XPeng posts higher revenue in Q2 2026, but losses continue to mount

XPeng published its financial results for the second quarter of this year with some good news and some bad news. The good news is that the company posted an 8% revenue increase year-over-year, but the net operating loss almost tripled compared to the same period last year.

The revenue for Q2 2026 is RMB 19.74 billion ($2.94 billion), which is on the low end of the guidance, which projected revenue between RMB 19.60 and RMB 20.80 billion. Compared to the previous quarter, that's about a 51.5% increase.

The net loss is RMB 1.34 billion ($199 million), up from RMB 480 million in Q2 2025, which is a whopping 179% jump. However, compared to the previous quarter, it's almost 25% down.

The company attributes its year-on-year decline to generational transition, which partially explains why revenue is up, but profit is down. According to XPeng itself, the growth is mainly driven by technical research and the development of services provided to other automakers. In fact, these services drove the gross margin from 53.6% last year to 75.1% in Q2 2026.

On the other hand, vehicle sales revenue went up by only 1% year-on-year, but by 55% sequentially. The vehicle deliveries totaled 103,295 during this period, up by 0.1% from Q2 2025. At least the vehicle margin of 12.1% remained the same compared to Q1 2025, but it's still down from 14.3% the year before.

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