Nio Stock Shows Signs of Recovery with First Quarterly Profit
“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,” stated Stanley Yu Qu, Nio’s Chief Financial Officer. This announcement marks a pivotal moment for Nio Inc., as it reflects a significant turnaround in the company’s financial performance.
Nio Inc. reported its first quarterly profit in Q4 2025, a milestone that has positively impacted its stock performance. Following the earnings report, Nio’s stock was last seen up 10%, trading at $5.38. This increase comes after a challenging period for the company, which has seen its stock price plummet approximately 92.1% from its all-time high of $66 in January 2021.
In addition to the profit, Nio’s fourth-quarter deliveries increased by 71% year-over-year, contributing to a total of 326,028 units delivered in 2025, up 46.9% from the previous year. “For the full year of 2025, total deliveries across the three brands reached 326,028 units, up 46.9% year over year, reflecting our accelerating growth trajectory,” said William Li, Nio’s CEO.
The company’s revenue for Q4 was reported at 34.65 billion yuan, surpassing the consensus estimate of 33.25 billion yuan. Nio’s adjusted earnings per share (EPS) for the quarter was 0.29 yuan, beating expectations of -0.09 yuan. These financial results have sparked optimism among investors, as evidenced by a 7% jump in shares post-earnings.
Nio has also provided guidance for Q1 2026, forecasting revenue between 24.48 billion and 25.18 billion yuan. Li further elaborated, “We expect total deliveries in the first quarter of 2026 to be between 80,000 and 83,000 units, representing a year-over-year increase of 90.1% to 97.2%.” This projection indicates the company’s confidence in maintaining its growth momentum.
Despite the positive developments, challenges remain. Short interest in Nio has decreased by 5.7% in the last month, suggesting a shift in investor sentiment. However, the company still faces competition from other electric vehicle manufacturers, including Tesla and Lucid Group, which continue to dominate the market.
As Nio navigates this recovery phase, the consensus 12-month price target for its stock is set at $6.60, representing a 21% premium to its current price. Investors will be closely monitoring the company’s performance in the upcoming quarters to see if these trends continue.
Details remain unconfirmed regarding the long-term sustainability of Nio’s growth, but the recent financial results and optimistic guidance provide a hopeful outlook for the company and its stakeholders.
