BYD Profit Drops 55%, Shares Climb as Analysts See Bottom

BYD Company Limited reported a 55% year-over-year decline in first-quarter 2026 net profit to 4.08 billion yuan. Revenue fell 12% from the previous year to 150.2 billion yuan. This revenue figure exceeded analyst expectations despite the annual decrease. Intense competition and heavy investments in global production capacity pressured earnings.

Short-term borrowings surged 72% to 66.3 billion yuan (US$9.7 billion). Unsold product inventory increased 16% over the three-month period.

BYD shares rose in Hong Kong trading following the report. Morgan Stanley and JPMorgan analysts suggested company earnings likely bottomed out this quarter. Market focus now shifts toward future order intake and delivery volumes.