Gasgoo Munich- On May 21, NIO released its first-quarter 2026 earnings report, reporting total revenue of 25.53 billion yuan and operating profit of 66.8 million yuan. The company delivered 83,000 units. new vehicles during the period. Following the results, NIO's U.S.-listed shares rose more than 6% in pre-market trading.
The first quarter placed pressure on the broader new-energy vehicle sector. Data from the China Association of Automobile Manufacturers shows production and sales dropped 6.8% and 3.7% year-on-year, respectively, while the China Passenger Car Association notes industry profit declined 18%. Nearly 70 models saw price cuts, with the average discount hitting 38,000 yuan — a 13.7% drop. Amid this pressure, NIO's results offer a new case study for the market.
Profit for Two Consecutive Quarters; Structure Optimized
NIO posted an operating profit of 66.8 million yuan for the quarter, its second consecutive profitable period. Total revenue jumped 112.2% year-on-year to 25.53 billion yuan, exceeding the high end of its 24.48 billion to 25.18 billion yuan guidance. Gross profit increased 428.4% to 4.86 billion yuan.
On the delivery front, NIO Group delivered 83,465 vehicles in the first quarter — a 98.3% surge from last year. The flagship NIO brand accounted for 58,543 of those, while the Onvo brand maintained its trend with 13,339 deliveries. Firefly, in its debut quarter, delivered 11,583 units, indicating early market adoption of the small premium EV category. Moving into April, monthly deliveries hit 29,356 units, pushing cumulative deliveries past 1.11 million by the end of the month.
Image Source: NIO
Margins reached a four-year high. NIO's comprehensive gross margin reached 19.0%, while vehicle gross margin climbed to 18.8% — the latter rising for four consecutive quarters on a quarterly basis. Gross margin from other sales also reached a four-year best, coming in at 20.6%.
The improvement in profit quality extends beyond vehicle sales. CFO Qu Yu noted that as the user base expands, profitability in parts, after-sales service, and energy replenishment has improved steadily, lifting the gross margin for other sales to 20.6%. Even as revenue doubled, cost control proved effective: R&D expenses for the quarter fell 40.7% to 1.885 billion yuan. The company attributed this drop to lower personnel costs following organizational restructuring and adjusted pacing for R&D projects.
Image Source: NIO
Looking ahead, NIO offered a positive outlook for the second quarter. It forecasts deliveries between 110,000 and 115,000 units — a 52.7% to 59.6% increase — and revenue between 32.78 billion and 34.44 billion yuan, up 72.4% to 81.2%.
NIO targets 40% to 50% sales growth for the full year 2026, implying annual deliveries of roughly 460,000 to 490,000 units. Underpinning that target is a sustained expansion in its product cycle. With the flagship ES9 SUV and several refreshed models launching, the share of high-end vehicles is set to rise, optimizing the product mix and driving overall margin improvement.
Beyond the Numbers: NIO's Q1 Strategy
The financial figures reflect a quarter of aggressive product updates and strategic positioning.
Image Source: NIO
On the product front, NIO officially unveiled the ES9 — a technology-centric executive flagship SUV — in April 2026, simultaneously opening pre-orders. The vehicle comes in three trims: Executive Luxury, Executive Signature, and Horizon Special Edition, with pre-sale prices starting from 528,000 yuan. The company announced that the ES9 will officially launch and begin deliveries on May 27.
As the main NIO brand consolidates its high-end positioning, its Onvo subsidiary maintained a fast pace of product launches through the first quarter and May. On the eve of the earnings report, Onvo celebrated its second anniversary, with cumulative deliveries approaching 150,000 units — having surpassed 100,000 deliveries in its first full year, 2025.
In May, Onvo rolled out several new models. On May 9, the 2026 Onvo L90 began nationwide deliveries with a starting price of 265,800 yuan. Just days later, on May 15, the brand's third model — the L80, a large five-seat SUV — officially launched starting at 242,800 yuan. The lineup is still expanding: the 2026 Onvo L60 is set to open pre-orders at the end of May and launch in June. With this, Onvo has established a complete lineup consisting of the L60, L80, and L90, covering segments from entry-level mid-size SUVs to large flagship SUVs.
Additionally, NIO's Firefly brand introduced the "Millennium Wave" special edition in the first quarter. Priced at 137,800 yuan and limited to 166 units, the release diversifies the brand's portfolio.
On the infrastructure front, official data from the L80 launch reveals NIO has built 8,865 power and swapping stations, comprising 3,847 battery swap stations and 5,018 charging stations. The company plans to add 1,000 new swap stations throughout 2026. NIO is also working with CATL to establish national standards for battery swapping, promoting cross-brand compatibility. This network is becoming a key component of NIO's service ecosystem.
Regarding global expansion, NIO has fully entered core European markets including Germany, Norway, the Netherlands, Sweden, and Denmark. Key models like the EL8, EL6, ET5, and ET5 Touring are now on sale there. The company is accelerating its European footprint using a hybrid model of direct sales and national dealerships, and plans to introduce Firefly to the region to further complete its global portfolio.
Image Source: NIO
Separately, NIO announced its formal entry into the Middle East and North Africa, with deliveries in the United Arab Emirates set to begin in the fourth quarter. Operations will be conducted through "NIO MENA," a joint venture with CYVN.
The first-quarter earnings and operational updates highlight NIO's strategy of building multi-layered growth through a three-tier brand structure — high-end for NIO, family-focused for Onvo, and personalized for Firefly — supported by continuously expanding infrastructure. The improved profit structure, with rising margins in both vehicle and non-vehicle sectors, reflects a broader shift from a sales-dominated revenue model to a diversified engine driven by "vehicles + services + energy."
Conclusion:
From a single brand to a three-brand collaboration, and from pure vehicle sales to a diversified "vehicle-plus-services-plus-energy" revenue mix, NIO's foundation for profitability is becoming increasingly strong. As new products roll out and the battery-swapping network expands, the company's growth trajectory is becoming clearer.
