NVIDIA's Q3 Revenue Soars 62.5% to $57B, Net Income Up 65%

TL;DR

**NVIDIA is absolutely crushing it, cementing its AI dominance with massive revenue and profit growth, making it a must-own for any tech portfolio.**

AI Summary

NVIDIA Corporation reported a significant surge in financial performance for the quarter ended October 26, 2025. Revenue increased by 62.5% to $57.01 billion from $35.08 billion in the prior year's comparable quarter. Net income also saw a substantial rise, reaching $31.91 billion, up 65.3% from $19.31 billion in the same period last year. For the nine months ended October 26, 2025, revenue grew to $147.81 billion from $91.17 billion, and net income increased to $77.11 billion from $50.79 billion. The company's gross profit for the quarter was $41.85 billion, a 60.0% increase year-over-year. Operating expenses rose to $5.84 billion from $4.29 billion, driven by increased research and development spending of $4.71 billion. Total assets expanded to $161.15 billion as of October 26, 2025, from $111.60 billion at January 26, 2025, with inventories nearly doubling to $19.78 billion from $10.08 billion. The effective tax rate increased to 15.9% for the quarter from 13.5% due to a lower percentage of tax benefits from stock-based compensation and U.S. federal research tax credit relative to the increase in income before income tax.

Why It Matters

NVIDIA's explosive growth, particularly the 62.5% revenue increase and 65.3% net income jump, signals robust demand for its AI-driven processors, solidifying its market leadership against competitors like AMD and Intel. This performance indicates strong investor confidence, potentially driving further stock appreciation and attracting more capital into the semiconductor sector. For employees, this growth could translate into increased hiring, R&D investment, and job security. Customers benefit from continued innovation and advanced product offerings, while the broader market sees a bellwether for the health of the AI and data center industries, influencing supply chains and technological advancements globally.

Risk Assessment

Risk Level: low — NVIDIA's risk level is low given its exceptional financial performance, including a 62.5% increase in revenue and a 65.3% increase in net income for the quarter ended October 26, 2025. The company's strong cash flow from operating activities, which reached $66.53 billion for the nine months ended October 26, 2025, further mitigates financial risk, demonstrating robust operational health and liquidity.

Analyst Insight

Investors should consider increasing their exposure to NVIDIA, given its strong financial performance and dominant position in the high-growth AI and data center markets. The significant revenue and net income growth, coupled with a low risk profile, suggests continued upside potential. Monitor inventory levels and R&D spending for future growth indicators.

Financial Highlights

debt To Equity

Not specified

revenue

$57.01B

operating Margin

63.2%

total Assets

$161.15B

total Debt

$8.47B

net Income

$31.91B

eps

$1.30

gross Margin

73.4%

cash Position

$11.49B

revenue Growth

+62.5%

Revenue Breakdown

Key Numbers

• $57.01B — Revenue (Increased 62.5% for the three months ended Oct 26, 2025, compared to Oct 27, 2024.)
• $31.91B — Net Income (Increased 65.3% for the three months ended Oct 26, 2025, compared to Oct 27, 2024.)
• $147.81B — Revenue (Increased for the nine months ended Oct 26, 2025, from $91.17 billion in the prior year.)
• $77.11B — Net Income (Increased for the nine months ended Oct 26, 2025, from $50.79 billion in the prior year.)
• $41.85B — Gross Profit (Increased 60.0% for the three months ended Oct 26, 2025.)
• $19.78B — Inventories (Nearly doubled from $10.08 billion at January 26, 2025, to October 26, 2025.)
• 15.9% — Income Tax Expense Rate (Increased from 13.5% for the three months ended Oct 27, 2024, to Oct 26, 2025.)
• $1.30 — Diluted Net Income Per Share (Increased from $0.78 for the three months ended Oct 27, 2024, to Oct 26, 2025.)
• $66.53B — Net Cash Provided by Operating Activities (For the nine months ended Oct 26, 2025, up from $47.46 billion in the prior year.)
• $161.15B — Total Assets (As of Oct 26, 2025, up from $111.60 billion at Jan 26, 2025.)

Key Players & Entities

• NVIDIA Corporation (company) — registrant
• U.S. Treasury (regulator) — issuer of debt securities
• Internal Revenue Service (regulator) — tax authority conducting examination
• FASB (regulator) — issued new accounting standards
• SEC (regulator) — Securities and Exchange Commission
• One Big Beautiful Bill Act (OBBBA) (regulator) — new U.S. federal income tax law
• $57,006 million (dollar_amount) — revenue for three months ended Oct 26, 2025
• $31,910 million (dollar_amount) — net income for three months ended Oct 26, 2025
• $161,148 million (dollar_amount) — total assets as of Oct 26, 2025
• $13.1 billion (dollar_amount) — aggregate unearned stock-based compensation expense as of Oct 26, 2025

FAQ

Risk Factors

• Intense Competition [high — market]: The market for GPUs and AI accelerators is highly competitive, with significant R&D investments from major players like Intel, AMD, and cloud providers developing their own custom silicon. Failure to innovate or maintain a competitive edge could impact market share and profitability.
• Supply Chain Disruptions [high — operational]: NVIDIA relies on a complex global supply chain for manufacturing its products. Any disruptions, such as those related to geopolitical events, natural disasters, or component shortages, could impact production volumes and the ability to meet demand, as evidenced by the near doubling of inventories to $19.78 billion.
• Export Controls and Geopolitical Tensions [medium — regulatory]: The company's global operations are subject to export control regulations, particularly concerning sales to certain countries. Changes in these regulations or escalating geopolitical tensions could restrict market access and revenue opportunities.
• Fluctuations in Demand [medium — financial]: Demand for NVIDIA's products, especially in the AI sector, can be cyclical and subject to rapid shifts. A slowdown in AI investment or a transition to new technologies could lead to revenue volatility.
• Research and Development Intensity [medium — operational]: Maintaining leadership requires substantial and continuous investment in R&D, which increased to $4.71 billion for the quarter. Failure to achieve desired technological advancements or manage R&D costs effectively could be detrimental.
• Effective Tax Rate Changes [low — financial]: The effective tax rate increased to 15.9% from 13.5% due to a lower percentage of tax benefits from stock-based compensation and R&D credits relative to income growth. Future changes in tax laws or the mix of income could further impact profitability.

Industry Context

NVIDIA operates in the highly dynamic semiconductor industry, particularly dominant in GPUs for AI, data centers, and gaming. The company faces intense competition from established players and emerging custom silicon solutions from cloud providers. The current industry trend is heavily influenced by the exponential growth in AI and accelerated computing, driving unprecedented demand for high-performance processing power.

Regulatory Implications

NVIDIA is subject to various regulations, including export controls that could impact its ability to sell products in certain international markets, particularly given geopolitical sensitivities. Changes in tax laws or accounting standards could also affect its financial reporting and profitability.

What Investors Should Do

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Key Dates

• 2025-10-26: End of Third Fiscal Quarter — Reported record revenue of $57.01 billion and net income of $31.91 billion, showcasing exceptional growth driven by AI demand.
• 2025-10-27: Prior Year Q3 End Date — Provides the comparative baseline for the significant year-over-year growth reported in the current quarter.
• 2025-01-26: End of Fourth Fiscal Quarter (Previous Year) — Represents the prior fiscal year-end balance sheet, against which the current asset growth, particularly in inventories, is measured.
• 2025-10-26: Balance Sheet Date — Total assets reached $161.15 billion, reflecting significant expansion, with inventories nearly doubling.
• 2025-10-26: Nine Months Ended — Cumulative performance shows robust growth with revenue at $147.81 billion and net income at $77.11 billion.

Glossary

Operating income

Profitability from core business operations before accounting for interest and taxes. (Increased significantly to $36.01 billion for the quarter, indicating strong operational efficiency and demand.)

Gross profit

Revenue minus the cost of goods sold. (Grew 60.0% to $41.85 billion, demonstrating NVIDIA's pricing power and efficient cost management in its high-demand products.)

Inventories

Raw materials, work-in-progress, and finished goods held by the company. (Nearly doubled to $19.78 billion, suggesting anticipation of continued high demand and potential supply chain management strategies.)

Diluted Net Income Per Share

Net income divided by the weighted-average number of diluted common shares outstanding. (Increased to $1.30 from $0.78, reflecting strong earnings growth on a per-share basis.)

Effective tax rate

The company's total tax expense divided by its income before income tax. (Increased to 15.9% due to changes in tax benefits, impacting the net income figure.)

Marketable securities

Short-term investments that can be easily bought or sold. (Increased to $49.12 billion, indicating a strong cash position and strategic deployment of capital.)

Accounts receivable, net

Money owed to the company by its customers for goods or services delivered. (Increased to $33.39 billion, reflecting the substantial growth in sales.)

Net Cash Provided by Operating Activities

The net amount of cash generated from the normal day-to-day business operations of a company. (Reached $66.53 billion for the nine months, a significant increase from the prior year, highlighting strong cash generation capabilities.)

Year-Over-Year Comparison

NVIDIA has demonstrated exceptional year-over-year growth, with revenue soaring by 62.5% to $57.01 billion for the quarter and net income rising by 65.3% to $31.91 billion. This performance is underpinned by a substantial increase in gross profit (up 60.0%) and operating income. Total assets have expanded significantly to $161.15 billion, with a notable near-doubling of inventories to $19.78 billion, indicating robust demand anticipation. The effective tax rate has also seen an increase to 15.9%.

Key Financial Figures

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

Filing Documents

• nvda-20251026.htm (10-Q) — 1349KB
• nvda2026q3ex311.htm (EX-31.1) — 8KB
• nvda2026q3ex312.htm (EX-31.2) — 8KB
• nvda2026q3ex321.htm (EX-32.1) — 5KB
• nvda2026q3ex322.htm (EX-32.2) — 5KB
• nvda-20251026_g1.jpg (GRAPHIC) — 7KB
• 0001045810-25-000230.txt ( ) — 7838KB
• nvda-20251026.xsd (EX-101.SCH) — 55KB
• nvda-20251026_cal.xml (EX-101.CAL) — 97KB
• nvda-20251026_def.xml (EX-101.DEF) — 238KB
• nvda-20251026_lab.xml (EX-101.LAB) — 668KB
• nvda-20251026_pre.xml (EX-101.PRE) — 471KB
• nvda-20251026_htm.xml (XML) — 1188KB

: Financial Information

Part I : Financial Information Item 1.

Financial Statements (Unaudited)

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 25

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk 32

Quantitative and Qualitative Disclosures About Market Risk 32 Item 4.

Controls and Procedures 33

Controls and Procedures 33

: Other Information

Part II : Other Information Item 1. Legal Proceedings 33 Item 1A. Risk Factors 33 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 5. Other Information 42 Item 6. Exhibits 43 Signature 44 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) NVIDIA Investor Relations Page (https://investor.nvidia.com) 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 Nine Months Ended Oct 26, 2025 Oct 27, 2024 Oct 26, 2025 Oct 27, 2024 Revenue $ 57,006 $ 35,082 $ 147,811 $ 91,166 Cost of revenue 15,157 8,926 45,441 22,031 Gross profit 41,849 26,156 102,370 69,135 Operating expenses Research and development 4,705 3,390 12,985 9,200 Sales, general and administrative 1,134 897 3,297 2,516 Total operating expenses 5,839 4,287 16,282 11,716 Operating income 36,010 21,869 86,088 57,419 Interest income 624 472 1,732 1,275 Interest expense ( 61 ) ( 61 ) ( 186 ) ( 186 ) Other income, net 1,363 36 3,418 301 Total other income, net 1,926 447 4,964 1,390 Income before income tax 37,936 22,316 91,052 58,809 Income tax expense 6,026 3,007 13,945 8,020 Net income $ 31,910 $ 19,309 $ 77,107 $ 50,789 Net income per share: Basic $ 1.31 $ 0.79 $ 3.16 $ 2.07 Diluted $ 1.30 $ 0.78 $ 3.14 $ 2.04 Weighted average shares used in per share computation: Basic 24,327 24,533 24,378 24,577 Diluted 24,483 24,774 24,542 24,837 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 Nine Months Ended Oct 26, 2025 Oct 27, 2024 Oct 26, 2025 Oct 27, 2024 Net income $ 31,910 $ 19,309 $ 77,107 $ 50,789 Other comprehensive income, net of tax Available-for-sale securities: Net change in unrealized gain 184 49 270 71 Cash flow hedges: Change in unrealized gain (loss) ( 28 ) — 27 20 Reclassification adjustments for net realized gain (loss) included in net income 13 ( 2 ) 14 ( 15 ) Net change in unrealized gain (loss) ( 15 ) ( 2 ) 41 5 Other comprehensive income, net of tax 169 47 311 76 Total comprehensive income $ 32,079 $ 19,356 $ 77,418 $ 50,865 See accompanying Notes to C