Sales of $35.08 billion, net profit of $19.3 billion
Year-on-year increase of 94% and 109% respectively
Blackwell Q4 production and shipments... "Expectations surprisingly high"
NVIDIA, the 'Artificial Intelligence (AI) Superstar,' announced third-quarter (August to October) results that exceeded expectations. The latest AI chip, Blackwell, began production and shipment this quarter, and not only Blackwell but also the current chip, Hopper, is struggling to meet demand. However, despite the solid earnings report, NVIDIA's stock price slightly declined in after-hours trading as it failed to meet the market's heightened expectations.
On the 20th (local time), after market close, NVIDIA reported third-quarter revenue for fiscal year 2025 of $35.08 billion and net income of $19.3 billion (earnings per share (EPS) of $0.78 and adjusted EPS of $0.81). Compared to a year ago, revenue surged 94%, and net income increased by 109%.
This performance surpassed market expectations. According to market research firm LSEG, NVIDIA was forecasted to record revenue of $33.16 billion and adjusted EPS of $0.75.
Revenue nearly doubled year-over-year due to strong AI demand. The data center segment, which generates revenue from AI chips, achieved $30.8 billion in sales, accounting for about 90% of NVIDIA's total revenue. This significantly exceeded the $28.82 billion expected by market research firm StreetAccount. The gaming segment recorded $3.28 billion in revenue, the automotive segment $449 million, and the professional visualization segment $486 million.
NVIDIA's latest AI chip, Blackwell, which has attracted attention, began shipping this quarter. It has started to be supplied to Microsoft (MS), Oracle, OpenAI, and others.
Colette Kress, NVIDIA's Chief Financial Officer (CFO), stated, "Blackwell chips began shipping this quarter and will increase in volume next year," adding, "Sales of the current AI chip, H200, also increased significantly this quarter."
Jensen Huang, NVIDIA's Chief Executive Officer (CEO), said, "The AI era is in full swing, accelerating the global transition to NVIDIA computing," and added, "The demand for Hopper and the expectations for Blackwell, which has entered full production, are astonishing."
NVIDIA's revenue forecast for the fourth quarter also exceeded market expectations. NVIDIA projected fourth-quarter revenue of $37.5 billion, expecting a fluctuation of around 2%. This surpasses market expectations. Previously, LSEG forecasted NVIDIA's fourth-quarter revenue at $37.08 billion. However, the revenue growth rate for the fourth quarter is expected to be 70% year-over-year, significantly down from 265% a year ago. NVIDIA's revenue growth rate has been steadily slowing, with 265% in Q4 last year, 262% in Q1 this year, 122% in Q2, and 94% in Q3.
Following the earnings announcement, some disappointing selling pressure emerged, and as of 4:59 PM Eastern Time, NVIDIA's stock price was down 0.62% in after-hours trading.
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