Hesai Group (HSAI) On Strong Q2 And Higher Guidance Looks Cheap But Is It Priced In
Hesai Group (HSAI) stock is in focus after the company reported second quarter 2026 earnings and issued revenue guidance for the third quarter, alongside updates on robotics lidar growth.
Despite the upbeat second quarter report and higher third quarter revenue guidance, Hesai Group’s share price has been under pressure this year. The year to date share price return is down 27.37% and the 1 year total shareholder return is down 34.81%, while the 3 year total shareholder return of 77.02% shows earlier gains and suggests recent momentum has faded compared with the past.
Compare Hesai Group's lidar and robotics story with other potential breakouts by scanning a curated list of 37 robotics and automation stocks that are shaping the next wave of automation and intelligent machines.
After a strong run in revenues and robotics lidar shipments but a steep share price pullback, the question for Hesai Group now is simple. Is most of the easy upside already in the rearview mirror, or is the opportunity just starting to be reflected in the valuation metrics investors care about next?
Most Popular Narrative: 35.4% Undervalued
Hesai Group's most followed narrative points to a fair value of $27.07 compared with the last close at $17.49, which frames a wide valuation gap that the market has yet to close.
Hesai’s valuation is increasingly supported by tangible execution and forward visibility rather than expectations alone. Following strong 4Q25 results, management reiterated a confident outlook, underpinned by stable gross margins driven by scale efficiencies and ongoing technology-led cost reductions. This combination is critical, as it signals that growth is not coming at the expense of profitability, but alongside improving unit economics.
According to yiannisz, the narrative leans heavily on rapid earnings expansion, rising lidar volumes and new sensing products that could reshape how investors frame Hesai Group's long term cash flow potential.
Want to see what powers that $27.07 fair value? The narrative leans on compound revenue growth, higher margins and a future profit profile that looks very different to today.
Result: Fair Value of $27.07 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Hesai Group’s story can still be upset by factors such as slower lidar adoption in key auto and robotics programs or geopolitical and regulatory shocks affecting global demand.
Find out about the key risks to this Hesai Group narrative.
Another View on Hesai Group’s Valuation
The first narrative points to Hesai Group trading well below an estimated fair value, yet the current P/E ratio of 36.9x is higher than both peers at 16.8x and the US Auto Components industry at 18.1x, and also above a fair ratio of 32.9x. That richer multiple can mean less room for error if growth or expectations cool from here, so which story do you trust more?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Mixed signals on Hesai Group so far, which is exactly why it can help to look at the same data through your own lens and move quickly while information is fresh. To weigh both the concerns and the potential upside in one place, start with these 4 key rewards and 2 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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