01—Abstract
Summary
Summary of the 10-Q filed November 19, 2025. Cited figures are marked; the original filing is the authoritative source.
NVIDIA Corporation's (NVDA) 10-Q filing for the period ending October 25, 2025, reveals another quarter of exceptional performance, driven by continued robust demand for its data center and AI solutions.
Revenue surged by 62% year-over-year to $57.0 billiona, with the Compute & Networking segment being the primary driver, up 64% to $50.9 billion. This growth is attributed to the increasing adoption of its Blackwell architectures and the broader platform shifts in accelerated computing and AI. Despite a significant charge related to excess H20 inventory impacting the year-to-date gross margin, the sequential improvement in gross margin indicates the successful ramp of newer architectures and cost structure efficiencies.
The company continues to invest heavily in research and development, alongside significant capital allocation towards share repurchases and strategic investments, including a substantial commitment to Anthropic. While geopolitical factors, particularly U.S. export controls, present ongoing challenges and potential risks to revenue, NVIDIA's strong market position and continuous product innovation appear to be mitigating these impacts effectively in the current reporting period. The company reiterates its belief in sufficient liquidity for foreseeable future operations.
02—Key points
Key Highlights
- Revenue reached $57.0 billion, a 62% increase year-over-year, driven by strong demand in the Compute & Networking segment.
- The Compute & Networking segment revenue grew 64% year-over-year to $50.9 billion, fueled by accelerated computing and AI solutions.
- Gross margin for the quarter was 73.4%, showing sequential improvement despite a year-over-year decrease attributed to business model transitions and an H20 inventory charge.
- Operating income increased significantly to $36.0 billion, reflecting strong revenue growth and operational leverage.
- The company repurchased $12.6 billion of its common stock in the quarter, underscoring its commitment to returning capital to shareholders.
- NVIDIA announced significant strategic investment commitments, including up to $10 billion in Anthropic, signaling continued focus on AI ecosystem expansion.
- The company faces ongoing risks related to U.S. export controls impacting its ability to serve certain international markets, particularly China, and potential supply chain disruptions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, NVIDIA Corp kept $0.56.
- Revenue$57.01B100.0%
- Cost of revenue−$15.16B26.6%
- Gross profit$41.85B73.4%
- Operating costs−$5.84B10.2%
- Operating income$36.01B63.2%
- Interest, other & tax−$4.10B7.2%
- Net income$31.91B56.0%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 19, 2025Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $57.01B$35.08B | +62.5% |
| Cost of Revenue | $15.16B$8.93B | +69.8% |
| Gross Profit | $41.85B$26.16B | +60.0% |
| R&D Expenses | $4.71B$3.39B | +38.8% |
| SG&A Expenses | $1.13B$897.00M | +26.4% |
| Operating Expenses | $5.84B$4.29B | +36.2% |
| Operating Income | $36.01B$21.87B | +64.7% |
| Net Income | $31.91B$19.31B | +65.3% |
| EPS (Basic) | $1.31$0.79 | +65.8% |
| EPS (Diluted) | $1.30$0.78 | +66.7% |
| Shares Outstanding (Basic) | 24.33B24.53B | −0.8% |
| Shares Outstanding (Diluted) | 24.48B24.77B | −1.2% |
05—Questions
Frequently Asked Questions
What is the primary driver of NVIDIA's revenue growth in this quarter?
The primary driver of NVIDIA's revenue growth is the sustained and robust demand for its data center and AI solutions, particularly from its Compute & Networking segment. This is fueled by the adoption of its advanced architectures, such as Blackwell, and the ongoing platform shifts towards accelerated computing and powerful AI models.
How is NVIDIA managing the impact of U.S. export controls, especially concerning China?
NVIDIA is navigating U.S. export controls by seeking necessary licenses for specific products and markets. The company incurred a significant charge in Q1 FY26 due to excess inventory and purchase obligations for its H20 product intended for China after new licensing requirements were imposed. While licenses have been granted for certain H20 sales, the overall impact and future implications of evolving regulations remain a key concern, potentially limiting access to certain markets and benefiting competitors.
What is NVIDIA's strategy for returning capital to shareholders?
NVIDIA continues to actively return capital to shareholders through a substantial share repurchase program. In this quarter, the company repurchased $12.6 billion of its common stock, and its Board of Directors approved an additional $60.0 billion authorization. The company also continues to pay cash dividends.
What are the key risks and challenges highlighted in this report?
Key risks and challenges include the ongoing impact of U.S. export controls on its ability to serve international markets, particularly China, potential supply chain disruptions, the complexity of product transitions, the increasing frequency of new product introductions, and the rapid evolution of global trade policies. The company also notes the rise of open-source AI models as a potential competitive factor.
06—Continue