Executive Summary
NVIDIA Corporation (NVDA) reported spectacular results for Q2 2025, delivering a record revenue of $30 billion, reflecting a 15% sequential increase and a staggering 122% year-on-year leap. This impressive performance was driven significantly by the robust demand for its advanced AI and data center solutions, particularly the Hopper architecture. Management emphasized the ongoing transformation in computing from general-purpose to accelerated computing, fueled by exponential AI growth. The company expects continued momentum, with anticipated revenue of around $32.5 billion in Q3 2025, alongside a solid gross margin forecast of about 75%. Overall, NVIDIA's strong financial health, vibrant cash flow, and increasing market presence position it favorably against industry competitors.
Key Performance Indicators
QoQ: 15.34% | YoY:122.40%
QoQ: 10.62% | YoY:138.58%
QoQ: 10.25% | YoY:174.15%
QoQ: 11.54% | YoY:168.24%
QoQ: 13.33% | YoY:172.00%
Key Insights
Revenue: $30 billion (+122.4% YoY, +15.34% QoQ) | Net Income: $16.6 billion (+168.24% YoY, +11.54% QoQ) | Gross Margin: 75.1% | EPS: $0.68 (diluted) | Operating Margin: 62.06%. The Q2 2025 revenue surpasses management expectations significantly, which projected $28 billion. Notably, data center revenue hit a record $26.3 billion, marking a 154% increase year-on-year. Demand for NVIDIA's products has risen dramatically, with cloud service providers contributing approximately 45% of data cent...
Financial Highlights
Revenue: $30 billion (+122.4% YoY, +15.34% QoQ) | Net Income: $16.6 billion (+168.24% YoY, +11.54% QoQ) | Gross Margin: 75.1% | EPS: $0.68 (diluted) | Operating Margin: 62.06%. The Q2 2025 revenue surpasses management expectations significantly, which projected $28 billion. Notably, data center revenue hit a record $26.3 billion, marking a 154% increase year-on-year. Demand for NVIDIA's products has risen dramatically, with cloud service providers contributing approximately 45% of data center revenue. Management reiterated their focus on offering unprecedented throughput and efficiency in AI applications to support rapidly escalating computational needs.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
30.04B |
122.40% |
15.34% |
| Gross Profit |
22.57B |
138.58% |
10.62% |
| Operating Income |
18.64B |
174.15% |
10.25% |
| Net Income |
16.60B |
168.24% |
11.54% |
| EPS |
0.68 |
172.00% |
13.33% |
Key Financial Ratios
operatingProfitMargin
62.1%
operatingCashFlowPerShare
$0.59
freeCashFlowPerShare
$0.55
dividendPayoutRatio
1.48%
Management Commentary
Management Insights:
1. AI Demand: 'The demand for NVIDIA is coming from frontier model makers and tens of thousands of companies building generative AI applications.' - Colette Kress.
2. Future Growth: 'Blackwell production ramp is scheduled to begin in the fourth quarter and continue into fiscal year '26. In Q4, we expect to ship several billion dollars in Blackwell revenue.' - Jensen Huang.
Q2 was another record quarter. Revenue of $30 billion was up 15% sequentially and up 122% year-on-year and well above our outlook of $28 billion.
— Colette Kress
We believe sovereign AI revenue will reach low-double-digit billions this year.
— Colette Kress
Forward Guidance
NVIDIA anticipates robust growth in Q3 2025 with a revenue outlook of $32.5 billion, signaling ongoing strength in the AI segment and data center expansion. Management projects a favorable gross margin of around 75%, demonstrating the effective scaling of operations and product launches. Key areas of focus for investors should include Blackwell platform adoption and innovations that continue driving growth in generative AI and enterprise solutions, which are poised to become a multi-billion-dollar revenue generator.