NIO's Shares Gain After Guiding for First Quarterly Operational Profit

By Jiahui Huang

Chinese automaker NIO's shares gained after the company guided for it first quarterly profit in the fourth quarter of 2025.

Shares were up 7.2% in Hong Kong to 39.20 Hong Kong dollars at midday Friday, equivalent to US$5.02, outperforming the benchmark Hang Seng Index, which was last down 1.1%.

The company on Thursday said it guided for an adjusted profit from operations in the range of between 700 million yuan and 1.2 billion yuan for the fourth quarter of 2025.

It attributed the profit guidance to sustained growth in sales volume and optimized vehicle margin due to a better product mix and ongoing cost reduction.

Nomura analysts said NIO's guidance exceeded expectations. The company's revenue in the quarter is likely to be above CNY35.5 billion, they said in a note.

NIO's sales and margins faced challenges in the first few quarters of 2025, Nomura analyst said, but they reckon that the company is on track to improve its business, both operationally and financially by improving margins and control on operational expenses.

Sales will remain a challenge for the company this year, given intensifying competition and cooling demand in China's domestic market, Citi analysts said.

NIO's coming new models this year, including ES9 and Onvo L80, as well as ES7, have the potential to improve its market position and financial position if the new models gain traction similar to its ES8 and Onvo L90 models, Nomura analysts said.

"We believe the latest market concerns around its performance are overdone," they added.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

February 05, 2026 23:45 ET (04:45 GMT)