XPeng Profit Tempered by Weak 2026 Guidance
XPeng profit marks the automaker's first quarterly gain; wider margins and premium models helped results, but weak Q1 2026 guidance could slow momentum.
KEY TAKEAWAYS
- XPeng reported its first quarterly net profit of $55.5 million in Q4 2025.
- Gross margin widened to 21.3% and vehicle margin rose to 13.0%.
- Q1 2026 guidance calls for 61,000-66,000 deliveries and revenue down 16%-23%.
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XPeng Inc. (XPEV) reported its first quarterly profit on March 20, 2026, driven by wider margins and strong sales of higher-margin models. The company issued weaker first-quarter 2026 delivery and revenue guidance, which could slow near-term momentum.
Q4 Profit and Margin Gains
XPeng recorded a net profit of $55.5 million in the fourth quarter of 2025, its first positive quarterly result. The company attributed the gain to stronger sales of higher-margin models and technology partnerships.
Gross margin expanded to 21.3%, up 6.9 percentage points year-over-year, while vehicle margin rose 3.0 points to 13.0%. Revenue grew 38.2% year-over-year. Quarterly deliveries reached 116,249 units, a record for the period, though below the company’s guidance range of 125,000 to 132,000 units.
Full-Year Results and Outlook
For full-year 2025, XPeng delivered 429,445 vehicles, up 125.9% from 2024. Revenue rose 87.7% year-over-year, and gross margin increased 4.6 percentage points to 18.9%. The company narrowed its annual net loss significantly compared with the prior year. XPeng held $6.81 billion in cash as of December 31, 2025.
The automaker’s first-quarter 2026 guidance calls for deliveries of 61,000 to 66,000 units and projects revenue down about 16% to 23% year-over-year. This softer outlook contrasts with the recent quarterly momentum and falls below analysts’ expectations.
XPeng’s path to sustained profitability depends on continued sales of higher-margin models and the performance of its technology partnerships.
