XPeng Achieves First Quarterly Profit Amid AI Focus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy XPEV?
Source: seekingalpha
- First Quarterly Profit: XPeng (XPEV) achieved its first-ever quarterly profit in the latest earnings report, driven by sales of higher-margin models, marking a significant milestone that boosts investor confidence in the company's growth trajectory.
- Analyst Ratings Maintained: Nomura maintained a Buy rating on XPeng following the earnings report, with analysts highlighting the company's reasonable business plan and strong product pipeline, which are expected to support its positioning in the 2026 auto market and indicate long-term growth potential.
- Market Expectations Adjusted: While Nomura lowered FY26-27 shipment estimates for XPeng, the firm's price target of $23 still implies over 30% upside, reflecting a positive outlook on the company's future despite current market challenges.
- Robotaxi Plans: XPeng is targeting the launch of commercial robotaxi operations by 2027 and is considering strategic partnerships for overseas expansion, which could create new revenue streams and enhance its competitive edge in the evolving EV landscape.
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Analyst Views on XPEV
Wall Street analysts forecast XPEV stock price to rise
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 17.610
Low
20.00
Averages
29.67
High
50.00
Current: 17.610
Low
20.00
Averages
29.67
High
50.00
About XPEV
XPeng Inc is a holding company mainly engaged in the design, development, manufacturing and marketing of smart electrical vehicles (EVs). The Company develops full-stack advanced driver assistance systems (ADAS) software in house and has deployed such software on mass-produced vehicles. The Company offers various models, including G9 (mid- to large-sized sport utility vehicle (SUV), P7i (sports sedan), G6 (coupe SUV), X9 (seven-seater multi-purpose vehicle (MPV)), MONA M03 (sedan) and P7+ (family sedan). The Company operates stores across China, including both stores directly operated by the Company and franchised stores. The Company also offers technical research and development services, services embedded in a sales contract, maintenance service, supercharging service.
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.
XPeng Achieves First Quarterly Profit Amid AI Focus
- First Quarterly Profit: XPeng (XPEV) achieved its first-ever quarterly profit in the latest earnings report, driven by sales of higher-margin models, marking a significant milestone that boosts investor confidence in the company's growth trajectory.
- Analyst Ratings Maintained: Nomura maintained a Buy rating on XPeng following the earnings report, with analysts highlighting the company's reasonable business plan and strong product pipeline, which are expected to support its positioning in the 2026 auto market and indicate long-term growth potential.
- Market Expectations Adjusted: While Nomura lowered FY26-27 shipment estimates for XPeng, the firm's price target of $23 still implies over 30% upside, reflecting a positive outlook on the company's future despite current market challenges.
- Robotaxi Plans: XPeng is targeting the launch of commercial robotaxi operations by 2027 and is considering strategic partnerships for overseas expansion, which could create new revenue streams and enhance its competitive edge in the evolving EV landscape.
See More
XPENG SHARES IN HONG KONG FALL BY 5%
- Market Performance: Hong Kong shares of XPeng have decreased by 5%.
- Company Overview: XPeng is a Chinese electric vehicle manufacturer.
- Investor Sentiment: The decline in share price may reflect broader market trends or investor concerns.
- Future Outlook: Analysts will be monitoring XPeng's performance and market conditions for potential recovery.
See More
Consumer Stocks Decline Late Friday Afternoon
- Weak Consumer Stock Performance: Consumer stocks broadly declined on Friday afternoon, reflecting market concerns over economic outlook, particularly amid rising inflation and interest rates, which negatively impacted investor sentiment.
- Market Reaction: The poor performance of the State Street Consumer Staples Select Sector SPDR indicates a weakening confidence in the consumer goods sector as investors grapple with uncertainties regarding future consumer spending.
- Industry Impact: The decline in the consumer goods sector may affect earnings expectations for related companies, especially as economic slowdowns could lead to increased sales pressure for businesses.
- Investor Strategy Adjustment: In light of the weak performance of consumer stocks, investors may reassess their portfolios and shift towards more defensive assets to mitigate potential market volatility.
See More
NASDAQ 100 Pre-Market Overview
- Market Indicator Decline: The NASDAQ 100 Pre-Market Indicator fell by 111.07 points to 24,244.21, indicating weakened market sentiment that could impact investor confidence and lead to further selling pressure.
- Active Stock Performance: Super Micro Computer, Inc. (SMCI) saw a decline of $7.58 with a trading volume of 21,757,834 shares, currently priced at 58.03% of its target price, reflecting market concerns about its future performance.
- ETF Trading Dynamics: ProShares UltraPro QQQ (TQQQ) dropped by $0.45 with a volume of 7,670,675 shares, representing a 158.51% increase from its 52-week low, indicating strong investor interest in tech stocks.
- Recommendation Ratings: Planet Labs PBC (PL) rose by $5.21 with a trading volume of 1,442,259 shares, with Zacks reporting its current mean recommendation in the 'buy range', suggesting optimistic market expectations for its future growth.
See More
XPeng Reports Q4 2025 Earnings Highlights
- Earnings Beat: XPeng's Q4 2025 non-GAAP EPS of $0.07 exceeded expectations by $0.08, indicating improved profitability despite overall revenue falling short of forecasts.
- Significant Revenue Growth: Total revenue for Q4 reached RMB 22.25 billion (approximately $3.18 billion), marking a 38.2% year-over-year increase and a 9.2% quarter-over-quarter rise, reflecting strong performance in the EV market despite missing market expectations.
- Sales Network Expansion: As of December 31, 2025, XPeng operated 721 stores across 255 cities, enhancing market coverage and brand influence, which is crucial for future sales growth.
- Charging Infrastructure Development: The XPeng self-operated charging station network has reached 3,159 stations, including 2,108 ultra-fast charging stations, demonstrating the company's ongoing investment in charging facilities to improve user experience and convenience.
See More
XPeng Reports 2025 Financial Results: Significant Delivery Growth
- Delivery Growth: XPeng delivered a total of 429,445 vehicles in 2025, marking a 125.9% year-over-year increase, which not only enhances market share but also strengthens the brand's competitive position in the smart EV sector.
- Strong Financial Performance: Total revenues for Q4 2025 reached RMB 22.25 billion (approximately USD 3.18 billion), representing a 38.2% increase from the same period in 2024, indicating robust performance in both sales and service revenues.
- Record Gross Margin: XPeng's gross margin hit 21.3% in Q4 2025, up 6.9 percentage points year-over-year, reflecting successful strategies in cost control and product mix optimization.
- Robust Cash Reserves: As of the end of 2025, XPeng's cash and cash equivalents stood at RMB 47.66 billion (approximately USD 6.81 billion), providing a solid foundation for ongoing investments in Physical AI R&D.
See More
XPeng Achieves First Quarterly Profit Amid AI Focus
- First Quarterly Profit: XPeng (XPEV) achieved its first-ever quarterly profit in the latest earnings report, driven by sales of higher-margin models, marking a significant milestone that boosts investor confidence in the company's growth trajectory.
- Analyst Ratings Maintained: Nomura maintained a Buy rating on XPeng following the earnings report, with analysts highlighting the company's reasonable business plan and strong product pipeline, which are expected to support its positioning in the 2026 auto market and indicate long-term growth potential.
- Market Expectations Adjusted: While Nomura lowered FY26-27 shipment estimates for XPeng, the firm's price target of $23 still implies over 30% upside, reflecting a positive outlook on the company's future despite current market challenges.
- Robotaxi Plans: XPeng is targeting the launch of commercial robotaxi operations by 2027 and is considering strategic partnerships for overseas expansion, which could create new revenue streams and enhance its competitive edge in the evolving EV landscape.
See More
XPENG SHARES IN HONG KONG FALL BY 5%
- Market Performance: Hong Kong shares of XPeng have decreased by 5%.
- Company Overview: XPeng is a Chinese electric vehicle manufacturer.
- Investor Sentiment: The decline in share price may reflect broader market trends or investor concerns.
- Future Outlook: Analysts will be monitoring XPeng's performance and market conditions for potential recovery.
See More
Consumer Stocks Decline Late Friday Afternoon
- Weak Consumer Stock Performance: Consumer stocks broadly declined on Friday afternoon, reflecting market concerns over economic outlook, particularly amid rising inflation and interest rates, which negatively impacted investor sentiment.
- Market Reaction: The poor performance of the State Street Consumer Staples Select Sector SPDR indicates a weakening confidence in the consumer goods sector as investors grapple with uncertainties regarding future consumer spending.
- Industry Impact: The decline in the consumer goods sector may affect earnings expectations for related companies, especially as economic slowdowns could lead to increased sales pressure for businesses.
- Investor Strategy Adjustment: In light of the weak performance of consumer stocks, investors may reassess their portfolios and shift towards more defensive assets to mitigate potential market volatility.
See More
NASDAQ 100 Pre-Market Overview
- Market Indicator Decline: The NASDAQ 100 Pre-Market Indicator fell by 111.07 points to 24,244.21, indicating weakened market sentiment that could impact investor confidence and lead to further selling pressure.
- Active Stock Performance: Super Micro Computer, Inc. (SMCI) saw a decline of $7.58 with a trading volume of 21,757,834 shares, currently priced at 58.03% of its target price, reflecting market concerns about its future performance.
- ETF Trading Dynamics: ProShares UltraPro QQQ (TQQQ) dropped by $0.45 with a volume of 7,670,675 shares, representing a 158.51% increase from its 52-week low, indicating strong investor interest in tech stocks.
- Recommendation Ratings: Planet Labs PBC (PL) rose by $5.21 with a trading volume of 1,442,259 shares, with Zacks reporting its current mean recommendation in the 'buy range', suggesting optimistic market expectations for its future growth.
See More
XPeng Reports Q4 2025 Earnings Highlights
- Earnings Beat: XPeng's Q4 2025 non-GAAP EPS of $0.07 exceeded expectations by $0.08, indicating improved profitability despite overall revenue falling short of forecasts.
- Significant Revenue Growth: Total revenue for Q4 reached RMB 22.25 billion (approximately $3.18 billion), marking a 38.2% year-over-year increase and a 9.2% quarter-over-quarter rise, reflecting strong performance in the EV market despite missing market expectations.
- Sales Network Expansion: As of December 31, 2025, XPeng operated 721 stores across 255 cities, enhancing market coverage and brand influence, which is crucial for future sales growth.
- Charging Infrastructure Development: The XPeng self-operated charging station network has reached 3,159 stations, including 2,108 ultra-fast charging stations, demonstrating the company's ongoing investment in charging facilities to improve user experience and convenience.
See More
XPeng Reports 2025 Financial Results: Significant Delivery Growth
- Delivery Growth: XPeng delivered a total of 429,445 vehicles in 2025, marking a 125.9% year-over-year increase, which not only enhances market share but also strengthens the brand's competitive position in the smart EV sector.
- Strong Financial Performance: Total revenues for Q4 2025 reached RMB 22.25 billion (approximately USD 3.18 billion), representing a 38.2% increase from the same period in 2024, indicating robust performance in both sales and service revenues.
- Record Gross Margin: XPeng's gross margin hit 21.3% in Q4 2025, up 6.9 percentage points year-over-year, reflecting successful strategies in cost control and product mix optimization.
- Robust Cash Reserves: As of the end of 2025, XPeng's cash and cash equivalents stood at RMB 47.66 billion (approximately USD 6.81 billion), providing a solid foundation for ongoing investments in Physical AI R&D.
See More
