Gasgoo Munich-On May 19, 2026, Hesai Technology released its unaudited financial results for the first quarter. Amid intensifying competition in the smart vehicle industry, Hesai delivered a performance marked by growth in both revenue and deliveries, achieving GAAP profitability for the fourth consecutive quarter.At the same time, the company announced it has become a strategic lidar partner for Mercedes-Benz, marking its first entry into the L3-level original equipment supply chain of a global top-tier luxury brand. From financial data to strategic positioning, Hesai’s performance this quarter presented multiple positive signals.Financial and Market Performance: Dual Drive of Profitability Sustainability and Economies of ScaleHesai generated revenue of 680 million yuan in the first quarter, up 29.6% year-on-year, marking the eighth consecutive quarter of growth. Under GAAP standards, net profit came in at 18.3 million yuan — the fourth straight quarter of profitability. On a non-GAAP basis, net profit jumped 452.9% to 47.7 million yuan, signaling a significant boost in earning power.Image Source: Hesai TechnologyOn the delivery front, Hesai shipped a total of 471,723 lidar units in the first quarter, a surge of 140.9% from a year earlier. Of these, ADAS lidar deliveries reached 353,441 units, up 141.9%, while robot lidar deliveries hit 118,282 units, climbing 137.8%. Both tracks achieved simultaneous exponential growth.Meanwhile, as of March 31, 2026, Hesai’s cash reserves stood at 7.232 billion yuan. The company projects net revenue for the second quarter of 2026 will land between 850 million and 900 million yuan, representing year-on-year growth of roughly 20% to 27%. It also maintained its full-year guidance of 3 million to 3.5 million lidar shipments, underscoring confidence in its business outlook.Regarding market position, data from Gasgoo Institute shows Hesai captured a 55% share of China's automotive main lidar market in March 2026, ranking first in the industry for 14 consecutive months. The latest "2026 Global Automotive Market Report" from authoritative international firm Yole Group also confirms Hesai’s lead, placing it first globally in ADAS main lidar shipments with a 43% market share.Image Source: GAC ToyotaCurrently, Hesai’s product applications are penetrating from high-end models into broader market segments. Take the 2026 GAC Toyota Bozhi 3X, for example: its intelligent driving hardware features Hesai’s new-generation ATX lidar with a detection range of 200 meters. This marks the industry’s first deployment of a top-tier lidar brand on a pure electric vehicle priced around the 100,000 yuan level.Additionally, the Cadillac VISTIQ comes standard with Hesai lidar, while the all-new Li Auto L9 Livis features four Hesai lidars as standard equipment. The FTX blind-spot lidar also entered mass production for the first time. To date, cumulative production installations of Hesai lidars have surpassed 2.4 million units.Strategic Layout: High-End Client Breakthroughs and New Growth Curves Advance TogetherDuring the first quarter, Hesai was active on the strategic front. Most notably, it became a strategic lidar partner for Mercedes-Benz and was confirmed as a supplier for the German automaker's L3 autonomous driving models.Image Source: Hesai TechnologyUnder the newly signed supply agreement, Hesai will provide core perception hardware support for Mercedes-Benz’s L3 vehicle projects in Europe and China. The required capacity will be secured by Hesai’s "Galileo" manufacturing center in Thailand, which recently commenced production. This marks the first time a Chinese lidar company has publicly entered the L3-level original equipment supply chain of a global top-tier luxury brand, highlighting the progress domestic automotive sensors have made in the highly regulated European market.Regarding overseas expansion, Hesai’s products have entered the GAC Toyota system via the 2026 Bozhi 3X, marking its first entry into a Japanese automaker’s lineup. Furthermore, it has secured designations for multiple overseas models from Xiaomi, with mass production expected in 2027.Additionally, in the first quarter, Hesai announced an evolution from "spatial perception" to "spatial intelligence," optimizing its financial reporting structure accordingly. The business is now divided into two segments: "Lidar Business" and "Strategic Growth Business." While the lidar business continues to generate cash flow as the core operation, the strategic growth business focuses on the Physical AI sector. Its first product, Kosmo, is positioned as a spatial intelligence device and has already secured its initial orders. It is expected to start contributing revenue in the second quarter of 2026, with potential net revenue of about 100 million yuan for the full year, targeting an expansion to roughly 500 million yuan in 2027.Image Source: Hesai TechnologyOn the technology front, Hesai released the "Picasso SPAD-SoC" on April 17 — the world’s first 6D full-color lidar ultra-sensitive chip. Its photon detection efficiency breaks the 40% barrier, achieving pixel-level fusion of RGB color and XYZ spatial information at the chip level for the first time.Reportedly, the new ETX series equipped with this chip boasts a maximum detection range of 600 meters and supports up to 4,320 lines, with mass production expected in the second half of 2026.ConclusionTaken together, Hesai showed positive progress across four dimensions in the first quarter: financial performance, market share, high-end client acquisition, and new business layout. The Mercedes-Benz L3 designation further elevates the company’s influence in the global high-end market, while the launch of the strategic growth business opens a second growth curve. Driven by the continued expansion of its core lidar operations and the gradual ramp-up of new ventures, Hesai’s financial performance for the remainder of 2026 will be worth watching.
