NVIDIA Corporation stock research
FY2026 Q2
NVIDIA (NVDA) Gross Margin — Quarter Ended Jul 27, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but was lower than the same quarter last year, reflecting a mixed trend.
Gross margin takeaway
Quarter ended Jul 27, 2025 · FY2026 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but was lower than the same quarter last year, reflecting a mixed trend.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew while cost of revenue decreased sequentially, leading to a higher gross profit and improved gross margin. Compared to a year ago, cost of revenue increased more relative to revenue, resulting in a lower gross margin.
- Compared to the immediately preceding quarter, gross margin improved as revenue increased and cost of revenue decreased. Compared to the same quarter one year earlier, gross margin weakened as cost of revenue grew faster than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.4%
Gross profit
$33.9B
Revenue
$46.7B
Cost of revenue
$12.9B
Quarter-over-quarter change
+11.9 pts
Year-over-year change
-2.7 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 |
|---|---|---|---|---|
| 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% |
| Jul 27, 2025 | $46.7B | $33.9B | $12.9B | 72.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 27, 2025
+11.9 pts
Year-over-year change
Jul 28, 2024
-2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew while cost of revenue decreased sequentially, leading to a higher gross profit and improved gross margin. Compared to a year ago, cost of revenue increased more relative to revenue, resulting in a lower gross margin.
Compared to the immediately preceding quarter, gross margin improved as revenue increased and cost of revenue decreased. Compared to the same quarter one year earlier, gross margin weakened as cost of revenue grew faster than revenue.
Monitor the trend in cost of revenue relative to revenue, as its sequential decline contributed to margin improvement but its year-over-year increase outpaced revenue growth.