Hesai Group reported strong financial performance for Q1 2026, with a 30% year-over-year revenue increase to RMB 681 million ($99 million). However, earnings per share (EPS) of $0.11 missed expectations, causing an 8% stock price drop during market hours.
Despite the earnings miss, the company continues to demonstrate sustained growth and profitability, marking its eighth consecutive quarter of year-over-year revenue growth.
Hesai's core LiDAR business remains robust, driven by strong demand. The company is also investing in new initiatives in physical AI, including Kosmo and robotic actuation modules.
Analysts questioned the strategy for improving EPS and managing rising operating expenses. Management remains confident that strategic investments will drive future profitability.
