NVIDIA Corporation stock research
FY2026 Q3
NVIDIA (NVDA) Gross Margin — Quarter Ended Oct 26, 2025
Revenue, gross profit, and cost of revenue all increased compared to the immediately preceding quarter and the same quarter one year earlier. Gross margin improved relative to the prior quarter but weakened compared to the same quarter last year, as cost of revenue grew at a different rate than revenue.
Gross margin takeaway
Quarter ended Oct 26, 2025 · FY2026 Q3
Revenue, gross profit, and cost of revenue all increased compared to the immediately preceding quarter and the same quarter one year earlier. Gross margin improved relative to the prior quarter but weakened compared to the same quarter last year, as cost of revenue grew at a different rate than revenue.
- The improvement in gross margin from the prior quarter was driven by revenue growth outpacing cost of revenue growth. However, compared to a year ago, cost of revenue increased more relative to revenue, leading to a lower gross margin.
- Sequentially, gross margin strengthened from the prior quarter to the current quarter. Year-over-year, gross margin weakened compared to the same quarter last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.4%
Gross profit
$41.8B
Revenue
$57.0B
Cost of revenue
$15.2B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
-1.1 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 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% |
| Oct 26, 2025 | $57.0B | $41.8B | $15.2B | 73.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 27, 2025
+1.0 pts
Year-over-year change
Oct 27, 2024
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was driven by revenue growth outpacing cost of revenue growth. However, compared to a year ago, cost of revenue increased more relative to revenue, leading to a lower gross margin.
Sequentially, gross margin strengthened from the prior quarter to the current quarter. Year-over-year, gross margin weakened compared to the same quarter last year.
Monitor the trend in cost of revenue relative to revenue, as changes in this relationship directly impact gross margin.