Summary
NVIDIA Corporation's third quarter fiscal year 2017 results (ending October 30, 2016) demonstrate robust growth across key business segments, signaling strong market demand and successful product execution. The company reported a significant 54% year-over-year increase in revenue to $2.004 billion, driven by exceptional performance in the GPU business, which saw a 53% increase, and a substantial 87% surge in the Tegra Processor business. Key growth drivers include strong sales of high-end GeForce gaming GPUs based on the new Pascal architecture, a more than doubling of datacenter revenue fueled by demand for AI and high-performance computing, and solid contributions from professional visualization and automotive sectors. The company also highlighted a favorable gross margin of 59.0%, an improvement from the prior year, attributed to product mix and strong demand. NVIDIA's strategic focus on visual computing platforms for Gaming, Professional Visualization, Datacenter, and Automotive markets appears to be paying off, with strong financial results supporting its market leadership position.
Financial Highlights
54 data points| Revenue | $2.00B |
| Cost of Revenue | $821.00M |
| Gross Profit | $1.18B |
| R&D Expenses | $373.00M |
| SG&A Expenses | $171.00M |
| Operating Expenses | $544.00M |
| Operating Income | $639.00M |
| Interest Expense | $16.00M |
| Net Income | $542.00M |
| EPS (Basic) | $0.03 |
| EPS (Diluted) | $0.02 |
| Shares Outstanding (Basic) | 21.52B |
| Shares Outstanding (Diluted) | 26.12B |
Key Highlights
- 1Revenue surged by 54% year-over-year to $2.004 billion, driven by strong demand in the GPU and Tegra Processor segments.
- 2The GPU business, a primary revenue driver, experienced a 53% year-over-year increase, largely propelled by high-end GeForce gaming GPUs and significant growth in datacenter solutions.
- 3Datacenter revenue more than doubled (up 193% year-over-year), indicating strong demand for AI and high-performance computing solutions.
- 4The Tegra Processor business showed remarkable growth with an 87% year-over-year increase in revenue, boosted by automotive systems and gaming development platforms.
- 5Gross margin improved to 59.0% from 56.3% in the prior year, reflecting favorable product mix and strong demand.
- 6Net income increased substantially by 120% year-over-year to $542 million, translating to diluted EPS of $0.83, up 89% from the prior year.
- 7The company continued its capital return program, announcing an additional $2 billion under its repurchase program and increasing its quarterly dividend by 22% to $0.14 per share.