01—Abstract
Summary
Summary of the 10-Q filed November 20, 2024. Cited figures are marked; the original filing is the authoritative source.
NVIDIA Corporation reported stellar financial results for the third quarter of fiscal year 2025, showcasing exceptional revenue growth driven primarily by its Data Center segment.
Revenue surged by 94% year-over-year to $35.1 billiona, with the Data Center segment alone growing 112% to $31.0 billion, fueled by robust demand for accelerated computing and AI solutions, particularly the Hopper architecture. The company demonstrated strong profitability, with net income rising 109% to $19.3 billion and diluted earnings per share increasing by 111% to $0.78. Gross margin remained healthy at 74.6%.
NVIDIA also highlighted significant progress on its next-generation Blackwell architecture, with production shipments expected to begin in the fourth quarter of fiscal year 2025, though demand is anticipated to exceed supply for several quarters thereafter. Despite supply constraints and the ongoing impact of global trade regulations, NVIDIA continues to invest in supply chain expansion and product innovation. The company reaffirmed its commitment to returning capital to shareholders through substantial share repurchases and dividends, underscoring its strong financial position and confidence in future growth prospects.
02—Key points
Key Highlights
- Record Q3 FY2025 Revenue: Total revenue reached $35.1 billion, a 94% increase year-over-year, driven by exceptional demand.
- Data Center Dominance: The Data Center segment revenue grew by a remarkable 112% year-over-year to $31.0 billion, fueled by AI and accelerated computing demand.
- Strong Profitability: Net income soared to $19.3 billion, a 109% increase year-over-year, with diluted EPS at $0.78.
- Blackwell Architecture Ramp-Up: Production shipments for the next-generation Blackwell architecture are slated to begin in Q4 FY2025, with demand expected to outstrip supply for an extended period.
- Healthy Gross Margins: Gross margin remained strong at 74.6%, supported by the favorable mix of high-margin Data Center revenue.
- Aggressive Capital Returns: NVIDIA repurchased $11.1 billion in stock during the quarter and approved an additional $50 billion share repurchase authorization, alongside ongoing dividend payments.
- Supply Chain Investments and Risk Mitigation: The company is actively expanding supply and capacity, while navigating global trade regulations and potential supply constraints for upcoming products.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, NVIDIA Corp kept $0.55.
- Revenue$35.08B100.0%
- Cost of revenue−$8.93B25.4%
- Gross profit$26.16B74.6%
- Operating costs−$4.29B12.2%
- Operating income$21.87B62.3%
- Interest, other & tax−$2.56B7.3%
- Net income$19.31B55.0%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 20, 2024Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $35.08B$18.12B | +93.6% |
| Cost of Revenue | $8.93B$4.72B | +89.1% |
| Gross Profit | $26.16B$13.40B | +95.2% |
| R&D Expenses | $3.39B$2.29B | +47.8% |
| SG&A Expenses | $897.00M$689.00M | +30.2% |
| Operating Expenses | $4.29B$2.98B | +43.7% |
| Operating Income | $21.87B$10.42B | +109.9% |
| Net Income | $19.31B$9.24B | +108.9% |
| EPS (Basic) | $0.79$0.37 | +113.5% |
| EPS (Diluted) | $0.78$0.37 | +110.8% |
| Shares Outstanding (Basic) | 24.53B24.68B | −0.6% |
| Shares Outstanding (Diluted) | 24.77B24.94B | −0.7% |
05—Questions
Frequently Asked Questions
What is driving NVIDIA's exceptional revenue growth?
NVIDIA's revenue growth is overwhelmingly driven by the insatiable demand for its Data Center products, particularly its GPUs that power artificial intelligence (AI) and accelerated computing workloads. The strong performance of the Hopper architecture, including the H200 offering, and the anticipation of the upcoming Blackwell architecture are key growth catalysts.
What is the outlook for the Blackwell architecture?
NVIDIA has completed a successful mask change for its Blackwell architecture, and production shipments are scheduled to begin in the fourth quarter of fiscal year 2025. However, the company anticipates that demand for Blackwell systems will exceed supply for several quarters into fiscal year 2026, indicating continued strong demand and potential supply constraints.
How are geopolitical and trade regulations impacting NVIDIA?
Global trade regulations, particularly U.S. export controls on advanced AI chips to China and other regions, continue to be a significant factor. NVIDIA is adapting by developing specialized products for the Chinese market that comply with regulations and seeking necessary licenses for restricted shipments. While these regulations impact revenue from certain regions, the company is focused on expanding its supply chain and diversifying its customer base to mitigate these risks.
What is NVIDIA's strategy for returning capital to shareholders?
NVIDIA is actively returning capital to shareholders through a combination of significant share repurchases and cash dividends. In Q3 FY2025, the company repurchased $11.1 billion of its stock and has an additional $46.4 billion authorized for future repurchases. An additional $50 billion authorization was also approved. This strategy aims to offset dilution from employee stock plans while maintaining financial flexibility.
06—Continue