EPS of $0.78 increased by 31.7% from previous year
Gross margin of 74.6%
Net income of 19.31B
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NVIDIA Corporation (NVDA.NE) QQ3 2025 Results – AI Compute Leader Delivers Record Profitability Amid Soaring Data-Center Demand
Executive Summary
NVIDIA delivered a standout QQ3 2025 performance driven by sustained AI data-center demand and robust monetization of its GPU platform. Revenue reached $35.08 billion, up 34.7% year-over-year (YoY) with negligible sequential change, while gross margin expanded to approximately 74.6%, yielding a record gross profit of $26.16 billion. Operating income stood at $21.87 billion (margin ~62.3%), and net income was $19.31 billion (net margin ~55.0%), supported by strong pricing discipline and product mix with high-margin software and platform synergies.
The company generated substantial cash flow, with operating cash flow of $17.63 billion and free cash flow of $16.81 billion for the quarter. NVIDIA carries a formidable liquidity position, evidenced by cash and short-term investments totaling roughly $38.49 billion and a material net cash posture relative to debt. Management commentary continues to emphasize the durability of AI workloads, hyperscaler deployment, and the expanding addressable market across gaming, professional visualization, data center, and automotive applications. In the near term, the key risk factors center on AI compute demand cycles, competitive dynamics from AMD and Intel, and macro developments affecting capex cycles among hyperscalers and OEMs.
Key Performance Indicators
Revenue
35.08B
QoQ: 0.00% | YoY:34.70%
Gross Profit
26.16B
74.56% margin
QoQ: 0.00% | YoY:28.18%
Operating Income
21.87B
QoQ: 0.00% | YoY:29.33%
Net Income
19.31B
QoQ: 0.00% | YoY:29.76%
EPS
0.78
QoQ: 1.28% | YoY:31.67%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $35.082B, YoY +34.70%, QoQ +0.00% (YoY growth driven by AI data center and ecosystem adoption)
Net Income: $19.309B, YoY +29.76%, QoQ +0.00%; Net Margin: 55.04%
EPS: $0.78 per share, YoY +31.67%, QoQ +1.28%
Expense and efficiency:
Financial Highlights
Revenue and profitability health:
- Revenue: $35.082B, YoY +34.70%, QoQ +0.00% (YoY growth driven by AI data center and ecosystem adoption)
- Gross Profit: $26.156B, YoY +28.18%, QoQ +0.00%; Gross Margin: 74.56%
- Operating Income: $21.869B, YoY +29.33%, QoQ +0.00%; Operating Margin: 62.34%
- Net Income: $19.309B, YoY +29.76%, QoQ +0.00%; Net Margin: 55.04%
- EPS: $0.78 per share, YoY +31.67%, QoQ +1.28%
Expense and efficiency:
- R&D: $3.39B; SG&A: $0.897B; Operating Expenses: $4.287B; EBITDA: $22.855B; EBITDA Margin: 65.15%
Cash flow and capital allocation:
- Operating Cash Flow: $17.627B; Free Cash Flow: $16.814B; Capex: $0.813B
- Net Change in Cash: +$0.536B; Cash at End of Period: $9.107B
- Cash, Short-Term Investments: $38.487B; Total Debt: $10.225B; Net Debt (as reported): -$1.118B (note: likely a difference in calculation method vs cash + investments minus total debt, see liquidity discussion)
Balance sheet health:
- Total Assets: $96.013B; Total Liabilities: $30.114B; Total Stockholders’ Equity: $65.899B
- Liquidity remains robust with a large cash/marketable securities position and low leverage relative to asset base.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
35.08B
34.70%
0.00%
Gross Profit
26.16B
28.18%
0.00%
Operating Income
21.87B
29.33%
0.00%
Net Income
19.31B
29.76%
0.00%
EPS
0.78
31.67%
1.28%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Note: Transcript data was not provided in the input. As a result, no management quotes or thematic highlights from the earnings call can be cited here. If you can provide the transcripts or key quotes, I will incorporate them with context and significance by theme (strategy, operations, market conditions).
In the absence of transcript excerpts, the following management-oriented themes are typically relevant for NVIDIA in QQ3 2025 given the results:
- AI compute demand durability and data-center deployment pace
- Platform monetization through software, tools, and enterprise licenses
- Capacity expansion and supply-chain readiness to meet hyperscaler demand
- Execution efficiency and gross margin expansion through product mix and pricing discipline
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Forward Guidance
Management commentary for QQ3 2025 reinforces a constructive outlook for AI compute demand, particularly in data centers powering large-scale AI training and inference. While no explicit full-year revenue or margin guidance is provided in the input, the quarterly results imply that NVIDIA expects continued pricing power and strong utilization of its CUDA/stack, software offerings, and Omniverse ecosystem to support sustained profitability. Investors should monitor:
- Data-center capacity expansion and utilization rates across hyperscalers
- Progress in software monetization (NVIDIA AI Enterprise, vGPU, and related software), which can bolster ARR and gross margin stability
- Regulatory/export controls and geopolitical dynamics affecting GPU sales to certain regions
- Capital allocation signals, including potential continued share repurchases or strategic investments in capacity and acquisitions
Key indicators to watch: quarterly data-center revenue progression, mix of hardware vs software revenue, and any incremental guidance on annual trajectory of operating margins and free cash flow generation.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
NVDA.NE Focus
74.56%
N/A
N/A
N/A
MSFT.NE
68.70%
45.70%
8.02%
1.37%
AMD.NE
50.10%
10.60%
1.35%
12.13%
AAPL.NE
46.30%
29.60%
32.20%
33.42%
GOOG.NE
58.70%
32.30%
8.37%
19.25%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
NASDAQ-listed NVIDIA remains the premier supplier of AI compute hardware and software platforms, with a highly favorable profitability profile and sizable free cash flow generation. The QQ3 2025 results underscore sustained AI demand and robust product mix, supporting a constructive long-term investment thesis. Key considerations for investors include the durability of hyperscaler data-center spend, continued success in software monetization, and the company’s ability to maintain pricing power amid competitive dynamics. Given the scale of the AI opportunity and NVIDIA’s balance sheet strength, the stock is positioned for continued value creation, though investors should monitor regulatory developments, potential cycle shifts in AI workloads, and any shifts in data-center demand intensity that could influence quarterly visibility.
Key Investment Factors
Growth Potential
Structural growth driven by AI adoption across cloud providers, enterprise AI applications, and autonomous edge devices. NVIDIA’s data-center GPU platforms (e.g., Hopper/next-gen architectures) are positioned to benefit from expanding model sizes and the need for high-throughput AI compute, which supports durable revenue growth and high-margin software/solutions pipeline.
Profitability Risk
Concentration risk in AI compute demand cycles; competitive pressure from AMD and Intel for GPU and accelerators; potential supply-chain volatility; regulatory/export controls impacting cross-border sales; macro headwinds affecting capex rates by hyperscalers; cyber/operational risk associated with software platforms and cloud ecosystems.
Financial Position
Strong liquidity and negligible leverage relative to asset base. Cash and short-term investments (~$38.49B) exceed total debt (~$10.23B), supporting aggressive buybacks and potential steady dividend policy, if pursued. The balance sheet allows continued R&D investment and capacity expansion to capture AI market opportunities.
SWOT Analysis
Strengths
Industry-leading position in AI compute with a dominant data-center GPU platform
Exceptional gross and operating margins, supported by software monetization
Robust free cash flow generation and strong balance sheet liquidity
Diversified end-market exposure (gaming, data center, professional visualization, automotive)
Weaknesses
High reliance on AI data-center demand cycles and hyperscaler capex
Competitive exposure to AMD and Intel in GPUs and accelerators
Opportunities
Expansion of software offerings (NVIDIA AI Enterprise, CUDA ecosystem) to grow ARR
Omniverse and enterprise visualization as recurring software revenue streams
Automotive AI and robotics applications as new multi-year growth vectors
Geographic diversification and new international partnerships
Threats
Rising competition in GPU/accelerator space impacting share and pricing
Export controls and geopolitical tensions affecting cross-border AI hardware shipments
Macro downturns or delayed AI adoption cycles impacting capex demand