Nvidia disclosed its financial results for the fourth fiscal quarter on February 26, 2025, reporting $39.3 billion in revenue, $0.89 adjusted earnings per share, and $22.1 billion of net income. The results provide insights into Nvidia’s performance amid the backdrop of the recent release of the less tech-intensive DeepSeek AI model from China, which previously resulted in the company experiencing the largest single-day market value loss in stock market history.
Nvidia’s strong financial performance
The company reported revenue of $39.3 billion for the fourth quarter, exceeding consensus analyst estimates of $38.1 billion. This represents a year-over-year revenue growth of 78% and profit growth of 71%. Nvidia’s datacenter unit, which includes the graphics processing units (GPUs) that power most generative AI models, generated $35.6 billion in sales, surpassing forecasts of $33.5 billion.
Nvidia anticipates spring quarter revenue to reach approximately $43 billion, in line with Wall Street estimates of $42.7 billion.
This quarter marks the weakest top and bottom-line growth for Nvidia since the quarter ending April 2023, although its growth remains robust compared to competitors. For context, Apple recently reported only 4% revenue growth and 10% profit expansion.
Prior to the earnings report, Nvidia shares rose nearly 4% to close at $131.28, although the stock faced a decline of approximately 10% over the previous month, partly due to market reactions following the DeepSeek AI release. The stock was trading around 10% below its levels before the prior earnings report in November.
Revenue breakdown and outlook
Nvidia’s earnings call revealed detailed financial metrics. Data center revenue for fiscal 2025 reached $115.2 billion, more than doubling from the prior year, spurred by demand for Blackwell and Hopper 200 products. The Blackwell product ramp is noted as the fastest in the company’s history, generating $11 billion in revenue during the fourth quarter alone.
Gaming revenue was reported at $2.5 billion for the fourth quarter, down 22% sequentially and 11% year-on-year, while full-year gaming revenue was up 9% at $11.4 billion. Professional visualization revenue increased to $511 million in Q4, marking a 10% year-on-year rise. Automotive revenue surged by 103% year-on-year to $570 million for the fourth quarter, with full-year automotive revenue hitting $1.7 billion, up 55% from the previous year.
Gross margins were reported as 73% under GAAP, with a non-GAAP gross margin of 73.5% for the fourth quarter. Operating expenses rose by 9% sequentially under GAAP, while they increased by 11% non-GAAP.
In total, Nvidia returned $8.1 billion to shareholders during the fourth quarter through share repurchases and cash dividends. The company’s outlook for Q1 includes expected revenue in the range of $43 billion, with GAAP and non-GAAP gross margins anticipated to be 70.6% and 71%, respectively.
Despite declines in networking revenue by 3%, projections suggest a return to growth in the upcoming quarter. Additionally, Nvidia’s gaming revenue has been impacted by supply constraints, and sales from China’s data centers remain below prior levels due to ongoing export controls, presenting challenges in manufacturing and gross margin improvements.
During the earnings call, CEO Jensen Huang addressed questions about the company’s strategy regarding machine learning and the simultaneous ramp-up of their Blackwell and Blackwell Ultra systems, indicating the importance of NVIDIA’s architecture in meeting increasing demands for AI workloads.
At a glance:
- Nvidia reported fourth-quarter revenue of $39.3 billion, exceeding analyst estimates.
- The company’s revenue grew 78% year-over-year, with profit growth of 71%.
- Datacenter unit sales reached $35.6 billion, surpassing forecasts.
- Nvidia expects spring quarter revenue to be around $43 billion.
- Full fiscal year data center revenue was $115.2 billion, more than doubling from the prior year.
- Gaming revenue for the fourth quarter was $2.5 billion, down year-on-year.
- Professional visualization revenue for the fourth quarter was $511 million.
- Automotive revenue for the fourth quarter was $570 million, up 103% year-on-year.
- Nvidia returned $8.1 billion to shareholders through share repurchases and cash dividends.
Featured image credit: Nvidia
