Nvidia (NVDA) Q3 2025 Earnings Report

Nvidia reported third-quarter earnings that beat sales and profit expectations, while providing better-than-expected guidance for the current quarter. The results show that Nvidia continues to grow rapidly as demand for its powerful AI chips remains high.

Shares fell 2% in extended trading.

Here are the results.

• Income: $35.08 billion versus $33.16 billion expected by LSEG
• Earnings per share: 81 cents adjusted versus 75 cents adjusted expected by LSEG

Nvidia said it expects about $37.5 billion, plus or minus 2%, in sales for the current quarter, compared with $37.08 billion expected by analysts surveyed by LSEG.

Q4 guidance implies year-over-year growth of around 70% over the previous year, a slowdown from the 265% annual growth during the same period last year.

Revenue continues to rise at Nvidia, up 94% on an annual basis in the quarter ended October 27. This is still a consecutive slowdown from the previous three quarters, when sales increased 122%, 262% and 265%, respectively.

Nvidia has been the biggest beneficiary of the current artificial intelligence boom. Shares have nearly tripled so far in 2024, making it the most valuable publicly traded company.

This is due to Nvidia’s data center business, which records sales of AI processors and related parts, and which now accounts for the vast majority of Nvidia’s revenue. Nvidia reported $30.8 billion in its data center division, up 112% from last year, while analysts surveyed by StreetAccount expected $28.82 billion in revenue.

Not all of Nvidia’s data center sales are chips. About $3.1 billion was due to network component sales, the company said.

Net income for the quarter rose to $19.3 billion, or 78 cents per share, compared with $9.24 billion, or 67 cents per share a year earlier. Nvidia’s gross margin rose to 73.5%, slightly above analyst estimates, and the company says the increase is because it is selling more data center chips.

Many of Nvidia’s end customers, such as Microsoft, Oracle, and OpenAI, have started receiving the company’s next-generation AI chip called Blackwell. Nvidia Chief Financial Officer Colette Kress said on a call with analysts that 13,000 samples of the chip had been shipped to customers. Nvidia CEO Jensen Huang said in a statement that Blackwell was in “full production.”

“”Every customer strives to be first to market. Blackwell is now in the hands of all of our major partners, and they are working to modernize their data centers,” Kress said.

Shipments of Nvidia’s Blackwell chips will increase next year, Kress said. The company also said sales of its current generation AI chip, the H200, “increased significantly during the quarter.”

“The Hopper and Blackwell systems have some supply constraints, and demand for Blackwell is expected to exceed supply for several quarters in fiscal 2026,” Kress said.

Nvidia’s gaming business reported revenue of $3.28 billion, compared to $3.03 billion expected by StreetAccount. Nvidia’s graphics processing units were first developed for 3D games before the technology was repurposed for artificial intelligence. Nvidia said the increase in sales was driven by increased demand for GPUs for PCs and laptops, as well as increased revenue from chips for game consoles. Nvidia makes the chip at the heart of Nintendo’s Switch.

The company’s automotive and professional visualization businesses are much smaller than its data center and gaming segments. Automotive sales were $449 million, up 72% on a year-over-year basis, which Nvidia said was due to chips for self-driving cars. The segment also includes chips sold by Nvidia for robots. The professional visualization segment accounted for $486 million in sales, up 17% year over year.