XPeng Inc. delivered a standout gross margin performance in the second quarter, yet its third-quarter delivery and revenue guidance fell notably short of market consensus. Concurrently, the company announced that its robotics subsidiary has secured a $900 million funding round, marking its formal entry into the humanoid robotics arena.

For the second quarter of 2026, XPeng's total revenue reached 19.74 billion yuan, coming in below the market estimate of 20.2 billion yuan, but reflecting an 8% year-on-year increase and a 51.5% sequential surge. Gross margin came in at 20.7%, exceeding the projected 19.2% and expanding by 3.4 percentage points compared to the same period last year. However, net loss widened to 1.34 billion yuan from 480 million yuan in the prior year's quarter, representing an approximate 1.8-fold year-on-year expansion.

Looking ahead to the third quarter, the company projects total revenue in the range of 21.7 billion to 23.4 billion yuan, with vehicle deliveries expected between 115,000 and 121,000 units, both showing significant sequential improvements.


Revenue Rebounds Sharply Sequentially, Gross Margin Exceeds 20% for Second Consecutive Quarter

XPeng's total second-quarter revenue jumped 51.5% quarter-over-quarter, driven by a combination of recovering seasonal demand and rapid growth in its services segment. Vehicle sales revenue stood at 17.05 billion yuan, up a slight 1% year-on-year but climbing 55% sequentially. Services and other income reached 2.7 billion yuan, surging 93.9% year-on-year and rising 32.6% quarter-over-quarter, with the robust annual growth attributed to increased revenue from technology R&D services provided to automakers, alongside contributions from parts and accessory sales.

Gross margin held above the 20% threshold for a second straight quarter, recording 20.7% in Q2, up from 17.3% in the year-ago period and roughly flat against the prior quarter's 20.6%. The services and other business segment posted an impressive 75.1% margin, marking a significant year-on-year improvement and providing solid support to overall profitability.

Vice Chairman and Co-President Brian Gu noted that despite intense industry-wide cost pressures, the company's gross margin has continued to exceed 20%, driven primarily by its premiumization and globalization initiatives. He anticipates accelerated mass production and commercialization of physical AI technologies over the coming year, which should generate substantial margin growth.


Delivery Growth Stalls Year-on-Year, Net Loss Expands Sharply

Delivery data reveals that total vehicle deliveries in the second quarter reached 103,295 units, nearly flat against the 103,181 units delivered in the same period last year, reflecting a marginal year-on-year growth of just 0.1%. Vehicle margin came in at 12.1%, down 2.2 percentage points from 14.3% a year earlier, a decline the company attributes to product production transitions.

Cost pressures continued to escalate. R&D expenses totaled 2.91 billion yuan, up 32.1% year-on-year, primarily driven by increased investment in new model development and AI-related technologies. Selling, general, and administrative expenses reached 2.5 billion yuan, rising 15.2% year-on-year, fueled mainly by higher marketing and advertising outlays. Combined, these two expense lines totaled approximately 5.4 billion yuan, absorbing a significant portion of gross profit.

These pressures ultimately weighed on the bottom line: the second-quarter net loss stood at 1.34 billion yuan, expanding nearly 1.8 times from 480 million yuan a year earlier. The non-GAAP net loss was 1.24 billion yuan, also significantly widening from 390 million yuan in the prior-year period. Notably, the loss narrowed from 1.78 billion yuan in the previous quarter, showing clear sequential improvement.


Third-Quarter Guidance Falls Short of Market Expectations

The company's third-quarter outlook stands as the most closely watched signal in the current earnings report. XPeng expects deliveries of 115,000 to 121,000 units in Q3, representing a year-on-year change of approximately -0.87% to +4.30%, compared to the market estimate of around 147,000 units—a gap of roughly 18% to 22%. Revenue guidance of 21.7 billion to 23.4 billion yuan implies year-on-year growth of about 6.5% to 14.8%, also significantly below the market's projection of 27.26 billion yuan.

The company stated that this outlook is based on current market conditions and reflects preliminary estimates of market and operational conditions as well as customer demand, noting that these factors remain subject to change.


Robotics Subsidiary Secures $900 Million in Funding

On the robotics front, XPeng announced on the same day as its earnings release that subsidiary Dogotix Inc. has entered into a share purchase agreement with multiple parties, under which subscribers have conditionally agreed to subscribe for newly issued shares of Dogotix at a total price of $900 million. He Xiaopeng indicated that the company has recently achieved several significant milestones in the development of its mass-production humanoid robot version.

On the product front, XPeng held the global launch event for the MONA L03 in Munich, Germany, on July 16, introducing this next-generation AI SUV coupe to international markets. July deliveries reached 38,027 units, bringing year-to-date cumulative deliveries to 204,004 units.

As of June 30, 2026, the company held cash reserves of 40.48 billion yuan, slightly down from 42.09 billion yuan at the end of the previous quarter. Short-term borrowings increased from 4.28 billion yuan to 10.07 billion yuan during the same period.