NVIDIA reported a standout Q4 FY2025 with revenue of USD 39.331 billion, marking a YoY increase of 30.9% and a QoQ increase of 12.1%. The company delivered exceptional profitability with gross profit of USD 28.723 billion and a gross margin of 73.0%, accompanied by an operating income of USD 24.034 billion and an operating margin of 61.1%. Net income reached USD 22.091 billion, translating to a net margin of 56.17% and diluted earnings per share of USD 0.89 (GAAP) / USD 0.90 (basic). The quarter underscores NVIDIA’s unparalleled leverage to AI and data-center demand, underpinned by a robust balance sheet and abundant cash flow.
Cash flow momentum was a core driver of value creation: net cash provided by operating activities was USD 16.629 billion, with free cash flow of USD 15.552 billion. The company generated substantial shareholder value via capital allocation: stock repurchases of USD 7.811 billion and dividends of USD 0.245 billion, while maintaining a net cash position of approximately USD 1.681 billion (net debt negative). The liquidity position is complemented by a conservative balance sheet with USD 43.21 billion in cash and short-term investments and a total equity base of USD 79.327 billion.
Market implications: the quarter reinforces NVIDIA’s leadership in AI compute and hyperscale data-center exposure, justifying premium valuation multiples. The key questions for investors relate to durability of AI demand, competitive dynamics (AMD/Intel), potential regulatory and supply-chain risks, and the pace of product cycle upgrades. Going forward, investors should monitor data-center backlog, product mix (HPC/GPU vs. software offerings), and the effectiveness of capital returns in sustaining growth at scale.