XPENG INC. (XPEV): Financial results for Q2 2026
XPENG INC. (XPEV) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 XPENG Reports Second Quarter 2026 Unaudited Financial Results • Cash position i was RMB40.48 billion (US$5.97 billion) as of June 30, 2026 • Quarterly total revenues were RMB19.74 billion, a 51.5% increase quarter-over-quarter • Quarterly gross margin was 20.7%, an i
How this was made
The 30-second read
Why it matters
The earnings show modest revenue growth but a widening net loss, suggesting short‑term pressure on the stock while margin improvements could be a positive sign.
Market read
Primary earnings release for a major Chinese EV maker; relevant for sector investors and traders focusing on EV margins.
What to watch
The announced Dogotix share purchase and upcoming robot milestones could provide future growth catalysts.
XPENG Reports Second Quarter 2026 Unaudited Financial Results
Total revenues rose 51.5% quarter-over-quarter and gross margin reached 20.7%, but vehicle sales increased only 1.0% year-over-year, deliveries increased 0.1% year-over-year, and net loss widened 179.9% year-over-year.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total deliveriesother | 103,295 | – | 0.1% |
| Total revenuesGAAP | RMB19.74 billion (US$2.91 billion) | 51.5% | 8.0% |
| Vehicle sales revenueGAAP | RMB17.05 billion (US$2.51 billion) | 55.0% | 1.0% |
| Services and others revenueGAAP | RMB2.70 billion (US$0.40 billion) | 32.6% | 93.9% |
| Cost of salesGAAP | RMB15.66 billion (US$2.31 billion) | 51.3% | 3.7% |
| Gross profitGAAP | RMB4.08 billion | 52.2% | 28.9% |
| Gross marginGAAP | 20.7% | 0.1 pts | 3.4 pts |
| Vehicle marginGAAP | 12.1% | 0.0 pts | -2.2 pts |
| Services and others marginGAAP | 75.1% | – | – |
| Research and development expensesGAAP | RMB2.91 billion (US$0.43 billion) | 0.3% | 32.1% |
| Selling, general and administrative expensesGAAP | RMB2.50 billion (US$0.37 billion) | 32.5% | 15.2% |
| Other income, netGAAP | RMB0.14 billion (US$0.02 billion) | -24.7% | -42.2% |
| Fair value gain on derivative liability relating to the contingent considerationGAAP | RMB0.05 billion (US$0.01 billion) | – | – |
| Loss from operationsGAAP | RMB1.14 billion (US$0.17 billion) | – | – |
| Non-GAAP loss from operationsnon-GAAP | RMB1.04 billion (US$0.15 billion) | – | – |
| Net lossGAAP | RMB1.34 billion (US$0.20 billion) | -25.1% | 179.9% |
| Non-GAAP net lossnon-GAAP | RMB1.24 billion (US$0.18 billion) | -26.6% | 221.1% |
| Net loss attributable to ordinary shareholders of XPENGGAAP | RMB1.34 billion (US$0.20 billion) | -25.1% | 179.9% |
| Non-GAAP net loss attributable to ordinary shareholders of XPENGnon-GAAP | RMB1.24 billion (US$0.18 billion) | -26.6% | 221.1% |
| Comprehensive loss attributable to ordinary shareholdersGAAP | RMB1.60 billion | -22.4% | 223.4% |
| Basic and diluted net loss per ADSGAAP | RMB1.40 (US$0.21) | – | – |
| Non-GAAP basic and diluted net loss per ADSnon-GAAP | RMB1.29 (US$0.19) | – | – |
| Basic and diluted net loss per ordinary shareGAAP | RMB0.70 (US$0.10) | – | – |
| Non-GAAP basic and diluted net loss per ordinary sharenon-GAAP | RMB0.65 (US$0.10) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Vehicle salesThe quarter-over-quarter increase was mainly attributable to higher vehicle deliveries. | RMB17.05 billion (US$2.51 billion) | 55.0% | 1.0% |
| Services and othersThe year-over-year and quarter-over-quarter increases were primarily attributable to increased revenues from technical R&D services rendered to a car manufacturer with the successful achievement of certain key milestones and parts and accessories sales. | RMB2.70 billion (US$0.40 billion) | 32.6% | 93.9% |
third quarter of 2026 outlook
- Revenuebetween RMB21.7 billion and RMB23.4 billion, representing a year-over-year increase of approximately 6.47% to 14.81%, and a quarter-over-quarter increase of approximately 9.91% to 18.52%
- NoteDeliveries of vehicles to be between 115,000 and 121,000, representing a year-over-year change of approximately -0.87% to +4.30%, and a quarter-over-quarter increase of approximately 11.33% to 17.14%.
What drove it
- Total revenue growth quarter-over-quarter was led by a 55.0% increase in vehicle sales revenue, mainly attributable to higher vehicle deliveries.
- Services and others revenue growth reflected technical R&D service milestones and parts and accessories sales.
- Gross margin increased to 20.7% as services and others margin rose to 75.1%.
- Vehicle margin declined year-over-year due to product generation transition.
- Research and development expenses increased mainly due to new vehicle model and AI-related technology development.
- Selling, general and administrative expense increased due to marketing and advertising, and quarter-over-quarter due to higher commission to franchised stores and marketing and advertising expenses.
Concerns
- Vehicle sales revenue increased 1.0% year-over-year and total deliveries increased 0.1% year-over-year.
- Vehicle margin was 12.1%, below 14.3% in the same period of 2025.
- Net loss increased 179.9% year-over-year to RMB1.34 billion.
- Other income, net decreased due primarily to a decrease in receipt of government subsidies.
- Third-quarter delivery outlook includes a year-over-year change of approximately -0.87% to +4.30%.
What to watch
- Third-quarter vehicle deliveries of between 115,000 and 121,000.
- Third-quarter total revenues of between RMB21.7 billion and RMB23.4 billion.
- The contribution from technical R&D services and parts and accessories sales to services and others revenue and margin.
- Vehicle margin following the product generation transition.
- Marketing, advertising and franchised-store commission expenses.
- Mass production and commercialization of physical AI technologies over the coming year.
Balance sheet and cash flow
- Cash position was RMB40.48 billion (US$5.97 billion) as of June 30, 2026, compared with RMB42.09 billion as of March 31, 2026.
- Cash and cash equivalents were RMB14,238,387 thousand as of June 30, 2026.
- Short-term borrowings were RMB10,070,000 thousand as of June 30, 2026.
- Long-term borrowings, current portion, were RMB706,156 thousand as of June 30, 2026.
- Long-term borrowings were RMB8,983,337 thousand as of June 30, 2026.
- Total liabilities were RMB74,577,464 thousand as of June 30, 2026.
- Total shareholders’ equity was RMB27,008,852 thousand as of June 30, 2026.
- On August 24, 2026, certain subscribers conditionally agreed to subscribe for certain shares to be newly issued by Dogotix Inc. at an aggregate purchase price of US$900 million.
Analysis
XPENG reported RMB19.74 billion (US$2.91 billion) of total revenues in the second quarter of 2026, up 8.0% year-over-year and 51.5% quarter-over-quarter. Vehicle sales revenue was RMB17.05 billion (US$2.51 billion), increasing 1.0% year-over-year and 55.0% sequentially, with management attributing the sequential increase mainly to higher vehicle deliveries. Total deliveries were 103,295, only 0.1% above the corresponding period of 2025 but above 62,682 in the first quarter of 2026.
Revenue mix was a material factor in the gross-profit outcome. Services and others revenue grew 93.9% year-over-year to RMB2.70 billion (US$0.40 billion), supported by technical R&D service milestones and parts and accessories sales. Services and others margin rose to 75.1%, compared with 53.6% a year earlier and 66.5% in the first quarter. This supported a 20.7% gross margin, up from 17.3% a year earlier and 20.6% in the prior quarter, while vehicle margin remained 12.1% sequentially and declined from 14.3% year-over-year because of product generation transition.
Profitability remained pressured below gross profit. Research and development expenses increased 32.1% year-over-year to RMB2.91 billion (US$0.43 billion), driven by new vehicle models and AI-related technologies. Selling, general and administrative expenses rose 15.2% year-over-year and 32.5% quarter-over-quarter to RMB2.50 billion (US$0.37 billion), reflecting marketing and advertising spending and, sequentially, higher franchised-store commissions. Net loss was RMB1.34 billion (US$0.20 billion), wider than RMB0.48 billion a year earlier, though narrower than RMB1.78 billion in the first quarter. Non-GAAP net loss was RMB1.24 billion (US$0.18 billion).
The company ended the quarter with a cash position of RMB40.48 billion (US$5.97 billion), compared with RMB42.09 billion as of March 31, 2026. Subsequent to quarter-end, Dogotix Inc. entered into an agreement under which subscribers conditionally agreed to purchase newly issued shares for an aggregate purchase price of US$900 million. XPENG also reported 38,027 deliveries in July 2026 and 204,004 year-to-date deliveries as of July 31, 2026.
For the third quarter, XPENG expects deliveries of 115,000 to 121,000 and total revenues of RMB21.7 billion to RMB23.4 billion. The delivery outlook spans an approximately -0.87% to +4.30% year-over-year change, while revenue is expected to increase approximately 6.47% to 14.81% year-over-year. The next period will test whether higher deliveries, services and others revenue, and sustained gross margin above 20% can support gross profit growth while the company continues R&D investment and elevated selling activity.
Management, verbatim
The back-to-back success of the GX and MONA L03 gives us greater confidence in our upcoming new models, as we translate our leading edge in smart technologies and design into more blockbuster products and stronger brand momentum.
Mr. Xiaopeng He, Chairman and CEO of XPENG
During the second quarter of 2026, our operations remained resilient despite industry-wide cost pressures. Driven by breakthroughs in our premiumization and globalization efforts, our gross margin continued to exceed 20%.
Dr. Hongdi Brian Gu, Vice Chairman and Co-President of XPENG
Not in the filing
stated, not guessed- Prior-period outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Capital expenditures were not reported.
- Share repurchases were not reported.
- Dividends were not reported.
- Third-quarter gross margin guidance was not reported.
- Third-quarter operating expense guidance was not reported.
- Third-quarter tax-rate guidance was not reported.
- Year-over-year and quarter-over-quarter percentage changes for services and others margin were not reported.
- Year-over-year and quarter-over-quarter percentage changes for loss from operations and non-GAAP loss from operations were not reported.
- Prior-year and prior-quarter basic and diluted net loss per ordinary share were not reported in the narrative financial highlights.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
XPeng's Q2 2026 earnings were released via SEC Form 6‑K, providing the first public disclosure of the quarter's financials.
Ticker impact
XPeng Inc. filed its Q2 2026 earnings release on Form 6‑K, disclosing revenue of RMB19.74 bn and a net loss of RMB1.34 bn.
Potential short‑term decline of 3‑5% as investors digest higher loss; upside if margin guidance is raised.
The report shows widening net loss and modest revenue growth, which typically triggers sell pressure in EV stocks.
Market effects
Highlights continued margin pressure in the Chinese EV sector, may affect peers like NIO and Li Auto.
Adds to mixed sentiment on Chinese equities amid broader market volatility.
Limited global impact; primarily relevant to investors with exposure to Chinese EV manufacturers.
Counterpoint
If XPeng can sustain margin expansion and launch new models, the stock may rebound despite short‑term loss.
Key entities
- CompanyXPeng Inc.
Chinese electric vehicle manufacturer listed on NYSE (XPEV).
