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

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

Li Auto stock traded down $0.22 during trading hours on Thursday, reaching $18.08. 2,558,509 shares of the stock were exchanged, compared to its average volume of 3,678,884. The stock has a 50 day moving average of $17.43 and a two-hundred day moving average of $19.87. The company has a market cap of $18.93 billion, a P/E 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. Li Auto has a twelve month low of $15.71 and a twelve month high of $32.03.

Wall Street Analyst Weigh In

LI has been the subject of a number of research analyst reports. Piper Sandler boosted their target price on Li Auto from $18.00 to $19.00 and gave the company a “neutral” rating in a research note on Thursday, January 8th. Citigroup cut their price objective on Li Auto from $20.20 to $18.50 and set a “neutral” rating on the stock in a report on Thursday, January 15th. JPMorgan Chase & Co. lowered Li Auto from a “neutral” rating to an “underweight” rating and set a $14.00 price objective for the company. in a research report on Monday, February 9th. China Renaissance reissued a “hold” rating and set a $18.50 target price on shares of Li Auto in a research note on Monday, December 1st. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Li Auto in a report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have issued a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, Li Auto has a consensus rating of “Reduce” and an average target price of $19.59.

Institutional Investors Weigh In On Li Auto

Hedge funds have recently modified their holdings of the company. DV Equities LLC bought a new stake in Li Auto in the fourth quarter valued at approximately $72,000. Empowered Funds LLC acquired a new stake in shares of Li Auto during the fourth quarter worth $197,000. Limestone Investment Advisors LP acquired a new stake in shares of Li Auto during the third quarter worth $222,000. Mercer Global Advisors Inc. ADV bought a new position in Li Auto during the third quarter worth $227,000. Finally, Chesapeake Capital Corp IL bought a new stake in Li Auto during the third quarter valued at $227,000. Institutional investors and hedge funds own 9.88% of the company’s stock.

About Li Auto

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.