Nvidia(NVDA) - 2025 Q3 - Quarterly Results

Financial Highlights NVIDIA reported record Q3 FY2025 financial performance, driven by significant revenue and earnings growth. Q3 FY2025 Performance Summary NVIDIA achieved record Q3 FY2025 revenue of $35.1 billion, up 94% YoY, driven by strong Data Center growth and AI platform demand. - Record quarterly revenue reached $35.1 billion, up 17% sequentially and 94% year-over-year, with Data Center revenue hitting a record $30.8 billion, up 17% sequentially and 112% year-over-year[2] Q3 FY2025 Financial Summary (GAAP vs. Non-GAAP) | ($ in millions, except EPS) | Q3 FY25 (GAAP) | Q3 FY25 (Non-GAAP) | Y/Y Change (GAAP) | Y/Y Change (Non-GAAP) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $35,082 | $35,082 | Up 94% | Up 94% | | Gross Margin | 74.6% | 75.0% | Up 0.6 pts | -- | | Operating Income | $21,869 | $23,276 | Up 110% | Up 101% | | Net Income | $19,309 | $20,010 | Up 109% | Up 100% | | Diluted EPS | $0.78 | $0.81 | Up 111% | Up 103% | - The company announced a quarterly cash dividend of $0.01 per share, payable on December 27, 2024[5] - CEO Jensen Huang stated that the "age of AI is in full steam" with incredible demand for Hopper and anticipation for the Blackwell platform, which is in full production[4] Business Outlook NVIDIA provides a positive outlook for Q4 FY2025, projecting continued revenue growth and stable margins. Q4 FY2025 Forecast NVIDIA forecasts Q4 FY2025 revenue of approximately $37.5 billion, with GAAP and non-GAAP gross margins around 73.0% and 73.5% respectively. Q4 FY2025 Outlook | Metric | Expected Value | | :--- | :--- | | Revenue | $37.5 billion, ± 2% | | GAAP Gross Margin | 73.0%, ± 50 bps | | Non-GAAP Gross Margin | 73.5%, ± 50 bps | | GAAP Operating Expenses | ~$4.8 billion | | Non-GAAP Operating Expenses | ~$3.4 billion | - GAAP and non-GAAP other income and expense are expected to be an income of approximately $400 million[8] - The company projects GAAP and non-GAAP tax rates to be 16.5% (±1%), excluding discrete items[8] Business and Operational Highlights NVIDIA achieved significant operational milestones and growth across its key business segments. Data Center Data Center revenue reached a record $30.8 billion in Q3, up 112% YoY, driven by Hopper H200 cloud adoption and global AI supercomputer projects. Data Center Revenue (Q3 FY2025) | Metric | Value | Q/Q Change | Y/Y Change | | :--- | :--- | :--- | :--- | | Revenue | $30.8 billion | +17% | +112% | - Announced availability of NVIDIA Hopper H200 instances in cloud services including AWS, CoreWeave, and Microsoft Azure, with Google Cloud and Oracle Cloud coming soon[9] - Key sovereign and enterprise AI infrastructure projects were launched or expanded, including Denmark's largest AI supercomputer, SoftBank's supercomputer in Japan, and a partnership with Foxconn for Taiwan's fastest AI supercomputer[10][11][12] - Accelerated xAI's Colossus supercomputer, which uses 100,000 NVIDIA Hopper GPUs, with the NVIDIA Spectrum-X™ Ethernet networking platform[12] Gaming and AI PC Gaming and AI PC revenue grew 15% YoY to $3.3 billion, supported by new RTX AI PC shipments and GeForce GPU's 25th anniversary. Gaming Revenue (Q3 FY2025) | Metric | Value | Q/Q Change | Y/Y Change | | :--- | :--- | :--- | :--- | | Revenue | $3.3 billion | +14% | +15% | - Began shipping new RTX AI PCs with 321 AI TOPS of performance from ASUS and MSI[17] - Celebrated the 25th anniversary of GeForce® 256, the world's first GPU[16] Professional Visualization Professional Visualization revenue increased 17% YoY to $486 million, driven by Omniverse adoption for digital twins and industrial AI. Professional Visualization Revenue (Q3 FY2025) | Metric | Value | Q/Q Change | Y/Y Change | | :--- | :--- | :--- | :--- | | Revenue | $486 million | +7% | +17% | - Foxconn is using digital twins and industrial AI built on NVIDIA Omniverse™ to accelerate the launch of three factories manufacturing NVIDIA GB200 Grace Blackwell Superchips[18] - Leading industrial manufacturers in India (Reliance, Ola Motors) and Japan (Toyota, Yaskawa) are using NVIDIA AI and Omniverse to automate workflows[19] Automotive and Robotics Automotive and Robotics revenue surged 72% YoY to $449 million, boosted by new automotive platforms and the introduction of Project GR00T for robotics. Automotive Revenue (Q3 FY2025) | Metric | Value | Q/Q Change | Y/Y Change | | :--- | :--- | :--- | :--- | | Revenue | $449 million | +30% | +72% | - Volvo is releasing a new electric SUV built on NVIDIA accelerated computing[20] - Introduced Project GR00T AI and simulation tools for robot learning and humanoid development[20] Financial Statements NVIDIA's financial statements reflect robust health, with significant growth in revenue, net income, assets, and cash flows. Condensed Consolidated Statements of Income Q3 FY2025 income statement shows total revenue of $35.1 billion and net income of $19.3 billion, significantly up from the prior year. Income Statement Highlights (Unaudited, in millions, except per share data) | | Three Months Ended Oct 27, 2024 | Three Months Ended Oct 29, 2023 | | :--- | :--- | :--- | | Revenue | $35,082 | $18,120 | | Gross Profit | $26,156 | $13,400 | | Operating Income | $21,869 | $10,417 | | Net Income | $19,309 | $9,243 | | Diluted EPS | $0.78 | $0.37 | Condensed Consolidated Balance Sheets The balance sheet as of October 27, 2024, shows total assets at $96.0 billion and shareholders' equity at $65.9 billion, reflecting strong financial position. Balance Sheet Highlights (Unaudited, in millions) | | Oct 27, 2024 | Jan 28, 2024 | | :--- | :--- | :--- | | Total current assets | $67,640 | $44,345 | | Total assets | $96,013 | $65,728 | | Total current liabilities | $16,479 | $10,631 | | Total liabilities | $30,114 | $22,750 | | Total shareholders' equity | $65,899 | $42,978 | Condensed Consolidated Statements of Cash Flows Nine-month cash flow statement indicates $47.5 billion in operating cash and $45.2 billion in free cash flow, demonstrating robust liquidity. Cash Flow Highlights (Unaudited, in millions) | | Nine Months Ended Oct 27, 2024 | Nine Months Ended Oct 29, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $47,460 | $16,591 | | Net cash used in investing activities | ($13,223) | ($4,477) | | Net cash used in financing activities | ($32,410) | ($10,004) | GAAP to Non-GAAP Reconciliation This section details adjustments to reconcile GAAP to non-GAAP financial measures for clearer operational insights. Reconciliation of GAAP to Non-GAAP Financial Measures Q3 FY2025 GAAP net income of $19.3 billion was reconciled to non-GAAP net income of $20.0 billion, primarily due to stock-based compensation adjustments. Q3 FY2025 GAAP to Non-GAAP Reconciliation (in millions, except per share data) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Gross Profit | $26,156 | $166 | $26,322 | | Operating Income | $21,869 | $1,407 | $23,276 | | Net Income | $19,309 | $701 | $20,010 | | Diluted EPS | $0.78 | $0.03 | $0.81 | Q3 FY2025 Free Cash Flow (in millions) | | Amount | | :--- | :--- | | Net cash provided by operating activities | $17,629 | | Less: Purchases of property and equipment | ($813) | | Less: Principal payments on property and equipment | ($29) | | Free cash flow | $16,787 | Reconciliation of GAAP to Non-GAAP Outlook Q4 FY2025 outlook reconciles GAAP gross margin of 73.0% to non-GAAP 73.5%, with operating expense adjustments for stock-based compensation. Q4 FY2025 Outlook Reconciliation | Metric | GAAP Outlook | Adjustments | Non-GAAP Outlook | | :--- | :--- | :--- | :--- | | Gross Margin | 73.0% | 0.5% | 73.5% | | Operating Expenses | $4,750M | ($1,350M) | $3,400M |