The Chinese company specialized in the development of batteries has published results for the first quarter of 2026 that have left analysts speechless. Not because they are good, but because no one saw them coming. And the income has exceeded the forecasts of several analysis firms by 40%. The margin of error is so large that it only shows the obvious: that CATL It has long ceased to be just a battery company.
What the numbers say. In the first quarter of 2026, CATL had a turnover of 129.1 billion yuan (about $18.9 billion), 52.5% more than in the same period of the previous year, according to they count from Reuters. Net profit grew 48.5% to 20.7 billion yuan. Analysts expected revenue growth of 35.7% and profit growth of 20.9%. The reality is that the numbers almost double the estimates.
If the context of the successful year they had in 2025 is added, the image is just as groundbreaking, since according to the annual report The company’s own revenue that year reached 423.7 billion yuan, with a growth of 17%, and net profit rose 42%.
Why analysts They have failed so much. Market consensus continued to treat CATL as a supplier of cells for electric cars. The problem is that this approach ignores two movements that are redefining the company. The first: energy storage, a business with higher margins than vehicle batteries, already represented around a quarter of the product the company shipped in the first quarter.
According to data Production data collected by Hello China Tech, in April storage had climbed to 41.3% of total cell production, up from less than 20% a year earlier. The second movement: internationalization. Approximately a third of CATL’s revenue already comes from outside China.
A Bet that explains everything. Energy storage is not a segment that CATL has joined by inertia. It is the logical consequence of a thesis: the world needs to store renewable energy on a massive scale. The war in Iran has skyrocketed global energy costs and accelerated demand for renewables, making storage systems critical infrastructure.
CATL, which already led that market with a global share of 30.4% in 2025, according to SNE Research (for the fifth consecutive year), has arrived at the exact moment with the necessary capacity. And its shipments of batteries for storage have grown by 80% year-on-year in 2025.
Europe as a lever for internationalization. The Debrecen plant, in Hungary, went into mass production during the first quarter of 2026. An investment of 7.3 billion euros to supply Mercedes-Benz, BMW, Stellantis and Volkswagen, with a planned capacity of 100 gigawatt-hours annually and a planned workforce of 9,000 people. This factory is proof that CATL is not content with being a supplier that exports cells, but rather a manufacturer with an industrial presence in the markets it serves.
At home, dominating like never before. At the same time, CATL has reached a milestone in China that it had not achieved for five years. According to data from the Chinese Passenger Car Association collected According to CarNewsChina, its production share of electric vehicle batteries in the domestic market exceeded 50% in the first quarter of 2026. In the NMC (nickel-manganese-cobalt) type battery segment, that share reaches 81.6%. And in the LFP (lithium-iron-phosphate) segment, where there is more competition, it reaches 41%, the highest level in four years. The world’s second largest manufacturer, BYD, fell to 13.4% global share, from 16% a year earlier.
What CATL is today, beyond batteries. The company itself has been trying to change the story for some time. In your 2025 annual reportstates its ambition to become “a leading global zero-carbon technology company.” It may sound like corporate rhetoric, but it is worth noting that CATL has storage systems deployed in nearly 2,300 projects around the world. Its batteries power artificial intelligence data centers, including SenseTime’s in Shanghai, which the company says reduces electricity consumption by more than 10 million kilowatt-hours annually.
It also has subsidiaries in the electric aviation sector and solutions for maritime transport zero emissions. It operates more than 1,000 battery exchange stations for passenger cars and more than 300 for heavy trucks. And it is building what it describes as the world’s first zero-carbon off-grid industrial park, in Shandong.
ANDThe market has not yet it has finished processing. It’s not all good news. Morningstar analyst Vincent Sun warns that the automakers’ strategy of diversifying suppliers and cutting costs could “dilute CATL’s pricing power and put pressure on its unit profit.” When you are the dominant supplier, customers have incentives to reduce their dependence. Here it would be necessary to see if CATL’s diversification towards storage, energy services and internationalization builds a sufficient barrier.
Cover image | CATL
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