NVIDIA Reports 114% Revenue Growth to $130.5 Billion in Fiscal Year 2025

NVIDIA Corporation reported significant financial growth for the fiscal year 2025, with total revenue reaching $130.5 billion, a 114% increase from the previous year’s $60.9 billion. The company’s net income also saw a substantial rise, climbing 145% to $72.9 billion, compared to $29.8 billion in fiscal year 2024. This growth was primarily driven by a surge in demand for its data center products, particularly those utilizing the Hopper architecture, which supports large language models and generative AI applications. The gross margin improved to 75.0%, up from 72.7% in the prior year, reflecting a favorable shift in the revenue mix towards higher-margin data center solutions.

In terms of operational developments, NVIDIA's Compute & Networking segment experienced a remarkable 145% revenue increase, totaling $116.2 billion, while the Graphics segment grew by 6% to $14.3 billion. The company began shipping production systems based on its new Blackwell architecture in the fourth quarter of fiscal year 2025, further enhancing its product offerings. The automotive segment also performed well, with a 55% increase in revenue, driven by sales of self-driving platforms. Overall, NVIDIA's employee headcount reached approximately 36,000, with a significant portion engaged in research and development.

Strategically, NVIDIA has focused on expanding its product portfolio and enhancing its technology leadership in AI and accelerated computing. The company has invested heavily in research and development, totaling over $58.2 billion since its inception. In fiscal year 2025, operating expenses rose by 45% to $16.4 billion, largely due to increased compensation and benefits expenses associated with employee growth and higher engineering development costs. The company also repurchased 310 million shares for $34 billion during the fiscal year, reflecting its commitment to returning value to shareholders.

NVIDIA's international sales accounted for 53% of total revenue, with the company navigating complex global trade dynamics, particularly concerning export controls imposed by the U.S. government. These restrictions have impacted the company's ability to serve customers in China and other regions, leading to a cautious approach in managing its supply chain and customer relationships. The company has also expanded its data center product portfolio to include solutions that do not require export licenses, aiming to mitigate the impact of these regulations.

Looking ahead, NVIDIA remains optimistic about its growth trajectory, driven by the increasing demand for AI and accelerated computing solutions across various industries. However, the company acknowledges the potential risks associated with geopolitical tensions, regulatory changes, and market competition. NVIDIA's management has indicated that it will continue to adapt its strategies to meet evolving market conditions while maintaining a focus on innovation and operational efficiency.