Li Auto (NASDAQ:LI) Posts Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Li Auto (NASDAQ:LI) released its earnings results on Thursday. The company reported $0.04 EPS for the quarter, missing the consensus estimate of $0.05 by ($0.01), FiscalAI reports. The business had revenue of $4.11 billion for the quarter, compared to analyst estimates of $4.16 billion. Li Auto had a return on equity of 6.31% and a net margin of 3.60%.The company’s revenue for the quarter was down 35.0% on a year-over-year basis. During the same period in the prior year, the business earned $3.79 EPS.

Here are the key takeaways from Li Auto’s conference call:

• Company launched a Store Partner program in March, consolidating underperforming locations, giving store managers decision rights and profit‑sharing, and expects tangible sales and operational improvements by Q3 as it focuses on “quality over quantity” in its direct‑sales network.
• The all‑new Li L9 lineup is slated for a Q2 launch with 800V architecture, 5C ultra‑fast charging, an in‑house range‑extender 3.0 and the top‑end Li L9 Livis (CNY 559,800) featuring a full drive‑by‑wire chassis and dual in‑house M100 chips — management frames this as a technology‑led step change for the flagship SUV.
• Financials weakened in Q4 — total revenue fell 35% YoY to RMB 28.8 billion (vehicle sales down 36% YoY), margins compressed and the company recorded an operating loss; Q1 2026 guidance calls for 85,000–90,000 deliveries and RMB 20.4–21.6 billion in revenue.
• BEV momentum is recovering — Li i8 owner NPS rose >20% with orders rebounding (March orders up ~180% vs January) and Li i6 supply constraints have eased, with management targeting roughly 20,000 monthly deliveries as production stabilizes.
• R&D and AI remain a major strategic focus — R&D was CNY 11.3bn in 2025 (~50% AI‑related) and management guides ~CNY 12bn for 2026 with ~50% on AI as Li Auto pursues an “embodied AI” transformation that could differentiate long term but will keep investment intensity high near term.

Li Auto Stock Down 1.2%

Shares of LI traded down $0.22 on Thursday, reaching $18.08. The company’s stock had a trading volume of 2,558,509 shares, compared to its average volume of 3,678,884. Li Auto has a twelve month low of $15.71 and a twelve month high of $32.03. The stock has a market capitalization of $18.93 billion, a PE ratio of 31.32 and a beta of 0.60. The company has a current ratio of 1.80, a quick ratio of 1.67 and a debt-to-equity ratio of 0.05. The firm has a fifty day moving average of $17.43 and a 200-day moving average of $19.87.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on LI. Jefferies Financial Group reaffirmed a “hold” rating and set a $17.50 price objective (down from $28.80) on shares of Li Auto in a research report on Friday, January 23rd. JPMorgan Chase & Co. downgraded shares of Li Auto from a “neutral” rating to an “underweight” rating and set a $14.00 price target for the company. in a research note on Monday, February 9th. Piper Sandler upped their price objective on shares of Li Auto from $18.00 to $19.00 and gave the company a “neutral” rating in a report on Thursday, January 8th. China Renaissance reissued a “hold” rating and set a $18.50 price objective on shares of Li Auto in a research report on Monday, December 1st. Finally, Macquarie Infrastructure set a $15.00 target price on Li Auto in a research note on Thursday, January 15th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twelve have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Reduce” and an average target price of $19.59.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Tidal Investments LLC grew its holdings in Li Auto by 1.0% during the second quarter. Tidal Investments LLC now owns 88,772 shares of the company’s stock worth $2,407,000 after buying an additional 856 shares in the last quarter. Corient Private Wealth LLC raised its holdings in shares of Li Auto by 8.6% in the second quarter. Corient Private Wealth LLC now owns 11,955 shares of the company’s stock valued at $324,000 after purchasing an additional 951 shares during the last quarter. Vanguard Personalized Indexing Management LLC boosted its holdings in Li Auto by 4.3% during the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 27,113 shares of the company’s stock worth $459,000 after purchasing an additional 1,121 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Li Auto by 0.7% during the second quarter. Geode Capital Management LLC now owns 176,684 shares of the company’s stock worth $4,790,000 after purchasing an additional 1,230 shares during the last quarter. Finally, Advisors Asset Management Inc. grew its position in Li Auto by 6.4% in the 4th quarter. Advisors Asset Management Inc. now owns 26,996 shares of the company’s stock worth $457,000 after purchasing an additional 1,624 shares in the last quarter. Hedge funds and other institutional investors own 9.88% of the company’s stock.

Li Auto Company Profile

Li Auto Inc is a Chinese automotive company that develops, manufactures and sells smart electric vehicles, with an early focus on range-extended electric SUVs designed for family use. The company is headquartered in China and serves the domestic market through a combination of online channels and a network of retail/showroom locations. Li Auto was founded to address range-anxiety in electric vehicle buyers by integrating a small internal-combustion engine as a range extender alongside a large battery, enabling longer driving range while retaining electric driving characteristics.

The company’s product lineup centers on multi‑occupant SUVs that combine electric propulsion, advanced in‑vehicle connectivity and driver‑assistance features.