The stock market is seeing a pullback in AI and technology stocks as investors react to high oil prices and shifting data. For a high-growth company like WeRide that is not yet profitable, these market-wide shifts often lead to sharper price drops as people move money toward safer investments.
WeRide was honored at the 2026 World Intelligent Connected Vehicles conference for its AI technology. The award highlights the company's Physical AI system, which uses real-world data to train the software that drives its robotaxis and buses. While industry awards are common, this recognition focuses on the company's ability to apply high-level self-driving technology to more common driver-assistance systems. This flexibility is a key part of the plan to sell its software to traditional carmakers.
Barclays set a $4 target for the stock, which is close to where it currently trades. This is significantly lower than the average analyst target of $9, suggesting a more cautious view of the company's near-term path to profitability or its valuation compared to other firms.
Management has a history of setting a low bar and clearing it with ease. However, a recent wide miss suggests the business is becoming harder to forecast as it expands into new markets.
Earnings history
EstimateBeatMiss
WeRide past earnings results
Expected
Actual
Surprise
EPS
$-0.13
$-0.18
-37.7%
Revenue
$26M
$34M
+31.1%
Key highlights
Overseas sales surging: Revenue from markets outside of China grew 154.4% in the first half of the year as the company launched its robotaxi and bus services in 13 countries. This expansion is helping margins improve because these international projects carry higher profit than domestic ones.
Robotaxi efficiency improving: Average daily rides for each vehicle rose 24% to more than 21 per day in the second quarter. Reaching higher ride counts per car is essential for making the business profitable, as the company saw peak daily rides hit 28 in certain areas.
Driving technology delivery growth: Deliveries of the company's driver assistance software for mass market cars reached 30,000 units in the second quarter. The business has now secured production contracts for over 30 different vehicle models, and management expects these partnerships to be a major contributor to future profits.
Cash reserves declining: The company's total cash and investments dropped 24.3% in six months to 5.4 billion RMB. This reflects the ongoing cost of running the business, though the half-year EBITDA loss, a measure of core cash loss, narrowed by 6.5% to 667 million RMB compared to last year.
European expansion ahead: Management expects to launch the first commercial robotaxi service in Madrid by the end of 2026 and start public transport services in Denmark in the first half of 2027. These launches are part of a strategy to enter new markets with lower costs by using an asset-light model that relies on partners like Uber and local bus operators.
Our take: A strong quarter that shows the business is moving faster than its heavy losses suggest. The 73.3% revenue growth and rising vehicle utilization prove there is real demand for autonomous driving. While the company is still burning through cash, the rapid overseas expansion and software wins strengthen the long-term case for its technology platform.
WeRide’s next earnings date
Q3 2026
NOV
23
Expectation
EPS
$-0.11
Revenue
$41M
Metrics we are tracking
Metric
Expectations
Status
Average Daily Rides
Reaching 30 rides per vehicle in core hubs
21 rides per vehicle in Q2 2026
L2++ Design Wins
Securing production contracts for over 50 vehicle models
30 models as of H1 2026
Overseas Revenue Mix
Increasing to over 50% of total revenue
154% YoY growth in H1 2026
Cash Burn Rate
Quarterly EBITDA loss narrowing toward RMB 300 million
RMB 667M EBITDA loss in H1 2026
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