Chinese electric vehicle maker Nio Inc. (NYSE:NIO) shares rose Tuesday after the company reported strong fiscal fourth-quarter results, driven by higher vehicle deliveries, expanding margins and improving profitability.
Revenue And Earnings Beat Expectations
The company reported quarterly revenue of 34.65 billion yuan ($4.95 billion), up 75.9% year over year and 59.0% sequentially. The figure exceeded the analyst consensus estimate of $4.61 billion.
Excluding one-time items, adjusted earnings came in at 0.29 yuan (4 cents) per ADS. That result improved significantly from a loss of 3.17 yuan per ADS a year earlier and topped expectations for a 5-cent loss.
Vehicle deliveries reached 124,807 units in the quarter, rising 71.7% year over year and 43.3% from the prior quarter. As a result, vehicle revenue increased 80.9% year over year and 64.6% sequentially.
Competitive Position And Delivery Momentum
Nio, often referred to as the "Tesla of China," remains a major competitor to Tesla, Inc. (NASDAQ:TSLA).
For comparison, Tesla delivered a record 418,227 vehicles globally in the fourth quarter, although that figure declined 16% year over year.
Nio delivered 27,182 vehicles in January and 20,797 vehicles in February 2026. As of Feb. 28, 2026, the company had delivered 47,979 vehicles this year, bringing cumulative deliveries to 1,045,571 units.
Margin Expansion And Balance Sheet Strength
Profitability improved during the quarter as margins expanded.
Gross margin rose to 17.5%, up from 11.7% a year earlier and 13.9% in the previous quarter. The improvement was mainly driven by a more favorable product mix.
Vehicle margin reached 18.1%, compared with 13.1% in the prior year and 14.7% in the previous quarter.
As of Dec. 31, 2025, the company held 45.9 billion yuan ($6.6 billion) in cash and cash equivalents, restricted cash, short-term investments and long-term time deposits.
Management Highlights Product Momentum
Founder, chairman and CEO William Bin Li said the company's product lineup gained stronger recognition across market segments in 2025.
The All-New ES8 maintained strong delivery momentum and set a monthly delivery record among vehicles priced above 400,000 yuan, while the ONVO L90 became the best-selling large battery-electric SUV in 2025, Li said.
He added that the Firefly model continued to lead the premium small car segment after launch.
Li also said the company's internally developed smart EV technologies reached mass production and deployment, helping improve product competitiveness while lowering costs.
Looking ahead, he said the company plans to continue investing in core technologies in 2026, launch new models, expand its battery-swapping and charging network, and upgrade its sales and service network.
Chief Financial Officer Stanley Yu Qu said the company recorded adjusted operating profit of 1.25 billion yuan for the first time in a single quarter, marking an important milestone.
Outlook Signals Continued Growth
For the first quarter of 2026, Nio expects vehicle deliveries between 80,000 and 83,000 units. That would represent growth of about 90.1% to 97.2% compared with the same period in 2025.
The company forecasts quarterly revenue between 24.48 billion yuan ($3.50 billion) and 25.18 billion yuan ($3.60 billion). The guidance implies year-over-year growth of about 103.4% to 109.2% and exceeds the $2.97 billion analyst consensus estimate.
NIO Price Action: Nio shares were up 7.49% at $5.31 during premarket trading on Tuesday, according to Benzinga Pro data.
Photo by Robert Way via Shutterstock
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