NV

NVIDIA Corporation stock research

Jan 26, 2025

FY2025 Q4

NVIDIA (NVDA) Gross Margin — Quarter Ended Jan 26, 2025

Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter a year earlier, while gross margin weakened. The filing notes that operating cash flow grew due to higher revenue.

Gross margin takeaway

Quarter ended Jan 26, 2025 · FY2025 Q4

Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter a year earlier, while gross margin weakened. The filing notes that operating cash flow grew due to higher revenue.

  • The increase in cost of revenue was proportionally larger than the increase in revenue, resulting in a lower gross margin compared to both the prior quarter and the year-ago quarter.
  • Gross margin was lower than the immediately preceding quarter and also lower than the same quarter one year earlier, indicating a weakening trend.

Gross margin snapshot

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

Gross margin

73.0%

Gross profit

$28.7B

Revenue

$39.3B

Cost of revenue

$10.6B

Quarter-over-quarter change

-1.5 pts

Year-over-year change

-2.9 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Apr 28, 2024$26.0B$20.4B$5.6B78.4%
Jul 28, 2024$30.0B$22.6B$7.5B75.1%
Oct 27, 2024$35.1B$26.2B$8.9B74.6%
Jan 26, 2025$39.3B$28.7B$10.6B73.0%

Quarterly comparisons

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

Previous-quarter change

Oct 27, 2024

-1.5 pts

Year-over-year change

Jan 28, 2024

-2.9 pts

What the margin says

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

The increase in cost of revenue was proportionally larger than the increase in revenue, resulting in a lower gross margin compared to both the prior quarter and the year-ago quarter.

Gross margin was lower than the immediately preceding quarter and also lower than the same quarter one year earlier, indicating a weakening trend.

Monitor the trend of cost of revenue relative to revenue, as its faster growth has compressed gross margin.