NIOCAUTIOUS

NIO Gross Margin Analysis

19.0%

Higher than 24% of Consumer Cyclical sector peers

Updated 262h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after subtracting the direct costs of producing goods.

Sector Performance

24th percentile

NIO

19.0%

Sector Median

36.5%

Sector Avg

30.1%

Prior Period

17.5%(May 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue left after subtracting the direct costs of producing goods.

NIO’s current gross margin of 19.0% is far below the Consumer Cyclical sector median of 36.3%, placing it in the 23rd percentile among peers. The year-over-year change is not available, but the quarter-over-quarter change shows an improvement of +8.6%, rising from 17.5% last quarter. While the low absolute level signals that NIO earns much less per dollar of sales than most competitors, the recent upward trend suggests cost controls or pricing power are improving. This combination of a weak level with a positive short-term move creates a mixed risk profile — the gap to the sector median remains wide, leaving earnings vulnerable if the improvement stalls. The metric directly supports the overall CAUTIOUS verdict, as the below-median margin is a key weakness that warrants a careful stance.

Frequently Asked Questions

What does the Gross Margin tell investors about NIO?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does NIO's Gross Margin compare to its sector?

NIO's Gross Margin of 19.0% compares to a Consumer Cyclical sector median of 36.5%, placing it in the 24th percentile.

Who are NIO's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: URBN (36.6%), QSR (33.7%), CAVA (25.4%), BBY (23.5%), ROL (50.8%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.