NVIDIA Q4 Revenue Soars 78%, Blackwell Generates Over $11B

On February 26, 2025, NVIDIA, the leader in AI chips, reported its fiscal fourth-quarter results for the 2025 financial year, which ended on January 26, 2025. Both the overall performance and the quarterly guidance exceeded market expectations. NVIDIA's new Blackwell product line drove revenue to $11 billion, surpassing forecasts. However, despite this strong performance, the growth rate showed signs of slowing, and the gross margin also declined. Following the announcement, NVIDIA's stock price dropped 1.51% in after-hours trading.

Specifically, NVIDIA's fourth-quarter revenue for the 2025 fiscal year reached $39.3 billion, marking a remarkable 78% year-over-year increase and a 12% quarter-over-quarter rise, surpassing analyst expectations of $38.1 billion according to FactSet. The GAAP net income was $22.09 billion, reflecting an 80% year-over-year increase and a 14% quarter-over-quarter rise. GAAP diluted earnings per share (EPS) were $0.89, an 82% increase from the previous year and up 14% from the prior quarter. Non-GAAP net income was $22.07 billion, a 72% year-over-year increase and 10% quarter-over-quarter growth. Non-GAAP diluted EPS was $0.89, surpassing analyst expectations of $0.85. However, Non-GAAP gross margin declined to 73.5%, down 1.5 percentage points from the previous quarter and 3.2 percentage points from the same quarter last year.

Looking at specific business performance, the data center segment continued to be the largest growth driver.

In the data center segment, revenue reached a record $35.6 billion in the fourth quarter, increasing by 16% quarter-over-quarter and soaring 93% year-over-year. Notably, NVIDIA also announced its role as a key technology partner in the $500 billion Stargate project during the quarter.

In the gaming and AI PC segment, revenue for the fourth quarter was $2.5 billion, marking a 22% decline from the previous quarter and an 11% year-over-year decrease. This was largely attributed to supply shortages of new GeForce RTX™50 series graphics cards based on the NVIDIA Blackwell architecture, as well as issues such as "black screens" and problems with the RTX 5090/5070Ti GPUs, which had missing ROPs.

In professional visualization, revenue for the fourth quarter was $511 million, up 5% from the previous quarter and 10% year-over-year.

In the automotive and robotics segment, revenue hit $570 million in the fourth quarter, increasing 27% quarter-over-quarter and an impressive 103% year-over-year. NVIDIA's chips are now integral to nearly all autonomous driving development platforms.

For the full fiscal year 2025, NVIDIA reported revenue of $130.5 billion, a staggering 114% increase from the previous year's $60.92 billion. GAAP net income was $72.88 billion, a 145% year-over-year increase, while GAAP diluted EPS reached $2.94, a 147% increase. Non-GAAP net income amounted to $74.27 billion, a 130% increase from the previous year.

Breaking down the performance by segment for the full fiscal year:

· Data Center: Revenue skyrocketed by 142%, reaching a record $115.2 billion.

· Gaming and AI PCs: Revenue increased by 9%, totaling $11.4 billion.

· Professional Visualization: Revenue grew by 21%, reaching $1.9 billion.

· Automotive and Robotics: Revenue rose by 55%, reaching $1.7 billion.

NVIDIA's adjusted gross margin for the fourth quarter declined to 73.5%, down from 75% in the previous quarter and 76.7% a year earlier. Colette Kress, CFO, explained that the drop was primarily due to a shift in the data center segment towards more complex and costlier systems.

Looking ahead, NVIDIA projects first-quarter revenue for fiscal year 2026 to be $43 billion, with a margin variance of ±2%. GAAP and non-GAAP gross margins are expected to be 70.6% and 71.0%, respectively, with a variance of ±50 basis points. Operating expenses are forecasted to be approximately $5.2 billion on a GAAP basis and $3.6 billion on a non-GAAP basis. Other income and expenses are expected to be around $400 million, excluding market and publicly-held equity securities gains and losses. The tax rate is anticipated to be 17.0%, with a ±1% variance, excluding any discrete items.

Colette Kress also stated that the adjusted gross margin for the current quarter is expected to be 71%, and as production ramps up for Blackwell, the margin is expected to exceed 70%. She further anticipated a rebound in gross margins to around 75% later in the fiscal year.