XPeng Posts Surprise 383.2M RMB Q4 Profit
XPeng Inc. delivered a robust financial performance in the fourth quarter of 2025, significantly outperforming market expectations. The electric vehicle manufacturer reported revenue of 22.25 billion RMB, exceeding the consensus estimate of 21.64 billion RMB. More impressively, the company achieved a net profit of 383.2 million RMB, a stark reversal from the projected net loss of 45.3 million RMB. This strong profitability in the final quarter provided a positive end to a year of strategic shifts for the company.
Q1 Guidance Slashes Delivery Forecast by Over 20%
The positive sentiment from the Q4 earnings beat was immediately undercut by a deeply pessimistic forecast for the first quarter of 2026. XPeng management guided for revenues between 12.2 billion and 13.28 billion RMB, missing the 15.72 billion RMB analyst target. The most significant warning came from its delivery outlook, with the company projecting it will deliver only 61,000 to 66,000 vehicles. This range falls more than 20% below the market estimate of 83,680 vehicles and raises serious questions about near-term demand and the company's ability to meet its ambitious full-year targets.
Strategic Bets Contrast With Near-Term Headwinds
The weak Q1 guidance reflects immediate operational challenges, including a reported year-over-year decline in February deliveries, which has already pressured the stock. This near-term slowdown contrasts with XPeng's long-term growth initiatives. The company is deepening its partnership with Volkswagen, recently starting production of the jointly-developed ID.UNYX 08 SUV. Simultaneously, XPeng is diversifying beyond automobiles by constructing a new factory for humanoid robots and expanding its global sales network to over 60 countries. For investors, the immediate concern is whether these long-term strategic bets can materialize fast enough to offset the current slowdown in its core EV business.
Edgen Stock·Mar 20 2026, 09:16
