$NIO

NIO delivered a better-than-expected performance in the fourth quarter of 2025, presenting a notable picture on both profitability and growth. The company reported non-GAAP earnings of $0.04 per share, beating market expectations by $0.05 and marking a meaningful surprise. Revenue was similarly strong. NIO's quarterly revenue reached $4.95B, up 83.3% year over year and $130M above analyst estimates.
On the operational side, the main driver of growth was the acceleration in deliveries. The company delivered 124,807 vehicles in the fourth quarter, up 71.7% from the same period last year and 43.3% from the previous quarter. This strong volume growth, combined with the contribution from the new product mix and operating leverage, also brought a clear improvement in margins. Vehicle margin rose to 18.1%, compared with 13.1% in the same period last year and 14.7% in the previous quarter. Total gross margin also increased to 17.5%, showing a meaningful recovery both year over year and quarter over quarter.
The results the company reported point not only to strong growth, but also to an important turning point in its financial structure. After a period marked by heavy losses, NIO posted quarterly profitability for the first time. Management emphasized that this improvement was driven by higher delivery volume, a more profitable product mix, and tighter control over operating expenses. In particular, the move into non-GAAP operating profitability stands out as a critical threshold, showing that the company has started to use scale economics more effectively.
Data from the first months of 2026 also suggest that this momentum has not completely disappeared. NIO delivered 27,182 vehicles in January and 20,797 in February. That brought total deliveries for the first two months of the year to 47,979 units. The company's cumulative deliveries to date have now reached 1,045,571.
Forward guidance also sends a strong message to the market. NIO expects to deliver between 80,000 and 83,000 vehicles in the first quarter of 2026. That implies year-over-year growth of approximately 90.1% to 97.2%. On the revenue side, the company is guiding for RMB24.482B to RMB25.176B. That represents annual growth of 103.4% to 109.2% and is also above the market consensus of around $3.38B.
The market responded positively to these results. NIO shares rose more than 5% in premarket trading after the release, while there was also a limited positive spillover across Chinese EV makers. Looking at the overall picture, it can be said that NIO not only reported a quarter that beat expectations, but also crossed an important threshold on profitability, showing investors that its operational transformation is now starting to show up more clearly in the financials. As CFO Stanley Yu Qu also emphasized, the focus in 2026 will be on improving efficiency, optimizing the cost structure, and making this performance more sustainable.
..it looks like it is trying to form a good bottoming pattern, something similar to an inverse H+S. ..