Hesai Group Shares Drop Despite Strong Q2 Revenue Growth
Despite reporting a strong second-quarter revenue increase of more than 20% to RMB860.8 million ($126.9 million), Hesai Group (NASDAQ:HSAI) shares fell by over 6% in pre-market trading on August 18, 2026. The company also reported a fifth consecutive quarter of GAAP profitability with net income rising 60% to RMB70.6 million ($10.4 million). Lidar shipments surged across both automotive and robotics segments, but lower-margin product contributions led to a decline in gross margin from 42.5% to 40.1% year-on-year. Hesai significantly raised its full-year revenue guidance for Strategic Growth Initiatives (SGI), projecting between RMB200 million and RMB300 million—up sharply from the previous forecast of RMB100 million. The company also expects Q3 2026 net revenue to grow by up to 45%, reaching as much as $169 million, driven by strong shipment growth in lidar units. Despite these positive financial indicators and strategic outlook improvements, the stock reacted negatively, indicating investor concerns over margin pressures or broader market sentiment.
Tickers: $HSAI
Topics: profitability revenue_growth stock_drop