Nvidia(NVDA) - 2025 Q2 - Quarterly Results

Financial Performance Summary Q2 Fiscal 2025 Financial Highlights NVIDIA reported record quarterly revenue and strong EPS growth, driven by Data Center performance and high demand for its AI platforms - Record quarterly revenue of $30.0 billion, up 122% from a year ago, and record Data Center revenue of $26.3 billion, up 154% from a year ago[3][12] Q2 FY2025 GAAP Financial Summary (in millions, except EPS) | Metric | Q2 FY25 | Q1 FY25 | Q2 FY24 | Q/Q | Y/Y | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $30,040 | $26,044 | $13,507 | Up 15% | Up 122% | | Gross margin | 75.1% | 78.4% | 70.1% | Down 3.3 pts | Up 5.0 pts | | Operating income | $18,642 | $16,909 | $6,800 | Up 10% | Up 174% | | Net income | $16,599 | $14,881 | $6,188 | Up 12% | Up 168% | | Diluted EPS | $0.67 | $0.60 | $0.25 | Up 12% | Up 168% | Q2 FY2025 Non-GAAP Financial Summary (in millions, except EPS) | Metric | Q2 FY25 | Q1 FY25 | Q2 FY24 | Q/Q | Y/Y | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $30,040 | $26,044 | $13,507 | Up 15% | Up 122% | | Gross margin | 75.7% | 78.9% | 71.2% | Down 3.2 pts | Up 4.5 pts | | Operating income | $19,937 | $18,059 | $7,776 | Up 10% | Up 156% | | Net income | $16,952 | $15,238 | $6,740 | Up 11% | Up 152% | | Diluted EPS | $0.68 | $0.61 | $0.27 | Up 11% | Up 152% | - CEO Jensen Huang noted global data centers are in "full throttle" to modernize with accelerated computing and generative AI, driven by strong demand for Hopper and anticipation for Blackwell[5] Shareholder Returns and Corporate Actions NVIDIA returned capital to shareholders via repurchases and dividends, authorized more repurchases, and completed a stock split - Returned $15.4 billion to shareholders in H1 FY2025 through share repurchases and cash dividends[5] - The Board approved an additional $50.0 billion in share repurchase authorization, with $7.5 billion remaining under the previous authorization at the end of Q2[5] - A quarterly cash dividend of $0.01 per share will be paid on October 3, 2024[6] - Completed a ten-for-one forward stock split on June 7, 2024. All share and per-share amounts have been retroactively adjusted[6] Outlook for Q3 Fiscal 2025 NVIDIA anticipates Q3 FY2025 revenue of approximately $32.5 billion, with Non-GAAP gross margins of 75.0% and operating expenses of $3.0 billion, expecting mid-70% full-year gross margins Q3 FY2025 Outlook | Metric | Outlook | | :--- | :--- | | Revenue | $32.5 billion, ± 2% | | GAAP Gross Margin | 74.4%, ± 50 bps | | Non-GAAP Gross Margin | 75.0%, ± 50 bps | | GAAP Operating Expenses | ~$4.3 billion | | Non-GAAP Operating Expenses | ~$3.0 billion | | GAAP & Non-GAAP Tax Rates | 17%, ± 1% (excluding discrete items) | - Full-year gross margins are expected to be in the mid-70% range, and full-year operating expenses are expected to grow in the mid- to upper-40% range[10][11] Business Segment Highlights Data Center The Data Center segment achieved record revenue, driven by strong MLPerf benchmarks, new system rollouts, platform adoption, and microservices Data Center Revenue (Q2 FY25, in billions) | Metric | Value | Change (Q/Q) | Change (Y/Y) | | :--- | :--- | :--- | :--- | | Revenue | $26.3 billion | +16% | +154% | - Announced that H200 and Blackwell B200 processors swept the latest MLPerf benchmark results for inference[12] - The NVIDIA Spectrum-X™ Ethernet networking platform is seeing broad adoption by cloud service providers and enterprises[13] - NVIDIA NIM™ microservices are now broadly available and are being integrated by over 150 companies to speed up generative AI development[14] Gaming and AI PC Gaming and AI PC revenue increased, driven by advancements in on-device AI with NVIDIA ACE and Nemotron-4, and expanding RTX-supported games Gaming Revenue (Q2 FY25, in billions) | Metric | Value | Change (Q/Q) | Change (Y/Y) | | :--- | :--- | :--- | :--- | | Revenue | $2.9 billion | +9% | +16% | - NVIDIA ACE, a suite of generative AI technologies for digital humans, is now in early access for RTX AI PCs and includes the Nemotron-4 4B small language model for on-device inference[17] - Introduced Project G-Assist, a technology preview of an AI agent designed to assist gamers and creators in real time[17] - The total number of RTX games and applications now exceeds 600, and the GeForce NOW service has surpassed 2,000 games[18] Professional Visualization Professional Visualization revenue increased, supported by new generative AI models and NIM microservices for OpenUSD, accelerating industrial digital twins and robotics Professional Visualization Revenue (Q2 FY25, in millions) | Metric | Value | Change (Q/Q) | Change (Y/Y) | | :--- | :--- | :--- | :--- | | Revenue | $454 million | +6% | +20% | - Introduced generative AI models and NIM microservices for OpenUSD to accelerate workflows for industrial digital twins and robotics[19] - Major Taiwanese electronics makers are adopting a new reference workflow combining NVIDIA Metropolis, Omniverse, and Isaac to create more autonomous factories[19] Automotive and Robotics Automotive and Robotics revenue grew, driven by Isaac robotics platform adoption and Omniverse Cloud Sensor RTX microservices for simulation Automotive Revenue (Q2 FY25, in millions) | Metric | Value | Change (Q/Q) | Change (Y/Y) | | :--- | :--- | :--- | :--- | | Revenue | $346 million | +5% | +37% | - Leaders in robot development, including BYD Electronics, Siemens, and Teradyne Robotics, are adopting the Isaac robotics platform[20] - Unveiled Omniverse Cloud Sensor RTX™ microservices to enable physically accurate sensor simulation, accelerating the development of autonomous machines[20] Condensed Consolidated Financial Statements (GAAP) Statements of Income NVIDIA reported significant increases in revenue and net income for the three and six months ended July 28, 2024, reflecting strong financial performance Key Income Statement Data (in millions) | Metric | Three Months Ended Jul 28, 2024 | Three Months Ended Jul 30, 2023 | Six Months Ended Jul 28, 2024 | Six Months Ended Jul 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $30,040 | $13,507 | $56,084 | $20,699 | | Gross Profit | $22,574 | $9,462 | $42,979 | $14,110 | | Operating Income | $18,642 | $6,800 | $35,551 | $8,941 | | Net Income | $16,599 | $6,188 | $31,480 | $8,232 | Balance Sheets NVIDIA's total assets and shareholders' equity significantly increased as of July 28, 2024, driven by growth in cash, marketable securities, and receivables Key Balance Sheet Data (in millions) | Metric | July 28, 2024 | January 28, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and marketable securities | $34,800 | $25,984 | | Accounts receivable, net | $14,132 | $9,999 | | Inventories | $6,675 | $5,282 | | Total Assets | $85,227 | $65,728 | | Total Liabilities | $27,070 | $22,750 | | Total Shareholders' Equity | $58,157 | $42,978 | Statements of Cash Flows Net cash from operating activities significantly increased for the six months ended July 28, 2024, with strong free cash flow and substantial share repurchases Key Cash Flow Data (Six Months Ended, in millions) | Metric | July 28, 2024 | July 30, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $29,833 | $9,259 | | Net cash used in investing activities | ($3,135) | ($3,492) | | Net cash used in financing activities | ($19,665) | ($5,479) | | Payments for repurchases of common stock | ($14,898) | ($3,067) | Free Cash Flow (in millions) | Metric | Three Months Ended Jul 28, 2024 | Six Months Ended Jul 28, 2024 | | :--- | :--- | :--- | | Free Cash Flow | $13,483 | $28,418 | Reconciliation of GAAP to Non-GAAP Measures Reconciliation of Q2 FY2025 Results NVIDIA reconciled Q2 FY2025 GAAP to Non-GAAP results, primarily adjusting for stock-based compensation and acquisition costs, resulting in higher Non-GAAP net income and EPS Q2 FY2025 GAAP to Non-GAAP Reconciliation (in millions) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Gross Profit | $22,574 | $155 | $22,729 | | Operating Income | $18,642 | $1,295 | $19,937 | | Net Income | $16,599 | $353 | $16,952 | - Total pre-tax non-GAAP adjustments for Q2 FY2025 amounted to $1.103 billion, primarily consisting of stock-based compensation and acquisition-related costs[40] Reconciliation of Q3 FY2025 Outlook NVIDIA reconciles its Q3 FY2025 GAAP outlook to Non-GAAP figures, adjusting operating expenses for non-cash items like stock-based compensation Q3 FY2025 Outlook Reconciliation (in millions) | Metric | GAAP Outlook | Adjustments | Non-GAAP Outlook | | :--- | :--- | :--- | :--- | | Gross Margin | 74.4% | 0.6% | 75.0% | | Operating Expenses | $4,250M | ($1,250M) | $3,000M |