Jessie A Ellis
Aug 29, 2024 09:56
NVIDIA announces record Q2 fiscal 2025 revenue, driven by strong demand in data centers and significant growth in earnings per share.
NVIDIA Corporation (NASDAQ: NVDA) has announced its financial results for the second quarter of fiscal 2025, reporting a record revenue of $30.0 billion. This figure marks a 15% increase from the previous quarter and a staggering 122% rise compared to the same period last year, according to NVIDIA Newsroom.
Revenue and Earnings Growth
The company’s gross margin for Q2 stood at 75.1%, slightly down from the previous quarter’s 78.4% but up from 70.1% a year ago. Operating expenses increased by 12% from Q1 to $3.932 billion, reflecting the company’s continued investment in research and development. Operating income was reported at $18.642 billion, a 10% increase from the previous quarter and up 174% year-over-year.
GAAP earnings per diluted share reached $0.67, up 12% from the previous quarter and 168% from the same period last year. Non-GAAP earnings per diluted share were $0.68, up 11% quarter-over-quarter and 152% year-over-year.
Data Center Performance
NVIDIA’s data center segment was a significant contributor to its record financial performance. The data center revenue hit $26.3 billion, up 16% from Q1 and 154% year-over-year. This surge was driven by robust demand for NVIDIA’s Hopper and Blackwell architectures, which have been instrumental in modernizing global data centers with accelerated computing and generative AI.
“Hopper demand remains strong, and the anticipation for Blackwell is incredible,” said Jensen Huang, founder and CEO of NVIDIA. “NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.”
Shareholder Returns and Stock Split
During the first half of fiscal 2025, NVIDIA returned $15.4 billion to shareholders through share repurchases and cash dividends. The company’s Board of Directors also approved an additional $50.0 billion in share repurchase authorization, effective August 26, 2024, without expiration.
NVIDIA completed a ten-for-one forward stock split on June 7, 2024. Consequently, all share and per-share amounts have been retroactively adjusted to reflect this stock split.
Future Outlook
Looking ahead to Q3 fiscal 2025, NVIDIA expects revenue to be approximately $32.5 billion, plus or minus 2%. The company anticipates GAAP and non-GAAP gross margins to be around 74.4% and 75.0%, respectively, with operating expenses estimated at $4.3 billion on a GAAP basis and $3.0 billion on a non-GAAP basis. The expected tax rate is set at 17%, plus or minus 1%.
Sector Highlights
In addition to data centers, NVIDIA saw growth across various sectors:
- Gaming: Revenue reached $2.9 billion, up 9% from Q1 and 16% year-over-year.
- Professional Visualization: Revenue was $454 million, up 6% from Q1 and 20% year-over-year.
- Automotive: Revenue hit $346 million, up 5% from Q1 and 37% year-over-year.
NVIDIA’s strong performance in these sectors underscores its leadership in AI, gaming, and professional visualization, further solidifying its position in the technology market.
Conference Call and Webcast
NVIDIA will conduct a conference call with analysts and investors to discuss its Q2 fiscal 2025 financial results and future prospects today at 2 p.m. Pacific Time (5 p.m. Eastern Time). A live webcast of the conference call will be accessible at NVIDIA’s investor relations website.
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