On Thursday, Hesai Group (HSAI.US) climbed more than 7% to $19.15 per share, extending its upward momentum in the US market session.

The rally comes after Hesai Group released its unaudited financial results for the second quarter of 2026. During the quarter, the company generated revenue of RMB 860 million, with GAAP net profit reaching RMB 70.55 million—a 60.0% increase compared to the same period last year. This marks the fifth consecutive quarter of GAAP profitability for Hesai Group.

In a notable development, the company's Strategic Growth Initiatives (SGI) segment recorded its first revenue contribution during the quarter, primarily driven by early commercialization breakthroughs in its power module business. Hesai Group's power modules began generating revenue in Q2, with cumulative deliveries surpassing 10,000 units by the end of the period. The product line is now expanding from dexterous hand modules to full-body joint modules.

Additionally, the company's spatial intelligence platform, Kosmo, has completed its initial prototype deliveries and secured orders from several leading humanoid robotics companies, including Galbot. Revenue from this segment is expected to commence in the third quarter.

Given the better-than-expected commercialization progress and robust market demand for SGI operations, Hesai Group has raised its full-year 2026 SGI revenue guidance to RMB 200-300 million. Looking ahead, the company projects SGI revenue to reach approximately RMB 700 million in 2027, with the segment achieving breakeven profitability.