Nvidia revenue analysis
about 2 months ago
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Nvidia (NVDA) Revenue & Profitability Analysis (Fiscal years ending January)
| Metric ($B / %) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total Revenue | 26.91 | 26.97 | 60.92 | 130.50 | 215.94 |
| YoY Growth | — | 0.2% | 125.9% | 114.2% | 65.5% |
| Gross Margin | 64.9% | 56.9% | 72.7% | 75.0% | 71.1% |
| Operating Margin | 37.3% | 15.7% | 54.1% | 62.4% | 60.4% |
| Net Margin | 36.2% | 16.2% | 48.8% | 55.8% | 55.6% |
| Net Income | 9.75 | 4.37 | 29.76 | 72.88 | 120.07 |
Key takeaways
- Revenue trajectory: From $26.91B in FY22 to $215.94B in FY26 — roughly an 8x increase in four years, driven by data-center / AI accelerator demand.
- Inflection in FY24: Revenue more than doubled (+125.9%) as generative-AI workloads pulled forward demand for Hopper-class GPUs.
- FY26 moderation: Growth decelerated to +65.5% YoY — still exceptional in absolute terms, but the law of large numbers is kicking in against the FY25 base.
- Margin expansion: Gross margins compressed sharply in FY23 (56.9%) due to inventory/write-down charges in the gaming segment, then surged to a peak of 75% in FY25 as Data Center (high-ASP H100/H200) dominated the mix. FY26 settled at 71.1%.
- Operating leverage: Operating margin jumped from 15.7% in FY23 to 62.4% in FY25. Net income climbed from $4.37B (FY23) to $120.07B (FY26) — a 27x increase in three years.
Watch-points going forward
- Whether gross margins stabilize near the low-70s or re-accelerate if Blackwell ramps at full mix.
- Sustainability of 55%+ net margins — currently far above semiconductor peer norms.
- Quarterly cadence (see chart) for any demand digestion phase after the FY26 print.
See charts above for annual revenue trend and quarterly revenue vs. net income.
about 2 months ago