NVIDIA Reports Record Financial Results for Q3 Fiscal 2025

Financial Trends
November 20, 2024

NVIDIA has announced its financial results for the third quarter of fiscal 2025, showcasing impressive growth driven by the increasing demand for AI technologies. The company reported record revenues and significant gains in its data center segment, reflecting the ongoing transformation in computing driven by artificial intelligence.

Key Takeaways

Record quarterly revenue of $35.1 billion, up 17% from Q2 and up 94% year-over-year.
Data Center revenue reached $30.8 billion, marking a 17% increase from Q2 and a 112% increase from the previous year.
GAAP earnings per diluted share were $0.78, up 16% from the previous quarter and up 111% year-over-year.
Non-GAAP earnings per diluted share were $0.81, up 19% from Q2 and up 103% from a year ago.

Financial Performance Overview

NVIDIA’s financial results for the third quarter ended October 27, 2024, highlight the company’s robust performance:

Metric	Q3 FY25	Q2 FY25	Q3 FY24	Q/Q Change	Y/Y Change
Revenue	$35.1 billion	$30.0 billion	$18.1 billion	Up 17%	Up 94%
Gross Margin	74.6%	75.1%	74.0%	Down 0.5 pts	Up 0.6 pts
Operating Income	$21.9 billion	$18.6 billion	$10.4 billion	Up 17%	Up 110%
Net Income	$19.3 billion	$16.6 billion	$9.2 billion	Up 16%	Up 109%
Diluted Earnings Per Share	$0.78	$0.67	$0.37	Up 16%	Up 111%

Strategic Insights

Jensen Huang, NVIDIA’s founder and CEO, emphasized the transformative impact of AI across various sectors. He stated, “The age of AI is in full steam, propelling a global shift to NVIDIA computing. Demand for Hopper and anticipation for Blackwell are incredible as foundation model makers scale pretraining, post-training, and inference.”

The company is witnessing a surge in enterprise adoption of AI technologies, with significant investments in industrial robotics and national AI infrastructure development.

Future Outlook

Looking ahead, NVIDIA projects continued growth:

Q4 FY25 Revenue Forecast: Expected to be around $37.5 billion, plus or minus 2%.
Gross Margins: Anticipated to be 73.0% for GAAP and 73.5% for non-GAAP.
Operating Expenses: Expected to be approximately $4.8 billion for GAAP and $3.4 billion for non-GAAP.

Conclusion

NVIDIA’s third-quarter results underscore its leadership in the AI sector, with record revenues and a strong outlook for future growth. The company’s commitment to innovation and strategic investments in AI technologies position it well for continued success in the rapidly evolving tech landscape.