EPS of $0.89 increased by 44.3% from previous year
Gross margin of 73.0%
Net income of 22.09B
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NVIDIA Corporation (NVD.DE) QQ4 2025 Results — AI Data Center Demand Fuels Record Revenue, Margin Expansion and Strong Cash Flow
Executive Summary
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.
Revenue: USD 39.331B; YoY growth 30.93%; QoQ growth 12.11%
- Gross Profit: USD 28.723B; Gross margin 0.7303; YoY gross profit growth 27.24%; QoQ 9.81%
- Operating Income: USD 24.034B; operating margin 0.6111; YoY 28.92%; QoQ 9.90%
- Net Income: USD 22.091B; net margin 0.5617; YoY 33.09%; QoQ 14.41%
- EPS (GAAP/basic): USD 0.90; EPS (diluted): USD 0.89; YoY EPS growth 44.27%; QoQ 13.92%
- Free Cash Flow: USD 15.552B; Operating Cash Flow: USD 16.629B; Capital Expenditures: USD 1.078B
- Cash and Investments: Cash and short-term investments USD 43.21B; Total cash at period end USD 8.589B; Net debt: USD -1.681B (net cash position)
- Balance Sheet: Total assets USD 111.601B; Total liabilities USD 32.274B; Total stockholders’ equity USD 79.327B
- Key liquidity and efficiency: Current ratio 4.44; Quick ratio 3.88; Cash Conversion Cycle 84.76 days; ROE 27.8%; ROA 19.8%; Asset turnover 0.352; Equity multiplier 1.407
- Valuation context (as of report): Price-to-earnings 32.82; Price-to-sales 73.73; Price-to-book 36.56; EV/Revenue ~112.38; P/FCF ~186.47; Dividend yield ~0.0085%
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
39.33B
30.93%
12.11%
Gross Profit
28.72B
27.24%
9.81%
Operating Income
24.03B
28.92%
9.90%
Net Income
22.09B
33.09%
14.41%
EPS
0.90
44.27%
13.92%
Key Financial Ratios
currentRatio
4.44
grossProfitMargin
73%
operatingProfitMargin
61.1%
netProfitMargin
56.2%
returnOnAssets
19.8%
returnOnEquity
27.8%
debtEquityRatio
0.13
operatingCashFlowPerShare
$0.68
freeCashFlowPerShare
$0.64
dividendPayoutRatio
1.11%
priceToBookRatio
36.56
priceEarningsRatio
32.82
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings transcript data provided in the supplied dataset. The analysis below integrates the available financials and standard market expectations for NVIDIA given the AI Compute and datacenter demand backdrop.
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Forward Guidance
No explicit forward guidance or targets were provided in the available dataset. However, the underlying business dynamics imply continued strong AI compute demand from hyperscale operators, cloud providers, and enterprise AI initiatives. Risks to monitor include: (1) Sustained data-center AI demand and capacity additions by NVIDIA’s customers, (2) competitive pressure and potential product mix shifts from AMD/Intel and emerging GPU accelerators, (3) potential supply-chain and component constraints, (4) macroeconomic volatility affecting capex cycles in hyperscale and enterprise segments, and (5) regulatory scrutiny in AI technology and data security domains. Given the scale of 4QFY2025 profitability, investors should watch data-center backlog, product refresh cycles (e.g., families of GPUs and software platforms like NVIDIA AI Enterprise and Omniverse), and the pace of buyback execution relative to new investment opportunities.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
NVD.DE Focus
73.03%
61.10%
27.80%
32.82%
MSF.DE
69.60%
43.10%
8.21%
38.16%
AMZ.DE
32.40%
11.30%
7.00%
28.98%
APC.DE
46.20%
31.20%
25.90%
59.68%
TL0.DE
16.30%
6.16%
3.23%
143.09%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Bull case: NVIDIA sustains its AI-driven data-center growth, supported by multi-quarter backlog, superior product differentiation, and a software ecosystem that elevates customer switching costs. The company’s strong FCF and net cash position enable continued aggressive capital returns while funding R&D for future GPU generations, potentially driving higher volumes and-margin expansion. Valuation remains premium, but the growth runway in data-center AI and software platforms could justify multiples if AI adoption accelerates further.
Bear case: Any material slowdown in hyperscale AI deployments, increased competitive pressure, or regulatory/export restrictions could compress revenue growth and margins. A shift in AI demand mix or higher non-GAAP adjustments could impact profitability and cash generation. Investors should monitor three indicators: (i) data-center backlog and order momentum, (ii) product refresh cadence and software monetization, and (iii) the competitive landscape and potential regulatory constraints affecting AI deployment.
Key Investment Factors
Growth Potential
AI compute demand remains the primary growth engine. NVIDIA’s data-center revenue benefits from hyperscaler deployments, AI training/inference workloads, and ecosystem software (NVIDIA AI Enterprise, Omniverse). The company’s large installed base, software moat, and platform-level offerings support a multi-year trajectory of revenue expansion and margin resilience.
Profitability Risk
High concentration of growth in AI data-center end-markets, intense competition (AMD, Intel, emerging accelerators), potential supply-chain constraints, cyclical semiconductor dynamics, geopolitical/tariff exposure, and regulatory risk surrounding AI technologies and data security.
Financial Position
Strong liquidity and cash flow profile with USD 43.21B in cash and short-term investments, net cash position of USD 1.68B, No meaningful short-term debt burden, robust profitability with high gross and operating margins, and aggressive capital returns (USD 7.811B in net share repurchases in the quarter) supporting shareholder value.
SWOT Analysis
Strengths
Market-leading AI compute platform and GPU performance
Exceptional gross and operating margins (GM ~73%, OPM ~61%)
Strong balance sheet with net cash position and robust FCF
Scale and breadth of data-center customer base and software ecosystem (NVIDIA AI Enterprise, Omniverse)
Large share repurchases underpinning shareholder value and discipline in capital allocation
Weaknesses
High reliance on data-center AI demand; cyclicality risk if AI capex slows
Premium valuation may compress if growth deceleration or competition accelerates
Concentration risk in few high-growth end-markets (hyperscale cloud, enterprise AI) could magnify volatility
Opportunities
Expansion of AI infra buildouts across hyperscalers and enterprises
Software platforms and licensing opportunities that complement hardware (AI Enterprise, Omniverse)
Potential growth in automotive/robotics with Jetson and autonomous systems
Accelerated AI inference workloads and next-generation GPU architectures
Threats
Intense competitive pressure from AMD/Intel and emerging GPUs
Regulatory and export controls impacting AI technology deployment
Supply-chain disruptions and component shortages
Macro slowdown reducing enterprise and cloud capex growth