EL7.AI
StocksMedium•22 October 2026•
3 min read

CATL third-quarter profit rises 14.54%, misses estimates

Key Facts

1CATL's third-quarter revenue reached 165.22 billion yuan, up 58.58% year on year.
2Net profit attributable to shareholders rose 14.54% year on year to 21.25 billion yuan in the third quarter.
3Third-quarter net profit growth estimates had pointed to a 41.2% year-on-year increase.
4Third-quarter net profit fell 5.77% from the previous quarter.
5CATL's Hong Kong-listed shares fell 7.8% in early trading on October 21, 2026.

Net profit attributable to shareholders at CATL rose to 21.25 billion yuan in the third quarter of 2026, up 14.54% year on year, according to results reported by CnEVPost. Profit growth fell short of London Stock Exchange Group's SmartEstimate forecast of a 41.2% year-on-year increase, according to Reuters' coverage of the company's results. Quarterly revenue reached 165.22 billion yuan, up 58.58% from the same period a year earlier, outpacing net profit growth. But the revenue increase also fell short of expectations for 60.2% year-on-year growth, according to Reuters, leaving both sales and profit below analysts' estimates. On a quarterly basis, net profit fell 5.77% from the second quarter, although it remained above its level in the corresponding period last year.

The third-quarter results marked a slowdown in annual profit growth from the second quarter, when the company reported a 36.5% increase, according to Reuters. The agency described third-quarter profit growth as "the slowest in nearly two years," placing the latest results in the context of the company's earnings trajectory over a longer period. Annual revenue growth, meanwhile, accelerated from the second quarter, when sales rose 56.9%, putting sales and profit growth on diverging paths. Against the backdrop of an expanding energy storage market, CATL Chairman Robin Zeng discussed growth in global battery shipments for the sector in a speech published by the company on October 15, 2026. Citing SNE Research data, Zeng said "global energy storage battery shipments rose 71% year on year in the first half."

Jefferies analysts attributed the pressure on earnings to several factors, including a higher share of energy storage system sales in CATL's sales mix, according to Dow Jones' account of their analysis of the quarterly results. The analysts also cited tax pressures, increased research and development spending and inventory write-downs as factors that weighed on profit during the period. In the market reaction following the results, the company's Hong Kong-listed shares fell 7.8% in early trading on Wednesday, October 21, 2026, according to Dow Jones. The shares reached HK$378.8 during Wednesday's trading, a 15-month low, according to Investing.com. On analyst ratings, JPMorgan downgraded CATL's Hong Kong-listed shares from "overweight" to "neutral," according to the same website. The bank also cut its share-price target from HK$725 to HK$500 alongside the rating change.

Analysts' revisions extended to the outlook, with Citi lowering its price target for CATL's Hong Kong-listed shares, according to Investing.com. The bank also cut its earnings estimates for the company for 2026 through 2028, extending the revisions beyond the year of the current quarterly results. On business plans, CATL announced a heavy-duty truck battery-swapping trial in a partnership statement with Kuehne+Nagel published on September 18, 2026. The trial includes the use of "Qiji" battery-swapping solutions as part of the cooperation outlined by the company in the partnership announcement. The trial is scheduled to launch in China this year, according to the timetable announced by CATL.