NVIDIA Corporation stock research
FY2026 Q1
NVIDIA (NVDA) Gross Margin — Quarter Ended Apr 27, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit decreased from the prior quarter but increased from a year ago. Cost of revenue rose more sharply than revenue, leading to a lower gross margin relative to both comparison periods.
Gross margin takeaway
Quarter ended Apr 27, 2025 · FY2026 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit decreased from the prior quarter but increased from a year ago. Cost of revenue rose more sharply than revenue, leading to a lower gross margin relative to both comparison periods.
- The gross margin weakened because cost of revenue grew faster than revenue, reducing the proportion of revenue retained as gross profit. Revenue increased but gross profit declined from the prior quarter, confirming the disproportionate cost increase.
- Compared to the immediately preceding quarter, revenue was higher while gross profit was lower, cost of revenue was higher, and gross margin weakened. Relative to the same quarter one year earlier, revenue and gross profit were both higher, but cost of revenue was substantially higher and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.5%
Gross profit
$26.7B
Revenue
$44.1B
Cost of revenue
$17.4B
Quarter-over-quarter change
-12.5 pts
Year-over-year change
-17.8 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 |
|---|---|---|---|---|
| Jul 28, 2024 | $30.0B | $22.6B | $7.5B | 75.1% |
| Oct 27, 2024 | $35.1B | $26.2B | $8.9B | 74.6% |
| Jan 26, 2025 | $39.3B | $28.7B | $10.6B | 73.0% |
| Apr 27, 2025 | $44.1B | $26.7B | $17.4B | 60.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 26, 2025
-12.5 pts
Year-over-year change
Apr 28, 2024
-17.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened because cost of revenue grew faster than revenue, reducing the proportion of revenue retained as gross profit. Revenue increased but gross profit declined from the prior quarter, confirming the disproportionate cost increase.
Compared to the immediately preceding quarter, revenue was higher while gross profit was lower, cost of revenue was higher, and gross margin weakened. Relative to the same quarter one year earlier, revenue and gross profit were both higher, but cost of revenue was substantially higher and gross margin weakened.
Monitor the trend in cost of revenue relative to revenue, as its faster growth is the primary observable factor compressing gross margin.