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    NIO
    Earnings call· Mar 2026(Q1 FY26)

    NIO Q1 FY26 earnings call NIO

    May 21, 2026 Source

    Executive summary

    NIO Inc. Q1 FY26 — Strong Delivery Growth and Margin Improvement

    NIO delivered robust Q1 FY26 results, driven by strong EV delivery growth and significant margin expansion across both vehicle and other sales segments. The company is navigating rising material costs through strategic product mix and supply chain optimization, while continuing an aggressive product launch cycle across its NIO, ONVO, and FIREFLY brands. Commitment to BEV and full-stack technology development underpins its long-term competitiveness and premium brand positioning.

    Highlights

    5

    • Total smart EV deliveries reached 83,465 units in Q1 FY26, representing a year-over-year increase of 98.3%.

    • Gross margin improved to 19% in Q1 FY26, up from 7.6% in Q1 FY25 and 17.5% in Q4 FY25.

    • Vehicle margin reached 18.8%, marking the fourth consecutive quarter of improvement.

    • Other sales margin achieved a record high of 20.6% in the past four years.

    • The company maintained positive non-GAAP operating profit (RMB 66.8 million) and positive operating cash flow in Q1 FY26.

    Concerns

    3

    • Rising material costs, including memory chips, battery materials, copper, and aluminum, are expected to increase cost per unit by over RMB 10,000 starting Q2 FY26.

    • SG&A expenses surged in Q2 FY26 due to intensive product launch and marketing activities, though expected to normalize in H2 FY26.

    • ONVO brand awareness remains a challenge, currently comparable to NIO's awareness level in 2020.

    Guidance & targets

    6
    CategoryTargetConfidence
    Total Deliveries
    11,000 to 11,500 units
    high materiality
    High
    Vehicle Margin
    around 17% to 18%
    high materiality
    High
    Non-GAAP Operating Profit
    positive
    high materiality
    High
    Non-GAAP R&D Expenses
    around RMB 2 billion to RMB 2.5 billion
    medium materiality
    High
    Other Sales Margin
    20%
    medium materiality
    High
    Power Swap Stations
    more than 1,000
    medium materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    NIO brand
    NIO brand maintained leadership in the premium BEV segment, with the ES8 achieving significant delivery milestones and market share.
    Deliveries: 58,543 vehiclesMarket Leadership: #1 in China's BEV segment priced above RMB 300,000ES8 Delivery Milestone: 100,000 units in 215 days (fastest above RMB 400,000)ES8 Market Position: #1 in large SUV and passenger vehicle segment above RMB 400,000 for 5 consecutive monthsES8 Market Share: 49.7% in large SUV priced above RMB 400,000
    		————
    ONVO brand
    ONVO brand continued strong market momentum, with the L90 leading its segment and new products like the L80 expanding its market reach.
    Deliveries: 13,339 vehiclesL90 Market Position: #1 in large SUV segment priced between RMB 200,000 and RMB 300,000
    		————
    FIREFLY brand
    FIREFLY brand maintained its dominant position in the high-end small car market.
    Deliveries: 11,583 vehiclesMarket Position: #1 in China's high-end small car segmentMarket Share: 2/3 of the high-end small car market
    		————
    Shanghai Passenger Vehicle Market
    The company's total sales topped the passenger vehicle market in Shanghai for the first four months of the year.
    Market Share: 8%
    		————

    Operational metrics

    27
    Total Revenues
    RMB 25.5 billionup 112.2% YoY, down 26.3% QoQ
    Q1 FY26

    Year-over-year growth was mainly due to increased deliveries and a higher average selling price. Quarter-over-quarter decrease was mainly due to fewer deliveries.

    Vehicle Sales
    RMB 22.8 billionup 129.2% YoY, down 27.9% QoQ
    Q1 FY26

    Year-over-year growth was mainly due to increased deliveries and a higher average selling price, driven by positive product mix effects. Quarter-over-quarter decrease was mainly due to fewer deliveries.

    Other Sales
    RMB 2.7 billionup 31.2% YoY, down 9.7% QoQ
    Q1 FY26

    Year-over-year growth was driven by increased sales of parts, accessories, aftersales vehicle services, power solutions, and auto financing services. Quarter-over-quarter decrease was due to a decrease in revenues from technical R&D services and used car sales.

    Gross Margin
    19%vs 7.6% in Q1 FY25, vs 17.5% in Q4 FY25
    Q1 FY26

    Improved due to improvements in both vehicle and other sales margin.

    Vehicle Margin
    18.8%vs 10.2% in Q1 FY25, vs 18.1% in Q4 FY25
    Q1 FY26

    Improvements driven by a more favorable product mix, especially higher contribution from ES8 (50% of margin, >20% vehicle margin itself). Advanced inventories partially offset rising material costs.

    Other Sales Margin
    20.6%highest in 4 years
    Q1 FY26

    Reflecting continuing profitability improvement in user base-driven service and community-related businesses.

    R&D Expenses
    RMB 1.9 billiondecreased 40.7% YoY, decreased 7% QoQ
    Q1 FY26

    Year-over-year decrease mainly due to lower personnel costs, reduced design and development costs, and improved operational efficiency. Quarter-over-quarter decrease also due to lower design and development costs and improved operational efficiencies.

    SG&A Expenses
    RMB 3.5 billiondecreased 20.5% YoY, decreased 1.1% QoQ
    Q1 FY26

    Year-over-year decrease mainly due to lower personnel costs and related expenses in marketing and supporting functions, as well as reduced sales and marketing activities. Quarter-over-quarter expenses stayed stable.

    Loss from Operations (GAAP)
    RMB 0.3 billionvs loss of RMB 6.4 billion in Q1 FY25, vs profit of RMB 0.8 billion in Q4 FY25
    Q1 FY26

    GAAP operating loss.

    Adjusted Profit from Operations (Non-GAAP)
    RMB 66.8 million
    Q1 FY26

    Excluding share-based compensation expenses.

    Net Loss (GAAP)
    RMB 0.3 billionvs net loss of RMB 6.8 billion in Q1 FY25, vs net profit of RMB 0.3 billion in Q4 FY25
    Q1 FY26

    GAAP net loss.

    Adjusted Net Profit (Non-GAAP)
    RMB 43.5 million
    Q1 FY26

    Excluding share-based compensation expenses.

    Cash and Cash Equivalents, Restricted Cash, Short-term Investments, Long-term Time Deposits
    RMB 48.2 billion
    Q1 FY26 end

    Total cash reserves at the end of the quarter.

    NIO Brand Average Selling Price
    RMB 390,000RMB 50,000 higher than BMW, 50% higher than Audi
    Q1 FY26

    Reflects premium positioning compared to traditional luxury brands.

    ONVO Brand Average Selling Price
    RMB 240,000
    Q1 FY26

    Comparable with many Tier 2 luxury brands.

    FIREFLY Brand Average Selling Price
    50% highervs other small car competitors
    Q1 FY26

    Indicates premium positioning within the small car market.

    Urban NOP Mileage Increase
    92%QoQ
    Q1 FY26

    Following the rollout of the new NWM version.

    Smart Driving Usage Time Increase
    116%QoQ
    Q1 FY26

    Following the rollout of the new NWM version.

    Power Swap Stations
    3,916
    as of Q1 FY26

    Total number of power swap stations globally.

    Power Chargers and Destination Chargers
    >28,000
    as of Q1 FY26

    Total number of charging facilities.

    Power Swap Station Average Swaps (Peak)
    45
    peak hours

    Average swaps per station during holidays or busy hours.

    Power Swap Station Average Swaps (Normal)
    30
    average days

    Average swaps per station on normal days.

    Carbon Footprint Reduction Target
    43%from 2023 baseline
    by 2035

    Target for reducing carbon footprint per vehicle.

    X1931 Chip Shipments
    >250,000
    to date

    Total mass-produced X1931 chips shipped to products since March.

    X1931 Chip Deployment Target
    >80-85%
    H2 FY26

    Target percentage of cars to be equipped with in-house developed smart driving chips.

    ES8 Order Intake Increase
    30%after ES9 test drive started
    week-over-week

    Increase in order intake for ES8 following the prelaunch and test drive of ES9.

    ES8 Order Intake
    new history highsince October
    first 20 days of May

    Order intake for ES8 reached a new high since October, indicating strong demand.

    Industry KPIs

    4
    MetricValueDetails
    Order book backlogincreased by 30%%
    Average transaction priceRMB 390,000RMB
    Vehicle deliveries wholesales83,465units
    Ev unit volumes mix segment economics83,465units

    Product announcements

    9
    ProductTypeDetails
    2026 ES6, EC6, ET5, ET5Tlaunch
    New ES9launch
    2026 L90update
    ONVO L80launch
    NIO L60update
    FIREFLY Refreshed Modelupdate
    New Road Model (NWM)update
    NWM Upgradeupdate
    Fifth Generation Power Swap Substationlaunch

    Risks & headwinds

    3
    Rising material costsstarting Q2 FY26 and beyond

    over RMB 10,000 per car

    Mitigation: Increase product mix of higher-margin models (ES8, ES9); maintain stable pricing and promotional policies; work with supply chain partners on engineering improvement, efficiency improvement, and commercial negotiations to identify 5-10% optimization opportunities.

    SG&A expenses surge due to product launchesQ2 FY26

    absolute amount in Q2 had a surge

    Mitigation: Expected to be relatively lower in Q3 and Q4 as new products are already in the market.

    ONVO brand awareness

    current awareness is basically on par with the awareness of the NIO brand in the year of 2020

    Mitigation: Collaborating with celebrities to promote products and brands; front-line teams engaging in door-to-door promotions and inviting users for test drives; takes time to build brand awareness but shows efficient conversion once known.

    What to watch in Q2 FY26

    5

    ES9 Delivery Performance

    next quarter
    CurrentLaunch and deliveries begin May 27
    TargetStrong performance in executive flagship SUV segment above RMB 500,000

    Why it matters

    ES9 is expected to be a key driver for volume and margin, and its market reception will indicate NIO's ability to compete in the ultra-premium segment.

    [Interpreted] The ES9 will officially launch and begin deliveries on May 27, and we are confident that the ES9 will set a new benchmark in the flagship executive SUV market priced above RMB 500,000.

    Q&A highlights

    5

    What is the order flow for the ES9 during presale, its expected monthly volume, and potential impact on ES8 orders? Also, what is the Q2 and full-year gross margin guidance given rising costs?

    Management expressed confidence in ES9's performance in the executive flagship SUV segment and noted that ES9's prelaunch positively impacted ES8 order intake, with ES8 orders increasing 30% week-over-week after ES9 test drives began. For gross margin, despite rising material costs (over RMB 10,000 per unit impact), the company targets 17-18% vehicle margin for Q2 and full-year through product mix, stable pricing, and supply chain optimization.

    “[Interpreted] One week after the ES9 launch, actually, the order intake for the ES8 increased by 30%. And the starting -- since the test started from May 1, within 1 week of the quarter -- the week-over-week, ES8 order intake increased by 30%.”

    asked by Bin Wang · answered by Bin Li

    2 min read5 chapters

    Detailed Narrative

    01

    Multi-Brand Product Strategy and Market Positioning

    NIO is executing a multi-brand strategy with NIO, ONVO, and FIREFLY targeting distinct market segments. The NIO brand focuses on premium BEVs above RMB 300,000, with the ES8 setting delivery records and the new ES9 launching to redefine the executive SUV segment above RMB 500,000. ONVO targets the RMB 200,000-RMB 300,000 large SUV market, with the L90 leading its segment and the L80 launched as a revolutionary 5-seater SUV. FIREFLY dominates the high-end small car segment, with its refreshed model already in Q2 deliveries. This diversified portfolio aims to capture market share across various price points and user needs.

    02

    Advancements in Smart Driving and In-House Technology

    The company rolled out a major new version of its New Road Model (NWM) powered by an advanced architecture, significantly enhancing the full-scenario Navigate on Pilot (NOP) experience. Urban NOP mileage increased by 92% quarter-over-quarter, and smart driving usage time by 116%. NIO's in-house developed smart driving chip, X1931 (world's first automotive-grade 5nm process chip), has shipped over 250,000 pieces and is being deployed across ONVO's new products. By H2 FY26, over 80-85% of NIO's cars are expected to be equipped with this chip, enhancing competitiveness and R&D efficiency.

    03

    Sales, Service Network Expansion, and Power Infrastructure

    NIO continues to expand its sales and service network, operating 168 NIO Houses, 389 NIO Spaces, 430 ONVO stores, 408 service centers, and 90 delivery centers. The company maintains its commitment to power infrastructure, with 3,916 power swap stations and over 28,000 power chargers worldwide. A target of building over 1,000 new power swap stations this year, with the fifth-generation power swap substation rolling out at scale in Q3, underscores the focus on enhancing user convenience and network density.

    04

    Cost Management and Supply Chain Optimization

    Facing rising material costs (memory chips, battery materials, copper, aluminum) expected to add over RMB 10,000 per unit, NIO is implementing strategies to mitigate impact. These include increasing the product mix of higher-margin models (ES8, ES9), maintaining stable pricing for other products, and working closely with supply chain partners. The company aims to identify 5-10% optimization opportunities through transparent supply chain practices and a 'primary and preferred partners' mechanism to offset raw material cost pressures.

    05

    ESG Commitment and Carbon Reduction Targets

    NIO released its 2025 environmental, social, and governance report, announcing a greenhouse gas emissions reduction target. The company aims to reduce the carbon footprint per vehicle by 43% by 2035, using a 2023 baseline. This commitment aligns with its mission to deliver high-performance smart EVs and exceptional user experiences while building a sustainable future.

    AI-generated summary of the company’s earnings call. Not investment advice.