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

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

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 2.8%

Shares of LI stock traded down $0.50 on Friday, hitting $17.33. 4,278,558 shares of the company’s stock traded hands, compared to its average volume of 3,786,515. The company’s fifty day simple moving average is $17.45 and its 200 day simple moving average is $19.85. Li Auto has a one year low of $15.71 and a one year high of $32.03. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.80 and a quick ratio of 1.67.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. The Goldman Sachs Group reaffirmed a “buy” rating and set a $27.00 price objective on shares of Li Auto in a report on Monday, December 1st. Piper Sandler raised shares of Li Auto from a “neutral” rating to an “outperform” rating in a report on Friday. JPMorgan Chase & Co. lifted their price objective on shares of Li Auto from $14.00 to $15.50 and gave the company an “underweight” rating in a research note on Friday. Jefferies Financial Group reissued a “hold” rating and set a $17.50 target price (down from $28.80) on shares of Li Auto in a report on Friday, January 23rd. Finally, Macquarie Infrastructure set a $15.00 target price on Li Auto in a research report on Thursday, January 15th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $19.22.

Institutional Investors Weigh In On Li Auto

Several institutional investors and hedge funds have recently bought and sold shares of LI. Goldman Sachs Group Inc. lifted its position in Li Auto by 133.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,636,156 shares of the company’s stock valued at $66,431,000 after acquiring an additional 1,505,991 shares during the period. Empowered Funds LLC bought a new stake in shares of Li Auto in the 1st quarter worth approximately $506,000. Geode Capital Management LLC grew its stake in shares of Li Auto by 0.7% in the 2nd quarter. Geode Capital Management LLC now owns 176,684 shares of the company’s stock worth $4,790,000 after buying an additional 1,230 shares during the last quarter. Quantinno Capital Management LP grew its stake in shares of Li Auto by 22.0% in the 2nd quarter. Quantinno Capital Management LP now owns 35,076 shares of the company’s stock worth $951,000 after buying an additional 6,331 shares during the last quarter. Finally, Boothbay Fund Management LLC increased its position in Li Auto by 320.1% during the 2nd quarter. Boothbay Fund Management LLC now owns 37,486 shares of the company’s stock valued at $1,016,000 after buying an additional 28,563 shares in the last quarter. Hedge funds and other institutional investors own 9.88% of the company’s stock.

Key Headlines Impacting Li Auto

Here are the key news stories impacting Li Auto this week:

• Positive Sentiment: Management is accelerating AI-focused over‑the‑air software upgrades, plans a second‑quarter launch of the all‑new Li L9, and announced governance changes — initiatives investors see as potential drivers of product differentiation and future revenue streams. Li Auto (LI) Is Up 5.6% After Weak 2026 Outlook And AI Push – Has The Bull Case Changed?
• Positive Sentiment: Some analysts and commentators argue LI’s shares look cheap relative to fundamentals (positive margin trajectory and continued profitability), framing the stock as undervalued if delivery trends stabilize. Li Auto: Too Cheap To Make Sense
• Neutral Sentiment: The full Q4 2025 earnings call transcript is available for investors who want management commentary on margins, product cadence and guidance assumptions. Li Auto Inc. (LI) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: The company’s press release summarizes Q4 figures: quarterly revenue RMB28.8B (~US$4.1B) and deliveries of 109,194 vehicles; full-year deliveries 406,343. Useful for modelers but the market is focused on trends and guidance. GlobeNewswire Press Release
• Negative Sentiment: Core results disappointed: Q4 EPS missed consensus (reported $0.04 vs $0.05 expected), revenue fell ~35% year‑over‑year and net margin compressed — fundamentals that explain downward pressure on the stock. MarketBeat Earnings Summary
• Negative Sentiment: Q1 2026 guidance is materially below Street expectations (revenue guidance roughly $2.9B–$3.1B vs. consensus ~ $4.1B), signaling continued delivery and revenue declines in a highly competitive China EV market — a key near‑term headwind. Li Auto (LI) Is Up 5.6% After Weak 2026 Outlook And AI Push – Has The Bull Case Changed?
• Negative Sentiment: JPMorgan raised its price target to $15.50 but kept an “underweight” rating, signaling analyst caution and implying downside versus current levels — a reminder that some sell‑side views remain skeptical. Benzinga Note on JPMorgan

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.