Li Auto Q2 2026 Financial Results: Profitability Under Pressure

Li Auto Q2 2026 financial results are set to be released before the US market opens on August 26, with investors closely watching whether the Chinese extended-range electric vehicle pioneer can reverse its recent profitability decline. Management will conduct an earnings conference call on the same day at 8:00 am US Eastern Time, equivalent to 8:00 pm Beijing time, the company said on Tuesday. The second-quarter report will follow a first quarter in which Li Auto recorded an unexpected net loss of 2.3 billion yuan ($339 million), compared with a net profit of 647 million yuan in the same period of 2025.

The most significant concern is the deterioration in gross margin. Li Auto's gross margin fell to 7.9 percent in the first quarter from 20.5 percent a year earlier. The decline reflected a lower average selling price caused by a changed product mix, while the industry's price war added further pressure. Second-quarter sales also remained weak. Li Auto delivered 98,330 vehicles during the quarter, representing an 11.47 percent year-on-year decline but a 3.35 percent increase from the previous quarter. The delivery result landed in the upper half of the company's guidance range of 95,000 to 100,000 units.

Although quarterly deliveries improved sequentially, the second quarter ended the year-on-year growth recorded in the first quarter. Li Auto had guided for second-quarter revenue of 24.1 billion yuan to 25.4 billion yuan, implying a year-on-year decline of 16.0 percent to 20.2 percent. Pressure is also building around the company's annual delivery objective. Li Auto set a target of 20 percent year-on-year delivery growth, equivalent to about 490,000 vehicles. However, the company delivered 193,472 vehicles during the first half, down 5.13 percent year-on-year. July deliveries reached 30,468 vehicles, a slight 0.86 percent decline from a year earlier.

Li Auto is responding to the weaker performance by accelerating its product refresh cycle. The company launched the updated Li L9 in May, followed by the all-new five-seat Li L8 in June and the new-generation Li L6 on July 16. On August 6, it expanded the Li i8 lineup with a cheaper rear-wheel-drive long-range version of its flagship all-electric SUV. The new version starts at 309,800 yuan, which is 30,000 yuan below the all-wheel-drive variant. The pricing move comes as Li Auto seeks to improve the competitiveness of its electric vehicle lineup while managing pressure from weaker deliveries and the broader market price war.

The Li i8 has continued to fall short of expectations despite the expanded offering. The model delivered only 779 units in June, bringing its first-half total to 8,733 vehicles. Deliveries subsequently recovered to 1,026 units in July. By contrast, the lower-positioned Li i6 has emerged as Li Auto's main sales pillar. It delivered 21,453 units in June, contributing nearly 70 percent of the company's total for that month. In July, Li i6 deliveries reached 15,420 units and accounted for 50.61 percent of the monthly total. The contrasting performance highlights the importance of the i6 to near-term sales.

The next major product milestone is the Li i9, a 5,225-millimeter-long flagship all-electric SUV scheduled for launch in September. It will become Li Auto's largest electric SUV to date and represents another attempt to strengthen the company's product portfolio as it seeks to restore momentum. The broader product rollout is taking place alongside continued pressure on profitability, deliveries and revenue expectations. Investors therefore have several indicators to assess when the second-quarter results are released, including the extent of margin pressure, the revenue outcome relative to guidance, delivery momentum and the performance of recently refreshed models.

Li Auto is responding to the weaker performance by accelerating its product refresh cycle. The company launched the updated Li L9 in May, followed by the all-new five-seat Li L8 in June and the new-generation Li L6 on July 16. On August 6, it expanded the Li i8 lineup with a cheaper rear-wheel-drive long-range version of its flagship all-electric SUV. The new version starts at 309,800 yuan, which is 30,000 yuan below the all-wheel-drive variant. The pricing move comes as Li Auto seeks to improve the competitiveness of its electric vehicle lineup while managing pressure from weaker deliveries and the broader market price war.

Cash reserves continue to provide Li Auto with a financial buffer as the company works through the current pressure. Li Auto held 94.3 billion yuan in cash at the end of the first quarter, although free cash flow was negative 7.39 billion yuan during the quarter. The combination of substantial cash reserves and negative free cash flow will remain relevant to the assessment of financial resilience. The August 26 results should therefore provide a clearer view of whether the company's product refresh strategy, pricing actions and vehicle mix can stabilize performance, while the September launch of the Li i9 adds another important near-term catalyst for the business.

Frequently Asked Questions

When will Li Auto report its second-quarter 2026 results?
Li Auto is scheduled to report its unaudited second-quarter 2026 financial results before the US market opens on August 26, giving investors an important update on profitability. The report will cover quarterly revenue, net income or loss, gross margin and other financial measures. Investors will also assess vehicle deliveries against the company's guidance range of 95,000 to 100,000 units. Management is scheduled to hold an earnings conference call at 8:00 am US Eastern Time, or 8:00 pm Beijing time, on the same day.

What is the main profitability concern for Li Auto?
The main concern for investors is whether Li Auto can stabilize profitability after its first-quarter net loss and sharp gross-margin decline. In the first quarter, the company reported a net loss of 2.3 billion yuan ($339 million), compared with a net profit of 647 million yuan in the same period of 2025. Gross margin also fell to 7.9 percent from 20.5 percent a year earlier. Investors will therefore focus on whether product refreshes, pricing actions and changes in vehicle mix can improve margins and support a more sustainable financial trajectory.

How are Li Auto deliveries tracking against its annual target?
Li Auto delivered 193,472 vehicles in the first half of 2026, leaving its annual target of about 490,000 vehicles under increasing pressure. The company had targeted 20 percent year-on-year delivery growth, but first-half deliveries declined 5.13 percent year-on-year. July deliveries were 30,468 vehicles, down 0.86 percent from a year earlier. The company is accelerating product launches, including the updated Li L9, all-new five-seat Li L8, new-generation Li L6 and upcoming Li i9, while the Li i6 remains an important contributor to monthly sales.