NVIDIA's Q2 Revenue Soars 55% to $46.7B, Net Income Up 59%

TL;DR

**NVDA is printing money, buy the dip if you can find one, because this AI wave isn't slowing down.**

AI Summary

NVIDIA Corporation reported robust financial performance for the three and six months ended July 27, 2025. Revenue for the three months increased significantly to $46.743 billion from $30.040 billion in the prior year, marking a 55.6% increase. Net income for the quarter also saw a substantial rise to $26.422 billion, up 59.2% from $16.599 billion in the same period last year. For the six months, revenue reached $90.805 billion, a 61.9% increase from $56.084 billion, and net income grew to $45.197 billion, up 43.6% from $31.480 billion. Operating expenses increased to $5.413 billion for the quarter and $10.443 billion for the six months, driven by higher research and development and sales, general and administrative costs. The company's balance sheet shows total assets of $140.740 billion as of July 27, 2025, up from $111.601 billion at January 26, 2025, with cash and cash equivalents at $11.639 billion. Share repurchases amounted to $9.599 billion for the three months and $24.010 billion for the six months ended July 27, 2025. The effective tax rate increased to 15.3% for the quarter and 14.9% for the six months, primarily due to a lower tax benefit from stock-based compensation, partially offset by foreign-derived deduction eligible income.

Why It Matters

NVIDIA's exceptional growth in revenue and net income underscores its dominant position in the AI and data center markets, signaling continued strong demand for its high-performance GPUs. This performance could further solidify investor confidence, potentially driving NVDA's stock higher and impacting the broader technology sector as competitors like AMD and Intel vie for market share. For employees, this robust growth suggests job security and potential for increased compensation, while customers can expect continued innovation in AI and graphics technologies. The substantial share repurchases, totaling $24.010 billion in six months, also indicate management's confidence and commitment to returning value to shareholders, potentially influencing other tech giants' capital allocation strategies.

Risk Assessment

Risk Level: low — NVIDIA's financial health is exceptionally strong, with net income of $26.422 billion for the quarter and $45.197 billion for the six months ended July 27, 2025. The company's cash and cash equivalents increased to $11.639 billion, and total assets grew to $140.740 billion. While operating expenses and inventory increased, these are largely in line with rapid revenue growth and strategic investments, indicating controlled expansion rather than distress.

Analyst Insight

Investors should consider maintaining or increasing their exposure to NVIDIA, given its strong financial performance and dominant market position in high-growth sectors like AI. Monitor future earnings reports for sustained growth rates and any shifts in gross margins, as well as competitive developments from rivals like AMD and Intel.

Financial Highlights

debt To Equity

Not Disclosed

revenue

$46.743B

operating Margin

60.85%

total Assets

$140.740B

total Debt

$8.466B

net Income

$26.422B

eps

$1.08

gross Margin

72.42%

cash Position

$11.639B

revenue Growth

+55.6%

Revenue Breakdown

Key Numbers

• $46.743B — Revenue (55.6% increase for the three months ended July 27, 2025, compared to $30.040 billion in the prior year.)
• $26.422B — Net Income (59.2% increase for the three months ended July 27, 2025, compared to $16.599 billion in the prior year.)
• $90.805B — Six-Month Revenue (61.9% increase for the six months ended July 27, 2025, compared to $56.084 billion in the prior year.)
• $45.197B — Six-Month Net Income (43.6% increase for the six months ended July 27, 2025, compared to $31.480 billion in the prior year.)
• $140.740B — Total Assets (As of July 27, 2025, up from $111.601 billion at January 26, 2025.)
• $11.639B — Cash and Cash Equivalents (As of July 27, 2025, up from $8.589 billion at January 26, 2025.)
• $24.010B — Share Repurchases (For the six months ended July 27, 2025, demonstrating capital return to shareholders.)
• 15.3% — Effective Tax Rate (For the three months ended July 27, 2025, an increase from 13.6% in the prior year.)
• 24.3 billion — Common Stock Outstanding (As of August 22, 2025.)
• $14.0B — Unearned Stock-Based Compensation (As of July 27, 2025, to be recognized over a weighted average period of 2.2 years.)

Key Players & Entities

• NVIDIA Corporation (company) — registrant
• SEC (regulator) — Securities and Exchange Commission
• Nasdaq Global Select Market (company) — exchange where NVDA is registered
• FASB (regulator) — Financial Accounting Standards Board
• One Big Beautiful Bill Act (OBBBA) (regulator) — newly enacted U.S. federal income tax law
• AMD (company) — competitor
• Intel (company) — competitor
• $46.743 billion (dollar_amount) — revenue for three months ended Jul 27, 2025
• $26.422 billion (dollar_amount) — net income for three months ended Jul 27, 2025
• $140.740 billion (dollar_amount) — total assets as of Jul 27, 2025

FAQ

Risk Factors

• Intense Competition [high — market]: The market for GPUs and AI accelerators is highly competitive, with significant players like AMD and Intel, as well as emerging threats from cloud providers developing their own custom silicon. NVIDIA's continued market leadership depends on maintaining technological superiority and rapid innovation.
• Export Controls and Geopolitical Tensions [high — regulatory]: NVIDIA is subject to U.S. export control regulations, particularly concerning sales to China. Geopolitical tensions and potential further restrictions could materially impact revenue from key international markets.
• Supply Chain Disruptions [medium — operational]: The company relies on a complex global supply chain for manufacturing its products. Any disruptions, whether due to geopolitical events, natural disasters, or component shortages, could affect production and delivery timelines.
• Foreign Currency Fluctuations [low — financial]: As a global company, NVIDIA is exposed to foreign currency exchange rate fluctuations, which can impact reported revenues and expenses when translated into U.S. dollars. The effective tax rate also saw an increase due to factors like foreign-derived deduction eligible income.
• Intellectual Property Disputes [low — legal]: NVIDIA's technology is subject to intellectual property protection. The company may face claims of infringement or be involved in litigation to protect its patents and proprietary information.

Industry Context

NVIDIA operates in the highly dynamic semiconductor industry, particularly dominant in the AI and accelerated computing space. The demand for its GPUs is fueled by the exponential growth in AI model training and inference, data center expansion, and high-performance computing. Key competitors include AMD, Intel, and custom silicon solutions from major cloud providers, intensifying the race for technological innovation and market share.

Regulatory Implications

NVIDIA faces significant regulatory scrutiny, particularly concerning U.S. export controls impacting sales to China and other restricted regions. Compliance with these regulations is critical to maintaining access to major markets. Additionally, ongoing antitrust reviews and potential regulations around AI development could pose future challenges.

What Investors Should Do

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Key Dates

• 2025-07-27: End of Q2 Fiscal Year 2026 — Reported strong revenue and net income growth, driven by AI demand.
• 2025-01-26: End of Q4 Fiscal Year 2025 — Previous balance sheet date, showing growth in total assets.
• 2025-08-22: Date of Common Stock Outstanding Disclosure — Indicates the number of shares outstanding for EPS calculations.

Glossary

Operating income

Profitability from a company's core business operations before accounting for interest and taxes. (Shows the strength of NVIDIA's core business, which grew to $28.440 billion for the quarter.)

Other income (expense), net

Includes various non-operating income and expense items, such as interest income, interest expense, and gains/losses from investments. (Significantly boosted by $2.236 billion in other income for the quarter, contributing to overall profitability.)

Income tax expense

The amount of taxes a company expects to pay on its pre-tax income. (Increased to $4.784 billion for the quarter, reflecting a higher effective tax rate of 15.3%.)

Diluted Net Income Per Share

Net income per share after accounting for all dilutive potential common shares, such as stock options and convertible securities. (Reported at $1.08 for the quarter, indicating strong earnings power on a per-share basis.)

Marketable securities

Investments in financial instruments that can be easily bought or sold on public exchanges. (Increased to $45.152 billion as of July 27, 2025, indicating significant investment holdings.)

Unearned Stock-Based Compensation

The value of stock options and awards granted to employees that have not yet been recognized as an expense. (A substantial $14.0 billion is yet to be expensed, representing future potential dilution and compensation costs.)

Year-Over-Year Comparison

NVIDIA has demonstrated exceptional year-over-year growth, with revenue for the three months ended July 27, 2025, surging by 55.6% to $46.743 billion, and net income rising by 59.2% to $26.422 billion. This performance is a significant acceleration compared to the prior year's periods. Total assets have also grown substantially, up to $140.740 billion from $111.601 billion, indicating expansion and investment. The effective tax rate has seen a slight increase to 15.3% from 13.6% in the prior year's quarter, primarily due to changes in stock-based compensation tax benefits and foreign-derived income.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share NVDA The Nasdaq Glo

Filing Documents

• nvda-20250727.htm (10-Q) — 1318KB
• ex101-2025x2026deferredrsu.htm (EX-10.1) — 76KB
• ex102-2025x2026nonxdeferre.htm (EX-10.2) — 71KB
• nvda2026q2ex311.htm (EX-31.1) — 8KB
• nvda2026q2ex312.htm (EX-31.2) — 8KB
• nvda2026q2ex321.htm (EX-32.1) — 5KB
• nvda2026q2ex322.htm (EX-32.2) — 5KB
• nvda-20250727_g1.jpg (GRAPHIC) — 7KB
• 0001045810-25-000209.txt ( ) — 7932KB
• nvda-20250727.xsd (EX-101.SCH) — 53KB
• nvda-20250727_cal.xml (EX-101.CAL) — 98KB
• nvda-20250727_def.xml (EX-101.DEF) — 222KB
• nvda-20250727_lab.xml (EX-101.LAB) — 660KB
• nvda-20250727_pre.xml (EX-101.PRE) — 461KB
• nvda-20250727_htm.xml (XML) — 1200KB

: Financial Information

Part I : Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) a) Condensed Consolidated Statements of Income for the three and six months ended July 27, 2025 and July 28, 2024 3 b) Condensed Consolidated Statements of Comprehensive Income for the three and six months ended July 27, 2025 and July 28, 2024 4 c) Condensed Consolidated Balance Sheets as of July 27, 2025 and January 26, 2025 5 d) Condensed Consolidated Statements of Shareholders' Equity for the three and six months ended July 27, 2025 and July 28, 2024 6 e) Condensed Consolidated Statements of Cash Flows for the six months ended July 27, 2025 and July 28, 2024 8 f) Notes to Condensed Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk 31

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures 32

Controls and Procedures 32

: Other Information

Part II : Other Information Item 1. Legal Proceedings 32 Item 1A. Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37 Item 5. Other Information 38 Item 6. Exhibits 39 Signature 40 Where You Can Find More Information Investors and others should note that we announce material financial information to our investors using our investor relations website, press releases, SEC filings and public conference calls and webcasts. We also use the following social media channels as a means of disclosing information about the company, our products, our planned financial and other announcements and attendance at upcoming investor and industry conferences, and other matters, and for complying with our disclosure obligations under Regulation FD: NVIDIA Corporate Blog (http://blogs.nvidia.com) NVIDIA Technical Blog (http://developer.nvidia.com/blog/) NVIDIA LinkedIn Page (http://www.linkedin.com/company/nvidia) NVIDIA Facebook Page (https://www.facebook.com/nvidia) NVIDIA Instagram Page (https://www.instagram.com/nvidia) NVIDIA X Account (https://x.com/nvidia) NVIDIA Threads Page (https://www.threads.com/@nvidia) In addition, investors and others can view NVIDIA videos on YouTube (https://www.YouTube.com/nvidia). The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these accounts and the blog, in addition to following our press releases, SEC filings and public conference calls and webcasts. This list may be updated from time to time. The information we post through these channels is not a part of this Quarterly Report on Form 10-Q. These channels may be updated from time to time on NVIDIA's investor relations website. 2

Financial Information

Part I. Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) NVIDIA Corporation and Subsidiaries Condensed Consolidated Statements of Income (In millions, except per share data) (Unaudited) Three Months Ended Six Months Ended Jul 27, 2025 Jul 28, 2024 Jul 27, 2025 Jul 28, 2024 Revenue $ 46,743 $ 30,040 $ 90,805 $ 56,084 Cost of revenue 12,890 7,466 30,284 13,105 Gross profit 33,853 22,574 60,521 42,979 Operating expenses Research and development 4,291 3,090 8,280 5,810 Sales, general and administrative 1,122 842 2,163 1,618 Total operating expenses 5,413 3,932 10,443 7,428 Operating income 28,440 18,642 50,078 35,551 Interest income 592 444 1,108 803 Interest expense ( 62 ) ( 61 ) ( 124 ) ( 125 ) Other income (expense), net 2,236 189 2,055 264 Total other income (expense), net 2,766 572 3,039 942 Income before income tax 31,206 19,214 53,117 36,493 Income tax expense 4,784 2,615 7,920 5,013 Net income $ 26,422 $ 16,599 $ 45,197 $ 31,480 Net income per share: Basic $ 1.08 $ 0.68 $ 1.85 $ 1.28 Diluted $ 1.08 $ 0.67 $ 1.84 $ 1.27 Weighted average shares used in per share computation: Basic 24,366 24,578 24,404 24,599 Diluted 24,532 24,848 24,571 24,869 See accompanying Notes to Condensed Consolidated Financial Statements. 3 NVIDIA Corporation and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (In millions) (Unaudited) Three Months Ended Six Months Ended Jul 27, 2025 Jul 28, 2024 Jul 27, 2025 Jul 28, 2024 Net income $ 26,422 $ 16,599 $ 45,197 $ 31,480 Other comprehensive income (loss), net of tax Available-for-sale securities: Net change in unrealized gain (loss) ( 52 ) 150 87 22 Cash flow hedges: Change in unrealized gain 31 23 54 20 Reclassification adjustments for net realized gain (loss) included in net income 5 ( 8 ) 1 ( 13 ) Net change in unrealized gain 36 15 55 7 Other comprehensive income (loss), net of tax ( 16 ) 165 142 29 Total comprehensive income $ 26,406 $ 16,764 $ 45,339 $ 31,509 See accompany