NV

NVIDIA Corporation stock research

Apr 28, 2024

FY2025 Q1

NVIDIA (NVDA) Gross Margin — Quarter Ended Apr 28, 2024

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace, leading to an improved gross margin. The gross margin strengthened sequentially and year-over-year, reflecting a higher proportion of revenue retained as gross profit.

Gross margin takeaway

Quarter ended Apr 28, 2024 · FY2025 Q1

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace, leading to an improved gross margin. The gross margin strengthened sequentially and year-over-year, reflecting a higher proportion of revenue retained as gross profit.

  • The strongest observable margin driver is the faster growth of gross profit relative to revenue, combined with a slower increase in cost of revenue, which directly expanded the gross margin.
  • Compared to the prior quarter, gross margin was higher; compared to the same quarter last year, gross margin was also higher. Revenue, gross profit, and cost of revenue all increased from both comparison periods, with gross profit rising more than revenue and cost of revenue rising less than revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

78.4%

Gross profit

$20.4B

Revenue

$26.0B

Cost of revenue

$5.6B

Quarter-over-quarter change

+2.4 pts

Year-over-year change

+13.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jul 30, 2023$13.5B$9.5B$4.0B70.1%
Oct 29, 2023$18.1B$13.4B$4.7B74.0%
Jan 28, 2024$22.1B$16.8B$5.3B76.0%
Apr 28, 2024$26.0B$20.4B$5.6B78.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jan 28, 2024

+2.4 pts

Year-over-year change

Apr 30, 2023

+13.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the faster growth of gross profit relative to revenue, combined with a slower increase in cost of revenue, which directly expanded the gross margin.

Compared to the prior quarter, gross margin was higher; compared to the same quarter last year, gross margin was also higher. Revenue, gross profit, and cost of revenue all increased from both comparison periods, with gross profit rising more than revenue and cost of revenue rising less than revenue.

Monitor the trend in cost of revenue relative to revenue, as any change in this relationship could affect future gross margin.