Hesai Group (NASDAQ:HSAI) shares fell 6.09% in pre-market trading on Tuesday even after the 3D perception technology company reported second-quarter revenue growth of more than 20% and extended its run of GAAP profitability.
Revenue for the quarter ended June 30, 2026 reached RMB860.8 million ($126.9 million), up 21.9% from RMB706.4 million in the same period last year.
Hesai reported adjusted earnings per share of RMB0.08 ($0.01), while net income increased 60% year on year to RMB70.6 million ($10.4 million). The result marked the company’s fifth consecutive quarter of GAAP profitability.
Lidar Shipments Accelerate Across ADAS and Robotics
Hesai shipped 628,275 lidar units during the second quarter, supported by substantial growth across both its automotive and robotics operations.
ADAS lidar shipments increased 60% year on year to 485,904 units, while robotics lidar volumes surged 193% to 142,371 units.
The rapid expansion in shipments helped drive overall revenue growth, although a greater contribution from lower-margin products put some pressure on profitability.
Gross margin declined to 40.1% from 42.5% in the corresponding period of 2025, primarily reflecting the changing product mix.
“The second quarter of 2026 marked a defining milestone as Hesai has evolved into a full-stack infrastructure platform for Robotics and Physical AI — empowering them to see, understand, and act,” said Dr. Yifan “David” Li, Hesai’s Co-Founder and CEO.
Hesai Raises Strategic Growth Initiatives Forecast
Alongside its quarterly results, Hesai significantly increased its full-year 2026 revenue guidance for its Strategic Growth Initiatives, or SGI.
The company now expects SGI revenue of between RMB200 million and RMB300 million, up from its previous forecast of RMB100 million. The new midpoint of RMB250 million represents a 150% increase from the earlier outlook.
CFO Andrew Fan said the business is expected to generate approximately $100 million in revenue during 2027 and reach breakeven in the same year.
The upgraded forecast highlights Hesai’s expectations for accelerating commercial demand beyond its established lidar operations.
Q3 Revenue Expected to Grow as Much as 45%
Hesai also issued a strong revenue outlook for the third quarter of 2026.
The company expects net revenue of between RMB1.10 billion ($162 million) and RMB1.15 billion ($169 million), representing year-on-year growth of approximately 38% to 45%.
At the midpoint of RMB1.125 billion, quarterly revenue would increase approximately 41.5% from the corresponding period last year.
Despite the strong shipment growth, higher net income and upgraded SGI outlook, investors responded negatively following the announcement, sending Hesai Group (NASDAQ:HSAI) shares more than 6% lower in pre-market trading.
Hesai Group stock price
