NIO narrows loss as EV sales surge

In Q2 2026, NIO (9866.HK) reported adjusted earnings per share of -$0.29, beating a forecast of -$0.3234. Total revenue reached RMB 32.14 billion, an increase of 69.1% year over year and 25.9% quarter over quarter. Despite this growth, revenue came in below a Wall Street consensus of RMB 33.4 billion, representing a miss of about 3.77%.

Vehicle sales revenue was RMB 29.0582 billion in the quarter, up 80.1% from a year earlier and 27.5% sequentially. The strong increase in vehicle sales revenue reflected both higher volumes and a favorable product mix.

NIO’s profitability metrics improved meaningfully in Q2 2026. Overall gross margin rose to 18.4%, while vehicle gross margin reached 18.5%. These levels marked a substantial improvement compared with the prior year period.

On a GAAP basis, NIO recorded a net loss of RMB 528 million in Q2 2026, significantly narrower than the RMB 4.9948 billion loss reported a year earlier. The company reported adjusted profit from operations of RMB 206.9 million and an adjusted net profit (non‑GAAP), excluding share‑based compensation, of RMB 26.1 million.

Management stated that the business generated positive operating cash flow and positive free cash flow during the quarter. These developments signaled progress toward a more sustainable financial profile even as the firm remained loss‑making under GAAP.

NIO delivered 107,658 vehicles in Q2 2026, representing year‑over‑year growth of 49.4%. Higher shipments of vehicles underpin both the revenue expansion and the improvement in vehicle margins.

The company also disclosed monthly delivery figures for the start of the third quarter. NIO delivered 35,534 vehicles in July 2026 and 35,836 vehicles in August 2026, indicating continued strong volume momentum.

For Q3 2026, NIO guided deliveries to a range of 108,000 to 111,000 vehicles. This outlook implies further volume growth on top of the record deliveries achieved in Q2 2026.

Management said it expects to maintain vehicle gross margins around 18.5% in the second half of 2026, even in the face of higher input costs. The combination of this margin target and elevated delivery levels frames the company’s near‑term financial trajectory.