NIO’s Q1 2026 gross margin surged to 19.0%, defying industry-wide margin compression as deliveries nearly doubled year over year.
NIO posted Q1 2026 revenue of $3.70 billion, up 98.3% year over year, on 83,465 vehicle deliveries. Gross margin reached 19.0%, a sharp increase from 7.6% in the same period last year, with vehicle margin at 18.8%.
The results mark a fourth consecutive quarter of sequential margin improvement, despite a broader EV price war in China. Operating costs declined, with R&D down 40.7% and SG&A down 20.5% year over year. However, GAAP net loss totaled RMB 332.1 million, or negative $0.03 per share.
Shares fell 2.95% on the day of the release, extending a 14.53% decline in the week leading up to earnings. The company attributed its margin resilience to its battery-swap infrastructure, a competitive advantage rivals lack.