CATL Reports Record-Breaking Financials: Energy Storage Soars 88% as New Growth Engine, Goldman Sachs Maintains Buy Rating

Global battery leader CATL (300750-CN, 03750-HK) released its Q2 2026 financial results, reporting quarterly revenue of CNY 147.79 billion, a 57% year-on-year increase, and net profit of CNY 22.55 billion, up 36% YoY—both figures setting new single-quarter records and meeting market expectations.

Goldman Sachs noted that although short-term fluctuations in unit profitability may occur due to raw material costs and product mix adjustments, CATL continues to demonstrate strong market leadership, driven by sustained volume growth, robust cash flow, and rapid expansion of its energy storage business.

CATL’s total battery sales reached 435 GWh in the first half of 2026, a year-on-year increase of approximately 60%, with Q2 maintaining the same high growth momentum. Notably, the energy storage segment has become the company’s most significant structural strength. Energy storage revenue for the first half reached CNY 53.26 billion, soaring 88% YoY, with overseas orders accounting for nearly half of total demand, widely covering markets in Europe, the U.S., and the Asia-Pacific region.

CATL is actively transforming from a standalone battery cell manufacturer into a comprehensive energy solutions provider encompassing system integration and after-sales services. This business model extension is seen as key to future valuation re-rating.

Largest-Ever A-Share Buyback in History Demonstrates Long-Term Investor Confidence

To enhance shareholder returns and optimize capital structure, CATL announced a share repurchase program for its A-shares worth between CNY 20 billion and CNY 40 billion. This not only marks a record high for the company but is also considered one of the largest buyback actions in A-share market history.

Supported by a strong balance sheet with net cash of CNY 226.38 billion at the end of the period, the buyback program has successfully provided short-term support for the stock price, reflecting management’s strong confidence in the company’s sales growth over the next five years. This marks CATL’s formal transition from a pure growth stock to a high-quality asset combining growth, cash flow, and high returns.

In response to the digitalization trend, CATL is extending its business reach into power solutions for AI data centers (AIDC), leveraging its technological expertise in energy storage and power electronics to offer end-to-end zero-carbon energy deployment for customers. These solutions are expected to enter large-scale commercialization within the next one to two years.

Additionally, the company is making rapid progress in its technological reserves in the sodium-ion battery field, with the advantage of flexible production capacity switching, further strengthening its moat in energy technology.

Goldman Sachs Maintains 'Buy' Rating, Highlighting Strong Upside Potential

In its latest report, Goldman Sachs emphasized that CATL’s fundamentals remain solid, with demand and capacity in tight balance and effective cost pass-through mechanisms. The firm maintains its 'Buy' rating, setting a target price of CNY 565 for A-shares and HKD 947 for H-shares, implying approximately 47.5% and 52.3% upside potential, respectively.