NIO Inc.

NIO reported Q1 2026 total revenue of RMB 25.5 billion, up 112.2% year over year and down 26.3% quarter over quarter. Vehicle sales were RMB 22.8 billion, up 129.2% year over year; other sales were RMB 2.7 billion, up 31.2% year over year. Gross margin was 19.0% versus 7.6% a year ago, with vehicle margin at 18.8% versus 10.2% and other sales margin at 20.6%. Operating loss was RMB 0.3 billion versus a loss of RMB 6.4 billion a year ago; adjusted operating profit was RMB 66.8 million. Net loss was RMB 0.3 billion versus RMB 6.8 billion a year ago; adjusted net profit was RMB 43.5 million. The company ended with RMB 48.2 billion in total cash and cash equivalents, restricted cash, short-term investments and long-term time deposits. For Q2, management guided to total deliveries of 111,000 to 115,000 units, implying year-over-year growth of 52.7% to 59.6%. Full-year 2026 targets include positive non-GAAP operating profit, vehicle margin of around 17% to 18%, and other sales margin of 20%.

William Li framed the quarter as evidence that NIO’s multi-brand strategy is gaining traction, pointing to strong deliveries across NIO, ONVO and FIREFLY and saying the company is entering an intensive launch and delivery cycle in Q2. He emphasized that the portfolio is increasingly differentiated by price and use case, and argued that new launches such as ES9 and L80 should add to, rather than cannibalize, existing demand. His tone was confident and strategic, with repeated emphasis on premium positioning, long-term innovation capability, and confidence in achieving the year’s business targets.

Stanley Qu highlighted the scale of the rebound in revenue, the margin improvement, and a stronger cost structure. He said vehicle margin improved to 18.8% from 10.2% a year ago, gross margin reached 19.0%, R&D fell to RMB 1.9 billion, and SG&A fell to RMB 3.5 billion; the quarter also produced positive operating cash flow and ended with RMB 48.2 billion in cash and investments. He warned that industry-wide material cost pressure, including memory chips, lithium carbonate, NCM, copper and aluminum, is expected to add more than RMB 10,000 per vehicle starting in Q2, but said the company still aims for 17% to 18% vehicle margin for Q2 and the full year through mix, pricing discipline and supply chain work.

Analysts focused heavily on ES9 demand, whether it would cannibalize ES8, and how NIO would defend margins amid higher input costs. Management said ES9 prelaunch traffic has actually helped ES8, with ES8 order intake up 30% after ES9 prelaunch and a new high in early May, and argued the two models are priced and positioned differently. On margins, management said the full-year vehicle margin target remains 17% to 18% despite more than RMB 10,000 of per-car cost pressure, while on profitability they reiterated a full-year goal of positive non-GAAP operating profit and said R&D should stay around RMB 2 billion to RMB 2.5 billion per quarter.