08 ($0.31) per-share loss, highlighting the intensified competition and price declines in China's EV market impacting profitability.
- BJ's Wholesale Earnings Outlook: BJ's Wholesale Club faced selling pressure as investors questioned its near-term earnings, with a 10-basis-point decline in merchandise margins in Q1, prompting DA Davidson to lower its price target to $105 while maintaining a 'Buy' rating, indicating challenges in the retail sector.
- Market Sentiment Shift: Despite Boston Scientific, Li Auto, and BJ's stocks hitting new 52-week lows, retail sentiment shifted from 'bearish' to 'bullish', reflecting investor expectations for potential rebounds in the near future.
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- Stock Price Surge: Nio (NIO) closed at $5.75 on Wednesday, marking a 9.32% increase, primarily driven by the launch of its flagship ES9 SUV at a lower-than-expected starting price, which has attracted investor interest.
- Trading Volume Spike: The trading volume reached 88.6 million shares, approximately 110% above the three-month average of 42.2 million shares, indicating strong market interest and investor activity surrounding Nio's new model.
- Increased Competitive Pressure: Nio priced its new ES9 SUV models about $4,000 lower than previously announced pre-sale quotes, reflecting a more competitive pricing strategy in response to intensifying competition in the electric vehicle market.
- Delivery Growth Expectations: Nio nearly doubled its delivery numbers year-over-year in Q1, and management is optimistic about strong growth in Q2, bolstering investor confidence in Nio shares, despite the analyst team not including it in their top stock picks.
See More
Li Auto Q1 Earnings Announcement Scheduled
- Earnings Release Date: Li Auto is set to announce its Q1 2023 earnings on May 28 before market open, with consensus EPS estimate at -$0.30 and revenue forecast at $3.19 billion, reflecting a 10.6% year-over-year decline, indicating challenges in the current market environment.
- Performance Expectations: Over the past two years, Li Auto has beaten EPS estimates 63% of the time but only 38% for revenue, showcasing volatility in profitability that may affect investor confidence moving forward.
- Estimate Revisions: In the last three months, there have been no upward revisions to EPS estimates and three downward revisions, while revenue estimates saw one upward and five downward revisions, suggesting a cautious market outlook for Li Auto's future performance.
- Industry Context: Amid a 40% surge in China's EV exports to 278,081 units, with shipments to Brazil skyrocketing by 221%, Li Auto faces pressure from broader sector recovery, which could impact its market share and competitive strategy.
See More
Li Auto Reports Q1 2026 Earnings Results
- Financial Performance: Li Auto reported a Q1 non-GAAP EPADS of -$0.30 with revenues of $3.3 billion, an 11.4% year-over-year decline, yet beating expectations by $110 million, indicating resilience amid market challenges.
- Delivery Data: The company delivered 95,142 vehicles in Q1 2026, a 2.5% year-over-year increase, although total vehicle sales amounted to RMB 21.5 billion ($3.1 billion), down 12.7% from the previous year, reflecting intensified market competition.
- Margin Decline: Vehicle margin fell to 6.1% in Q1, significantly lower than 19.8% in the same quarter last year and 16.8% in the previous quarter, suggesting increased cost pressures that could impact future profitability.
- Cash Flow Situation: Net cash used in operating activities was RMB 6.1 billion ($883 million) in Q1, with free cash flow at negative RMB 7.4 billion ($1.1 billion), worsening from negative RMB 2.5 billion a year ago, highlighting risks related to liquidity constraints.
See More
Li Auto Q4 Earnings Analysis and Outlook
- Earnings Performance: Li Auto reported a non-GAAP EPS of -$0.30 for Q4 2025, aligning with expectations, while its revenue of $3.3 billion exceeded market forecasts by $110 million, indicating resilience in revenue growth amidst challenging conditions.
- Market Outlook: The company's outlook for Q1 2026 has sparked interest, with specific figures yet to be disclosed; however, the market remains cautiously optimistic about its growth potential, particularly in the context of a broader sector recovery.
- Competitive Landscape: Amidst the overall recovery in the electric vehicle sector, Li Auto's performance raises questions about its competitiveness, prompting investors to monitor its ongoing efforts in technological innovation and market share expansion.
- Investment Value: Despite being perceived as undervalued, Li Auto's financial performance and future outlook may attract value investors, especially given the rapid growth of the electric vehicle market, making its long-term investment potential noteworthy.
See More
Li Auto Reports Q1 2026 Financial Results with Significant Losses
- Revenue Decline: Total revenues for Q1 2026 reached RMB 23.0 billion (US$3.3 billion), representing an 11.4% decrease from RMB 25.9 billion in Q1 2025, reflecting increased market competition and changes in product mix that could impact future market share.
- Slight Delivery Growth: The company delivered 95,142 vehicles in Q1 2026, a 2.5% year-over-year increase, but still down from 109,194 vehicles in Q4 2025, indicating seasonal factors affecting sales performance.
- Significant Margin Drop: Gross profit for Q1 2026 was RMB 1.8 billion (US$262.1 million), with a gross margin of 7.9%, down from 20.5% in Q1 2025, highlighting pressures from rising material costs and declining sales prices that may affect long-term profitability.
- Widening Net Loss: The net loss for Q1 2026 reached RMB 2.3 billion (US$330.0 million), compared to a net income of RMB 646.6 million in Q1 2025, indicating challenges in cost control and market strategy that could undermine investor confidence.
See More
Boston Scientific Faces Pressure Amid Weak Watchman Procedures
- Boston Scientific's Decline: CEO Michael Mahoney indicated that standalone Watchman procedures are weakening, leading to a 12% stock drop on Wednesday, hitting a two-year low of $50.04, which underscores the growth pressures in the medical device market.
- Li Auto's Loss Expectations: Li Auto's stock reached a 52-week low of $15.3 ahead of its earnings report, with analysts forecasting a RMB2.08 ($0.31) per-share loss, highlighting the intensified competition and price declines in China's EV market impacting profitability.
- BJ's Wholesale Earnings Outlook: BJ's Wholesale Club faced selling pressure as investors questioned its near-term earnings, with a 10-basis-point decline in merchandise margins in Q1, prompting DA Davidson to lower its price target to $105 while maintaining a 'Buy' rating, indicating challenges in the retail sector.
- Market Sentiment Shift: Despite Boston Scientific, Li Auto, and BJ's stocks hitting new 52-week lows, retail sentiment shifted from 'bearish' to 'bullish', reflecting investor expectations for potential rebounds in the near future.
See More
Nio's ES9 SUV Launches at Lower-Than-Expected Price
- Stock Price Surge: Nio (NIO) closed at $5.75 on Wednesday, marking a 9.32% increase, primarily driven by the launch of its flagship ES9 SUV at a lower-than-expected starting price, which has attracted investor interest.
- Trading Volume Spike: The trading volume reached 88.6 million shares, approximately 110% above the three-month average of 42.2 million shares, indicating strong market interest and investor activity surrounding Nio's new model.
- Increased Competitive Pressure: Nio priced its new ES9 SUV models about $4,000 lower than previously announced pre-sale quotes, reflecting a more competitive pricing strategy in response to intensifying competition in the electric vehicle market.
- Delivery Growth Expectations: Nio nearly doubled its delivery numbers year-over-year in Q1, and management is optimistic about strong growth in Q2, bolstering investor confidence in Nio shares, despite the analyst team not including it in their top stock picks.
See More
