CATL Q3 profit rises 14.54% to 21.25 billion yuan, below forecasts; shares fall
In short
CATL reported third-quarter 2026 revenue of 165.221 billion yuan, up 58.58%, and net profit attributable to shareholders of 21.246 billion yuan, up 14.54%. Yicai and Huxiu said profit fell short of analyst forecasts as gross margin dropped to 20.69%. CATL's A shares closed at 227.90 yuan on 21 October, according to Huxiu.
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CATL published its third-quarter 2026 results on 20 October. Revenue was 165.221 billion yuan, up 58.58% year on year. Net profit attributable to shareholders was 21.246 billion yuan, up 14.54%, and basic earnings per share were 4.62 yuan. Yicai reported that for the first three quarters revenue was 442.137 billion yuan, up 56.19%, and net profit attributable to shareholders was 64.53 billion yuan, up 31.6%. [ 1 , 2 , 3 ]
Yicai and Huxiu said the quarterly profit was below market expectations. They cited forecasts of 22.9 billion yuan from Bernstein, 24 billion from Goldman Sachs and 25 to 26 billion from CITIC Lyonnais (中信里昂). Net profit was also lower than in the second quarter, by 5.8% according to Jiemian and 5.77% according to Huxiu. Yicai said profit growth slowed from 48.55% in the first quarter to 36.4% in the second and 14.54% in the third, while revenue growth rose from 52.46% to 58.58%. IT Home's AI-generated commentary, by contrast, said the results exceeded general market expectations. [ 1 , 3 , 5 , 7 ]
Yicai attributed the gap between revenue and profit mainly to a lower gross margin: 20.69% in the third quarter, against 25.80% a year earlier and 23.15% in the second quarter. It said this was the lowest since the fourth quarter of 2022. Taxes and surcharges were 2.214 billion yuan, against 597 million a year earlier. A 2% consumption tax on lithium-ion batteries has applied since 1 September 2026, rising to 4% in September 2027. Huxiu added that the export VAT rebate rate was cut from 9% to 6% in April 2026. According to Huxiu, management blamed a higher share of low-value products and the new tax, and said the product mix mattered more than the tax and that most factors were short-term and reversible. [ 3 , 4 , 7 ]
Cash flow also weakened. Operating cash flow for the first three quarters was 61.625 billion yuan, down 23.60%, and Huxiu calculated 1.409 billion yuan for the third quarter against 21.973 billion a year earlier. Huxiu quoted the company as linking the weak cash flow to shorter upstream payment terms and more prepayments, expected to last two or three quarters. [ 4 , 7 ]
The share price fell. On 20 October, before the results, CATL's A shares closed at 259.08 yuan, down 2.97%, and its H shares at 411.8 Hong Kong dollars, down 6.58%, Yicai reported. That day JPMorgan cut its rating on the H shares from overweight to neutral, lowering its target price from 725 to 500 Hong Kong dollars, and kept the A shares at overweight. On 21 October, Huxiu said, the A shares opened about 5% lower and closed at 227.90 yuan, and the H shares fell 11.4% to 364.8 Hong Kong dollars. Huxiu said the company responded that industry demand was not as pessimistic and that capacity utilisation would stay high. [ 3 , 5 , 7 ]
Huxiu and Jiemian also reported that, over the past month or so, carmakers had been adding second battery suppliers or taking battery packs and system integration in-house. Huxiu named Li Auto, which dropped CATL from its new L8 model, and Xiaomi, which widened its battery suppliers from two to four. An investor quoted by Jiemian said customers may not cut CATL orders at once but are renegotiating price, delivery and division of work. [ 4 , 5 ]
Why it matters
Business outlets in the documents describe revenue growing much faster than profit, with a falling gross margin, a new consumption tax and weak cash flow. They link the results to a sharp fall in CATL's share price and to carmakers adding other battery suppliers.
Key facts
- CATL's third-quarter 2026 revenue was 165.221 billion yuan, up 58.58% year on year; net profit attributable to shareholders was 21.246 billion yuan, up 14.54%; basic earnings per share were 4.62 yuan. [ 1 , 2 , 3 ]
- For the first three quarters, revenue was 442.137 billion yuan (up 56.19%) and net profit attributable to shareholders was 64.53 billion yuan (up 31.6%), Yicai reported. [ 3 ]
- Third-quarter gross margin was 20.69%, against 25.80% a year earlier and 23.15% in the second quarter, Yicai reported. [ 3 , 7 ]
- Third-quarter profit missed forecasts of 22.9 billion yuan (Bernstein), 24 billion (Goldman Sachs) and 25 to 26 billion (CITIC Lyonnais). [ 3 , 7 ]
- A consumption tax of 2% on lithium-ion batteries has applied since 1 September 2026; the rate is to rise to 4% in September 2027. [ 3 , 4 , 7 ]
- Net cash flow from operations for the first three quarters was 61.625 billion yuan, down 23.60% year on year. [ 4 , 7 ]
- On 21 October CATL's A shares closed at 227.90 yuan and its H shares fell 11.4% to 364.8 Hong Kong dollars, Huxiu reported. [ 7 ]
Confirmed by several sources
- CATL published third-quarter 2026 revenue of 165.221 billion yuan (up 58.58%) and net profit attributable to shareholders of 21.246 billion yuan (up 14.54%) on 20 October. [ 1 , 2 , 3 , 4 , 5 , 7 ]
- Third-quarter gross margin fell to about 20.7%, and net profit was lower than in the second quarter. [ 3 , 4 , 5 , 7 ]
- The third-quarter profit was below market expectations. [ 3 , 4 , 5 , 7 ]
- JPMorgan cut its rating on CATL's H shares to neutral and kept an overweight rating on the A shares. [ 3 , 5 ]
- A 2% consumption tax on batteries started on 1 September 2026 and is to rise to 4% in September 2027. [ 3 , 4 , 7 ]
- The share price fell after the results; on 21 October CATL's A shares closed at 227.90 yuan. [ 5 , 7 ]
Still unclear
- Whether the results beat or missed expectations. IT Home's AI-generated commentary says the results exceeded general market expectations, while Yicai, Huxiu and Jiemian say profit was below expectations and cite analyst forecasts.
- How long the margin and profit pressure will last. According to Huxiu, management said fourth-quarter pressure would be similar to the third and that most factors are short-term and reversible; this is a single-source account, and an investor quoted by Jiemian said bears see falling unit profit as a long-term trend.
- How much profit CATL earned per day. Yicai and Huxiu give about 230 million yuan a day, from the first three quarters; another Huxiu article gives 239 million yuan a day for the third quarter.
- How far carmakers' moves to other suppliers will reduce CATL orders. Huxiu and Jiemian describe carmakers adding suppliers or using in-house batteries, while an investor quoted by Jiemian said customers may not cut CATL orders at once but are renegotiating price, delivery and division of work.
What local media are saying
Timeline, local time
- IT Home published CATL's third-quarter 2026 figures on 20 October. [ 1 ]
- Jiemian reported CATL's announcement of the third-quarter results on 20 October. [ 2 ]
- Yicai published its analysis of the results, noting the share price fall on 20 October, on 21 October. [ 3 ]
- Huxiu published an analysis of CATL's profit pressure and carmakers' supplier changes on 21 October. [ 4 ]
- Huxiu published a piece on 22 October saying CATL's A shares closed at 227.90 yuan on 21 October. [ 7 ]