Nio Stock Rises 15% on Surprise Quarterly Profit

Nio Achieves First-Ever Quarterly Profit of RMB 282.7M

Chinese electric vehicle maker Nio Inc. reported its first-ever quarterly net profit in its fourth-quarter 2025 results, marking a significant operational turning point for the company. For the quarter ending December 31, 2025, Nio posted a net profit of RMB 282.7 million (US$40.4 million), a stark reversal from the RMB 7.1 billion loss in the same period a year prior. The company also achieved a non-GAAP operating profit of RMB 1.25 billion (US$178.9 million).

This profitability was driven by record vehicle deliveries and improving margins. Nio delivered 124,807 vehicles in Q4, pushing quarterly revenue to RMB 34.65 billion (US$4.95 billion), an increase of 75.9% year-over-year. The company's vehicle margin expanded to 18.1% from 13.1% a year earlier, while its overall gross margin grew to 17.5%, up from 11.7% in Q4 2024.

We achieved non-GAAP operating profit of RMB1,251.3 million for the first time on a quarterly basis in the fourth quarter of 2025, marking a major milestone in our operating performance.

— Stanley Yu Qu, NIO’s chief financial officer.

Stock Climbs 15% as Results Boost Investor Confidence

Investors responded decisively to the positive financial results. On March 10, following the earnings announcement, Nio's U.S.-listed shares closed up 15.38% at $5.70 on trading volume of 145.1 million shares, more than triple the three-month average. The momentum continued into the following week, with the stock climbing nearly 4% on March 16 to reach a four-month high. The move capped a 5-day gain of 15% for the automaker, demonstrating renewed market confidence in its growth trajectory.

Q1 Guidance Projects Up to 97% Delivery Growth

Looking ahead, Nio issued strong guidance for the first quarter of 2026. The company forecasts vehicle deliveries to be between 80,000 and 83,000 units, which would represent a year-over-year increase of between 90.1% and 97.2%. This optimistic outlook suggests that management expects the delivery momentum from late 2025 to continue. CEO William Bin Li stated that the company's growth trajectory is accelerating and that Nio will continue to invest in its core technologies and expand its sales and service network throughout 2026.