NV

NVIDIA Corporation stock research

Jul 28, 2024

FY2025 Q2

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

Revenue and gross profit increased from the prior quarter and the same quarter last year. Gross margin decreased slightly from the prior quarter but improved compared to the same quarter last year.

Gross margin takeaway

Quarter ended Jul 28, 2024 · FY2025 Q2

Revenue and gross profit increased from the prior quarter and the same quarter last year. Gross margin decreased slightly from the prior quarter but improved compared to the same quarter last year.

  • The sequential decline in gross margin reflects cost of revenue growing more quickly than revenue, while the year-over-year improvement stems from revenue growing more than cost.
  • Compared to the prior quarter, revenue and gross profit rose, but gross margin weakened. Compared to the same quarter last year, all metrics improved, with gross margin strengthening.

Gross margin snapshot

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

Gross margin

75.1%

Gross profit

$22.6B

Revenue

$30.0B

Cost of revenue

$7.5B

Quarter-over-quarter change

-3.2 pts

Year-over-year change

+5.1 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Jul 28, 2024$30.0B$22.6B$7.5B75.1%

Quarterly comparisons

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

Previous-quarter change

Apr 28, 2024

-3.2 pts

Year-over-year change

Jul 30, 2023

+5.1 pts

What the margin says

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

The sequential decline in gross margin reflects cost of revenue growing more quickly than revenue, while the year-over-year improvement stems from revenue growing more than cost.

Compared to the prior quarter, revenue and gross profit rose, but gross margin weakened. Compared to the same quarter last year, all metrics improved, with gross margin strengthening.

Monitor the relationship between revenue growth and cost of revenue growth for gross margin trends.