CATL's first-half profit rises 42% as storage revenue nearly doubles

CATL posted $6.37 billion in first-half net profit, up 42%, with energy storage revenue up 88%, and approved a buyback of up to 40 billion yuan.

Battery giant CATL reported net profit attributable to shareholders of 43.28 billion yuan ($6.37 billion) for the first half of 2026, up 41.98% year-on-year, on revenue of 276.92 billion yuan, up 54.80%. Its power battery business brought in 192.12 billion yuan and its energy storage business 53.26 billion yuan \u2014 the storage line growing 87.54%, nearly double a year earlier. Overall gross margin was 23.93%, down about a percentage point.

The company's board approved a share buyback of between 20 billion and 40 billion yuan of A-shares, capped at 573 yuan per share, with repurchased shares to be canceled. CATL reported 372.05 billion yuan in cash and held 42.70% of China's power battery market in June 2026.

Scale and profitability at this level are what push battery costs down the learning curve. As CATL's volumes rise \u2014 particularly in energy storage, the segment growing fastest here \u2014 the per-unit cost of the cells that power EVs and grid storage tends to fall, which is the mechanism that makes both cleaner mobility and firmed renewable electricity cheaper over time.

The figures come from CATL's own half-year report. The buyback still needs shareholder approval and would be implemented within 12 months if approved. Watch whether the storage growth rate holds and whether the modest margin compression continues as the company expands.

Source: CnEVPost