A Record-Setting Quarter for NVIDIA
NVIDIA has shattered expectations with its financial results for Q3 FY2025, reporting a staggering $35.1 billion in revenue. This marks a 17% rise from the previous quarter and an extraordinary 94% increase year-over-year. The company’s record-breaking Data Center revenue, at $30.8 billion, underscores its pivotal role in powering the global shift to AI-driven computing.
A Deeper Look at the Numbers
NVIDIA’s financial results reveal a story of sustained growth across all major segments. Here’s a snapshot of the key metrics:
| Metric | Q3 FY2025 | Q2 FY2025 | Q3 FY2024 | Quarterly Growth | Yearly Growth |
|---|---|---|---|---|---|
| Total Revenue | $35.1B | $30.0B | $18.1B | +17% | +94% |
| Data Center Revenue | $30.8B | $26.3B | $14.5B | +17% | +112% |
| Gaming Revenue | $3.3B | $2.9B | $2.8B | +14% | +15% |
| Automotive Revenue | $449M | $345M | $261M | +30% | +72% |
The Data Center’s performance was especially noteworthy, fueled by increasing demand for AI computing capabilities and the introduction of new cutting-edge products.
What’s Driving NVIDIA’s Success?
NVIDIA’s impressive growth can be attributed to its strategic focus on AI, accelerated computing, and global partnerships.
1. The AI Revolution is in Full Swing
CEO Jensen Huang highlighted that “The age of AI is in full steam.” NVIDIA’s advancements in AI are driving major shifts across industries:
- Product Innovations: Technologies like the Hopper H200 GPU and the upcoming Blackwell platform are setting new benchmarks for performance.
- AI Infrastructure: Partnerships with cloud providers like AWS and Microsoft Azure are expanding access to NVIDIA-powered solutions.
2. Expanding Market Reach
NVIDIA’s efforts to scale AI adoption globally are evident:
- Deployment of AI supercomputers in Denmark, Taiwan, and Japan.
- Collaboration with leading companies like T-Mobile, Ericsson, and Foxconn.
Beyond AI: Gaming and Automotive Growth
While Data Center revenue took center stage, NVIDIA’s Gaming and Automotive segments also delivered solid results.
Gaming Innovations
Celebrating 25 years of the GeForce GPU, NVIDIA unveiled exciting advancements:
- Enhanced in-game character interaction through NVIDIA ACE technologies.
- New AI-powered PCs from ASUS and MSI, promising a revolutionary gaming experience.
Automotive Momentum
The Automotive sector achieved $449 million in revenue, reflecting a 72% year-over-year increase. This growth is driven by:
- New partnerships with industry giants like Toyota and Volvo.
- Cutting-edge robotics tools like Project GR00T for AI-powered development.
Looking Ahead: NVIDIA’s Outlook for Q4 FY2025
NVIDIA projects Q4 FY2025 revenue to reach $37.5 billion, with gross margins expected around 73.5%. The company is doubling down on innovation with its AI-focused platforms and next-gen technologies like Blackwell GPUs.
Why NVIDIA’s Growth Matters
NVIDIA’s success isn’t just about numbers; it’s reshaping industries and empowering businesses to harness the potential of AI. From telecommunications to gaming and automotive, NVIDIA’s innovations are setting the stage for the next generation of technological breakthroughs.
Key Takeaways
- Unprecedented Revenue Growth: NVIDIA’s $35.1 billion revenue marks a pivotal moment in the company’s history.
- AI Leadership: As industries embrace AI, NVIDIA remains at the forefront, fueling transformation and innovation worldwide.
NVIDIA’s Q3 results are a testament to its vision of an AI-driven future, ensuring it stays ahead in the race for technological supremacy.
Income Statement
| Three Months Ended | Oct 27, 2024 | Oct 29, 2023 | Change |
|---|---|---|---|
| Revenue | $35,082 | $18,120 | 93.6% |
| Cost of Revenue | $8,926 | $4,720 | 89.2% |
| Gross Profit | $26,156 | $13,400 | 95.1% |
| Operating Expenses | $4,287 | $2,983 | 43.9% |
| Operating Income | $21,869 | $10,417 | 110.1% |
| Net Income | $19,309 | $9,243 | 108.8% |
Nine Months Ended
| Nine Months Ended | Oct 27, 2024 | Oct 29, 2023 | Change |
|---|---|---|---|
| Revenue | $91,166 | $38,819 | 135.1% |
| Cost of Revenue | $22,031 | $11,309 | 94.9% |
| Gross Profit | $69,135 | $27,510 | 151.3% |
| Operating Expenses | $11,716 | $8,152 | 43.8% |
| Operating Income | $57,419 | $19,358 | 196.7% |
| Net Income | $50,789 | $17,475 | 190.7% |
Balance Sheet
| As of | Oct 27, 2024 | Jan 28, 2024 | Change |
|---|---|---|---|
| Cash and Marketable Securities | $38,487 | $25,984 | 48.2% |
| Accounts Receivable | $17,693 | $9,999 | 76.9% |
| Inventories | $7,654 | $5,282 | 45.0% |
| Total Assets | $96,013 | $65,728 | 46.1% |
| Total Liabilities | $30,114 | $22,750 | 32.4% |
| Shareholders’ Equity | $65,899 | $42,978 | 53.3% |
Cash Flow Statement
| Three Months Ended | Oct 27, 2024 | Oct 29, 2023 | Change |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $17,629 | $7,333 | 140.2% |
| Net Cash Used in Investing Activities | ($4,345) | ($3,169) | 37.1% |
| Net Cash Used in Financing Activities | ($12,748) | ($4,527) | 181.5% |
Non-GAAP Reconciliation
| Three Months Ended | Oct 27, 2024 | Oct 29, 2023 | Change |
|---|---|---|---|
| Non-GAAP Gross Profit | $26,322 | $13,583 | 93.8% |
| Non-GAAP Operating Expenses | $3,046 | $2,026 | 50.3% |
| Non-GAAP Operating Income | $23,276 | $11,557 | 101.6% |
| Non-GAAP Net Income | $20,010 | $10,020 | 99.8% |
Q4 FY2025 Outlook
| Category | GAAP | Non-GAAP Adjustments | Non-GAAP |
|---|---|---|---|
| Gross Margin | 73.0% | 0.5% | 73.5% |
| Operating Expenses | $4,750 | ($1,350) | $3,400 |
Condensed Consolidated Balance Sheets
| As of | Oct 27, 2024 | Jan 28, 2024 | Change |
|---|---|---|---|
| Cash, Cash Equivalents, and Marketable Securities | $38,487 | $25,984 | 48.2% |
| Accounts Receivable, Net | $17,693 | $9,999 | 76.9% |
| Inventories | $7,654 | $5,282 | 45.0% |
| Prepaid Expenses and Other Current Assets | $3,806 | $3,080 | 23.5% |
| Total Current Assets | $67,640 | $44,345 | 52.6% |
| Property and Equipment, Net | $5,343 | $3,914 | 36.5% |
| Operating Lease Assets | $1,755 | $1,346 | 30.3% |
| Goodwill | $4,724 | $4,430 | 6.6% |
| Intangible Assets, Net | $838 | $1,112 | -24.6% |
| Deferred Income Tax Assets | $10,276 | $6,081 | 69.2% |
| Other Assets | $5,437 | $4,500 | 20.8% |
| Total Assets | $96,013 | $65,728 | 46.1% |
| Accounts Payable | $5,353 | $2,699 | 98.5% |
| Accrued and Other Current Liabilities | $11,126 | $6,682 | 66.5% |
| Short-term Debt | $0 | $1,250 | -100% |
| Total Current Liabilities | $16,479 | $10,631 | 55.1% |
| Long-term Debt | $8,462 | $8,459 | 0.04% |
| Long-term Operating Lease Liabilities | $1,490 | $1,119 | 33.2% |
| Other Long-term Liabilities | $3,683 | $2,541 | 45% |
| Total Liabilities | $30,114 | $22,750 | 32.4% |
| Shareholders’ Equity | $65,899 | $42,978 | 53.3% |
Condensed Consolidated Statements of Cash Flows
Three Months Ended
| Category | Oct 27, 2024 | Oct 29, 2023 | Change |
|---|---|---|---|
| Net Income | $19,309 | $9,243 | 108.8% |
| Adjustments to Reconcile Net Income to Net Cash | |||
| Stock-based Compensation Expense | $1,252 | $979 | 27.9% |
| Depreciation and Amortization | $478 | $372 | 28.5% |
| Net Cash Provided by Operating Activities | $17,629 | $7,333 | 140.2% |
| Proceeds from Maturities of Marketable Securities | $1,386 | $2,891 | -52.1% |
| Net Cash Used in Investing Activities | ($4,345) | ($3,169) | 37.1% |
| Proceeds Related to Employee Stock Plans | $204 | $156 | 30.8% |
| Net Cash Used in Financing Activities | ($12,748) | ($4,527) | 181.5% |
Nine Months Ended
| Category | Oct 27, 2024 | Oct 29, 2023 | Change |
|---|---|---|---|
| Net Income | $50,789 | $17,475 | 190.7% |
| Adjustments to Reconcile Net Income to Net Cash | |||
| Stock-based Compensation Expense | $3,416 | $2,555 | 33.7% |
| Depreciation and Amortization | $1,321 | $1,121 | 17.8% |
| Net Cash Provided by Operating Activities | $47,460 | $16,591 | 185.9% |
| Proceeds from Maturities of Marketable Securities | $9,485 | $8,001 | 18.5% |
| Net Cash Used in Investing Activities | ($13,223) | ($4,457) | 196.9% |
| Proceeds Related to Employee Stock Plans | $489 | $403 | 21.3% |
| Net Cash Used in Financing Activities | ($32,410) | ($10,004) | 223.9% |
Please note this data is condensed from the original NVIDIA balance sheet data but it may not be complete. Though we have tried to be as accurate as possible, please use your own judgement and double check if needed.
