NVIDIA Stock Gains as Q4 Earnings and Revenues Beat Estimates

Core Viewpoint - NVIDIA Corporation reported better-than-expected results for the fourth quarter of fiscal 2025, with shares trading 1% higher in pre-market [1] Financial Performance - Non-GAAP earnings were 89 cents per share, exceeding the Zacks Consensus Estimate by 5.95%, reflecting a 71% year-over-year increase and a 10% sequential increase [1] - Fiscal fourth-quarter revenues reached $39.33 billion, a 78% year-over-year increase and a 12% sequential increase, surpassing the consensus estimate of $37.72 billion [3] Segment Performance - The Graphics segment accounted for 8% of revenues, with a decline of 22% year over year and 19% sequentially to $3.3 billion, below the estimate of $4.82 billion [5] - Compute & Networking represented 92% of revenues, with a 101% year-over-year increase and a 16% sequential increase to $36.04 billion, exceeding the estimate of $32.68 billion [7] - Data Center revenues, making up 90.5% of total revenues, increased 93% year over year and 16% sequentially to $35.58 billion, driven by higher shipments of advanced GPU platforms [8][9] Operating Metrics - Non-GAAP gross margin was 73.5%, down 320 basis points year over year and 150 basis points sequentially, attributed to a shift to more complex systems [13] - Non-GAAP operating expenses rose 53% year over year and 11% sequentially to $3.38 billion, but as a percentage of total revenues, they decreased to 8.6% from 10% a year ago [14] - Non-GAAP operating income increased 73% year over year and 10% sequentially to $25.52 billion, with a non-GAAP operating margin of 64.9% [15] Cash Flow and Shareholder Returns - NVIDIA generated $16.6 billion in operating cash flow for the fourth quarter, up from $11.5 billion year over year but down from $17.6 billion sequentially [17] - The company returned $245 million to shareholders through dividends and repurchased $8.1 billion in stocks during the fourth quarter [18] Future Guidance - For Q1 2026, NVIDIA anticipates revenues of $43 billion (+/-2%), higher than the Zacks Consensus Estimate of $41.06 billion, with a projected non-GAAP gross margin of 71% (+/-50 bps) [20]