NIO Inc.

NIO said Q1 2026 total revenues were 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 and down 27.9% quarter over quarter; other sales were RMB 2.7 billion, up 31.2% year over year and down 9.7% quarter over quarter. Vehicle margin was 18.8% versus 10.2% in Q1 last year and 18.1% last quarter; gross margin was 19% versus 7.6% a year ago and 17.5% last quarter; other sales margin was 20.6%. Loss from operations 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 a net loss of 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 equivalents and generated positive operating cash flow. For Q2, management guided to 11,000 to 11,500 deliveries, representing 52.7% to 59.6% year-over-year growth, and reiterated a full-year vehicle margin target of around 17% to 18% and positive non-GAAP operating profit for 2026.

William Li emphasized that NIO’s growth is being driven by a broader, multi-brand product cycle, with the ES8, ES9, ONVO L80/L90, and FIREFLY refreshes supporting both volume and brand positioning. He framed NIO as a premium EV company with differentiated user experience, strong swap/charging infrastructure, and a product portfolio that he believes can keep gaining share in each segment. His tone was confident and expansionary, but he also noted the company is not chasing volume at the expense of margin or brand positioning.

Stanley Qu highlighted the financial step-up in Q1, citing RMB 25.5 billion of revenue, vehicle margin of 18.8%, gross margin of 19%, and positive operating cash flow. He said R&D spending was RMB 1.9 billion and SG&A was RMB 3.5 billion, with both down year over year due to organizational optimization and efficiency gains. He also guided non-GAAP R&D expense to RMB 2 billion to RMB 2.5 billion per quarter, said SG&A should be around 10% of revenue over time though it may vary by quarter, and reiterated the full-year vehicle margin target of around 17% to 18% despite an estimated cost headwind of more than RMB 10,000 per car from materials and components.

Analysts focused on whether ES9 will cannibalize ES8 demand, gross margin durability amid rising material costs, how NIO will keep growing beyond the large-SUV cycle, and whether non-GAAP profitability can be sustained through 2026. Management said ES9 launch interest has actually lifted ES8 orders, with ES8 order intake up 30% after ES9 prelaunch, and argued the two products are clearly differentiated by price and use case. On margins, Stanley said the company will offset cost pressure through richer product mix, stable pricing, selective promotion cuts, and supply-chain engineering improvements. Management also said more than 80% to 85% of cars should use in-house smart-driving chips in the second half, and that NIO remains focused on positive non-GAAP operating profit for the full year.