01—Abstract
Summary
Summary of the 10-K filed February 26, 2025. Cited figures are marked; the original filing is the authoritative source.
NVIDIA Corporation reported exceptional financial results for the fiscal year ended January 26, 2025, showcasing a substantial 114% year-over-year revenue increase, reaching $130.5 billiona.
This remarkable growth was predominantly fueled by a surge in demand for its Data Center solutions, which saw a 145%b increase, driven by the adoption of its Hopper architecture for AI workloads like large language models and generative AI. The company also initiated shipments of its new Blackwell architecture in the fourth quarter, signaling continued innovation and future growth potential in the AI infrastructure space.
Despite a 45%c increase in operating expenses, largely attributed to investments in research and development and increased headcount, NVIDIA maintained strong profitability, with operating income growing by 147% and net income by 145% year-over-year. The company's strategic focus on its full-stack computing platform, encompassing hardware, software, and networking, continues to solidify its market leadership, though it remains subject to evolving geopolitical and regulatory environments, particularly concerning export controls.
02—Key points
Key Highlights
- Revenue surged by an impressive 114% to $130.5 billion for the fiscal year ended January 26, 2025.
- Data Center revenue experienced a significant 145% increase, reaching $116.2 billion, driven by high demand for AI and accelerated computing platforms.
- Gross margin improved to 75.0% from 72.7% in the prior year, primarily due to a higher mix of Data Center revenue.
- Operating income grew by 147% to $81.5 billion, while net income saw a 145% increase to $72.9 billion, demonstrating robust profitability.
- NVIDIA began shipping its new Blackwell architecture in Q4 FY2025, indicating continued technological advancement.
- The company repurchased $34.0 billion of its common stock in fiscal year 2025, underscoring its commitment to returning capital to shareholders.
- Export control regulations, particularly those impacting sales to China and other regions, remain a significant factor affecting business operations and market access.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, NVIDIA Corp kept $0.56.
- Revenue$130.50B100.0%
- Cost of revenue−$32.64B25.0%
- Gross profit$97.86B75.0%
- Operating costs−$16.41B12.6%
- Operating income$81.45B62.4%
- Interest, other & tax−$8.57B6.6%
- Net income$72.88B55.8%
Where FY2025 revenue went
$130.50B- Net income: $72.88B, 56% of revenue
- Cost of revenue: $32.64B, 25% of revenue
- R&D: $12.91B, 9.9% of revenue
- SG&A: $3.49B, 2.7% of revenue
- Interest, other & tax: $8.57B, 6.6% of revenue
Kept 56% as net incomeSG&A $3.49B · 2.7%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 26, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $130.50B$60.92B | +114.2% |
| Cost of Revenue | $32.64B$16.62B | +96.4% |
| Gross Profit | $97.86B$44.30B | +120.9% |
| R&D Expenses | $12.91B$8.68B | +48.9% |
| SG&A Expenses | $3.49B$2.65B | +31.5% |
| Operating Expenses | $16.41B$11.33B | +44.8% |
| Operating Income | $81.45B$32.97B | +147.0% |
| Net Income | $72.88B$29.76B | +144.9% |
| EPS (Basic) | $2.97$1.21 | +145.5% |
| EPS (Diluted) | $2.94$1.19 | +147.1% |
| Shares Outstanding (Basic) | 24.55B24.69B | −0.5% |
| Shares Outstanding (Diluted) | 24.80B24.94B | −0.5% |
05—Questions
Frequently Asked Questions
What were NVIDIA's primary revenue drivers in fiscal year 2025?
NVIDIA's revenue drivers in fiscal year 2025 were overwhelmingly its Data Center solutions, which saw a 145% year-over-year increase, driven by the high demand for its accelerated computing and AI platforms, particularly the Hopper architecture. Gaming revenue also saw growth, up 9%, and Professional Visualization revenue increased by 21%, while Automotive revenue grew by 55%.
How did export control regulations affect NVIDIA's performance?
The report indicates that export control regulations, especially those imposed by the U.S. government, have impacted NVIDIA's ability to serve certain markets, particularly China. While the company has developed specific products for China that do not require export licenses and has seen Data Center revenue grow in China, this segment remains below pre-control levels and highly competitive. The company anticipates that further changes in export controls could continue to harm its competitive position and future results.
What is NVIDIA's strategy for future growth and innovation?
NVIDIA's strategy centers on advancing its accelerated computing platform, extending its technology and platform leadership in AI through its full-stack offerings (hardware, software, networking), and developing the leading autonomous vehicle platform. The introduction of the Blackwell architecture and continued investment in research and development are key components of this strategy, aiming to meet evolving market demands and deliver next-generation computing solutions.
How is NVIDIA managing its supply chain and manufacturing?
NVIDIA operates a fabless manufacturing strategy, relying on third-party suppliers for wafer fabrication, assembly, testing, and packaging. The company has expanded its supplier relationships and entered into long-term supply and capacity agreements, including prepaid arrangements, to support demand projections. However, this reliance on third parties and the complexity of managing multiple suppliers, along with long manufacturing lead times, create ongoing challenges and risks related to supply and demand mismatches, as highlighted by inventory provisions for low-yielding Blackwell material.
06—Continue