Hesai Group's stock plummeted 10.54% during intraday trading on Tuesday, following the release of its fourth-quarter and full-year 2025 financial results.
The sharp decline was driven by investor disappointment with the company's quarterly performance and near-term outlook. Hesai reported Q4 adjusted earnings of 1.11 Chinese renminbi per share, missing the FactSet consensus estimate of 1.79 renminbi. Furthermore, Q4 revenue of 1.00 billion renminbi fell short of the expected 1.07 billion renminbi.
Adding to the negative sentiment, the company issued Q1 2026 revenue guidance in the range of 650 million to 700 million renminbi, which is below the analyst estimate of 728.8 million renminbi. This combination of an earnings miss, revenue shortfall, and weaker-than-expected forward guidance triggered the significant sell-off in the stock.