The main story of this Q2 earnings report is clear: the laser radar business is still ramping up in volume; the robot business’s shipment growth is even faster; and SGI has finally begun to generate revenue. However, the growth in both revenue and shipments has not yet translated into stronger operating profits. What the market will look at next is not only “how many units were sold,” but also whether the gross margin can hold up after changes in product mix.
First, look at the core data
In Q2 2026, Hesai’s revenue was RMB 861 million, up 21.9% year over year; of this, product revenue was RMB 860 million, up 22.9%. Net profit was RMB 70.6 million, up 60.0%; Non-GAAP net profit was RMB 101 million, up 38.3%. The company has achieved GAAP profitability for the fifth consecutive quarter, and scaling delivery in its core business remains the foundation of performance.
Shipment growth is still the strongest signal
This quarter, total LiDAR shipments reached 628,300 units, up 78.4% year over year. Of this, ADAS LiDAR shipments were 485,900 units, up 60.1%; and robotics LiDAR shipments were 142,400 units, up 193.4%. The robotics business has a relatively low base, but its growth rate is already clearly faster than the automotive business. This suggests Hesai’s growth is shifting from a single intelligent-driving use case toward a broader range of robot perception scenarios.
Profit quality shouldn’t be judged by net profit alone
Revenue and shipment performance are strong, but what deserves more attention on the income statement is the pressure on the operating side. In Q2, the gross margin was 40.1%, down from 42.5% in the same period last year; operating profit was only RMB 2.2 million, down 90.4% year over year; and Non-GAAP operating profit was RMB 33 million, down 36.7% year over year. The company explains that the gross margin decline is mainly due to an increased share of revenue from lower-margin products, along with R&D expenses rising by 16.0% year over year to RMB 231 million. Therefore, this earnings report should not be simply understood as “revenue growth with profit improving in tandem.” A more accurate description is: the scale continues to expand, but the product mix and investment in new businesses are weighing on operating leverage.
SGI is starting to move from narrative to revenue
SGI is the key added highlight this quarter. This quarter, the robotics actuator module began contributing revenue; and the spatial intelligence platform Kosmo is expected to generate initial revenue starting from Q3. Management raised its 2026 SGI revenue guidance from RMB 100 million to RMB 200 million–300 million, reflecting expectations that commercialization is progressing faster.
But we also need to distinguish facts from expectations here: SGI already has its first revenue—this is a fact. The full-year RMB 200 million to RMB 300 million is still company guidance, not already confirmed performance. Whether the new business can move from early orders to stable revenue, and improve rather than continue to weigh on margins, still needs validation in subsequent quarters.
Next quarter, focus on three things
The company’s Q3 revenue guidance is RMB 1.10 billion to RMB 1.15 billion, implying year-over-year growth of about 38% to 45%. If this guidance is met, it indicates that shipment and revenue expansion will continue. But more importantly, we need to see whether gross margin can recover, whether SGI’s revenue contribution can expand, and whether operating profit can improve alongside scale growth. For Hesai, automotive LiDAR is the current cash flow and scale foundation. Robotics and SGI will determine the potential for future growth, but they cannot be treated as the same level of maturity.
In one sentence: Hesai’s Q2 highlights are strong shipment growth and the ramp-up of its robotics business, while the risks are pressure on gross margin and operating profit. The Q3 revenue guidance has been raised; next, we need to see whether growth in scale can truly translate into better profit quality.
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