Executive Summary
NVIDIA delivered a standout QQ4 2025 performance with revenue of $39.33 billion, up 30.93% year-over-year and 12.11% quarter-over-quarter. The gross margin stood at approximately 73.03%, with operating and net margins at 61.11% and 56.17% respectively, underscoring the sustained profitability of AI-dominated demand across data center, gaming, and professional visualization markets. Cash generation remained exceptionally strong, with operating cash flow of $16.63 billion and free cash flow of about $15.55 billion, enabling meaningful capital allocation through stock repurchases and a modest dividend.
The balance sheet remains pristine, highlighted by a deep liquidity position (cash and short-term investments ~ $43.21B) and modest leverage (total debt ~$10.27B; debt-related metrics imply a healthy cushion given the cash hoard). Relative valuations remain elevated by traditional metrics, reflecting Nvidia’s entrenched leadership in AI accelerators and software ecosystems (CUDA, Omniverse, NVIDIA AI Enterprise). The quarterly results reinforce the company’s revenue engine centered on data center AI/accelerated computing, which supports durable cash flows, high margins, and a robust ROE profile.
Looking ahead, the company’s AI compute cycle appears poised to persist given hyperscaler capex trajectories and increasing AI adoption across cloud, enterprise, and automotive segments. Key risk factors include potential cyclical softness in AI workloads, competitive pressure from AMD/Intel and emerging AI hardware entrants, and broader macro/Geopolitical dynamics affecting supply chains and customer spending. Investor attention should focus on data center revenue growth, product cycle momentum, software ecosystem adoption, and capital allocation strategy (buybacks vs. investment).
Key Performance Indicators
Key Insights
Revenue: $39.331B; YoY +30.93%; QoQ +12.11%. Gross Profit: $28.723B; YoY +27.24%; QoQ +9.81%; Gross Margin ~73.03%. Operating Income: $24.034B; YoY +28.92%; QoQ +9.90%; Operating Margin 61.11%. Net Income: $22.091B; YoY +33.09%; QoQ +14.41%; Net Margin 56.17%. Earnings per Share (EPS): $0.90; Diluted EPS: $0.89 (weighted avg shares ~24.489B). EBITDA: $25.821B; EBITDA Margin ~65.65%. Free Cash Flow: $15.552B; Operating Cash Flow: $16.629B; Capex: $1.077B; FCF/Capex ~14.4x....
Financial Highlights
Revenue: $39.331B; YoY +30.93%; QoQ +12.11%. Gross Profit: $28.723B; YoY +27.24%; QoQ +9.81%; Gross Margin ~73.03%. Operating Income: $24.034B; YoY +28.92%; QoQ +9.90%; Operating Margin 61.11%. Net Income: $22.091B; YoY +33.09%; QoQ +14.41%; Net Margin 56.17%. Earnings per Share (EPS): $0.90; Diluted EPS: $0.89 (weighted avg shares ~24.489B). EBITDA: $25.821B; EBITDA Margin ~65.65%. Free Cash Flow: $15.552B; Operating Cash Flow: $16.629B; Capex: $1.077B; FCF/Capex ~14.4x.
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 |
34.33% |
13.92% |
Key Financial Ratios
operatingProfitMargin
61.1%
operatingCashFlowPerShare
$0.68
freeCashFlowPerShare
$0.64
dividendPayoutRatio
1.11%
Management Commentary
No earnings call transcript data provided in the dataset. As a result, management quotes and thematic guidance from the QQ4 2025 call could not be incorporated here. If transcript access is supplied, a themes-based synthesis (strategy, operations, market conditions) with direct quotes can be added.
No transcript data available.
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No transcript data available.
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Forward Guidance
There is no numeric forward guidance in the provided transcript data. Based on the reported results and industry dynamics, the baseline assumption is continued strength in AI compute demand driven by hyperscalers and enterprises expanding AI workloads, which should support data center revenue growth and healthy margins in fiscal 2026. Potential catalysts include: ongoing CUDA ecosystem expansion, NVIDIA AI Enterprise software adoption, and the Omniverse platform enabling enterprise-grade collaboration. Risks to outlook include a possible cooldown in AI compute spending, heightened competition in AI accelerators (e.g., from AMD/Intel and new entrants), potential supply chain constraints, and macroeconomic headwinds affecting capex budgets. Investors should monitor: (1) data center revenue trajectory and mix (HPC/AI vs other), (2) product cycle momentum and new GPU architectures, (3) software monetization via CUDA ecosystem and enterprise licenses, (4) capital allocation policy (buybacks vs strategic investments), and (5) regulatory/supply chain developments that could impact AI hardware demand.