NVIDIA Corporation stock research
FY2025 Q3
NVIDIA (NVDA) Gross Margin — Quarter Ended Oct 27, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved relative to the same quarter a year ago.
Gross margin takeaway
Quarter ended Oct 27, 2024 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved relative to the same quarter a year ago.
- The sequential decline in gross margin was driven by cost of revenue growing at a faster pace than revenue, while the year-over-year improvement reflected a more favorable balance between revenue and cost growth.
- Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was higher. Revenue, gross profit, and cost of revenue all increased in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.6%
Gross profit
$26.2B
Revenue
$35.1B
Cost of revenue
$8.9B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+0.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 28, 2024 | $22.1B | $16.8B | $5.3B | 76.0% |
| Apr 28, 2024 | $26.0B | $20.4B | $5.6B | 78.4% |
| Jul 28, 2024 | $30.0B | $22.6B | $7.5B | 75.1% |
| Oct 27, 2024 | $35.1B | $26.2B | $8.9B | 74.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 28, 2024
-0.6 pts
Year-over-year change
Oct 29, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in gross margin was driven by cost of revenue growing at a faster pace than revenue, while the year-over-year improvement reflected a more favorable balance between revenue and cost growth.
Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was higher. Revenue, gross profit, and cost of revenue all increased in both comparisons.
Monitor the impact of advanced payments on supply agreements on future cost of revenue, as noted in the filing's liquidity discussion.