Hesai’s (HSAI) Robotics Bet Just Started Paying Off In A Big Way

On August 18, Hesai Group (NASDAQ:HSAI) reported its second quarter earnings, highlighting the growing significance of its robotics division. Net revenues increased by 22% year-over-year, reaching RMB 861 million, while lidar shipments surged 78.4% to 628,275 units. The most notable aspect was the 193.4% rise in robotics lidar shipments, totaling 142,371 units, alongside Hesai's actuation and spatial intelligence businesses generating their first commercial revenue.

Despite maintaining its core focus on automotive lidar, Hesai is aggressively shifting toward a broader robotics and spatial intelligence future. The company retained its position as the top long-range ADAS lidar supplier in China's automotive market, holding 44% of the segment in June 2026. Recent design wins with Volkswagen, Great Wall Motor, and GAC Toyota solidify its growing automotive partnerships.

Hesai's CFO, Peng Fan, revealed a consistent nine-year streak of year-over-year revenue growth and a fifth consecutive quarter of GAAP profitability, with net income surging 60% to RMB 71 million. The company's Strategic Growth Initiatives segment, which encompasses robotic actuation modules and the Kosmo spatial mapping platform, reported its first-ever RMB 45 million in revenue, surpassing initial expectations.

Management raised its full-year SGI guidance from RMB 100 million to a range of RMB 200 million to RMB 300 million, with a target of $100 million in SGI revenue and breakeven economics by 2027. However, the shift towards robotics has resulted in a decline in gross margin to 40.1% from 42.5% a year earlier, attributed to a growing revenue contribution from lower-margin products.

Hesai's SGI segment posted an operating loss of RMB 64 million for the quarter, indicating that commercialization in robotics and spatial computing remains an investment phase. Despite the challenges, Hesai's lidar business continues to drive growth, with a forward P/E of 30.58, suggesting optimistic expectations for future earnings growth.