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NVIDIA Corp

NVDA
10-QFiled:November 19, 2025

Summary

Full summary

The Print

positive

NVIDIA reported third-quarter fiscal 2026 revenue of $57.0B, up 62% YoY, with net income of $31.9B and diluted EPS of $1.30.

Revenue increased 62% YoY and 22% sequentially, which management attributes to data center compute and networking platforms for accelerated computing and AI solutions, with Blackwell Ultra now the leading architecture across all customer categories. Gross margin decreased 1.2 points YoY as the business model transitioned from Hopper HGX systems to Blackwell full-scale datacenter solutions, and increased 1.0 point sequentially as Blackwell ramped with an improved mix and cost structure.

  • Revenue of $57.0B rose 62% YoY and 22% sequentially, with Data Center revenue of $51.2B up 66% YoY and 25% sequentially.
  • Net income of $31.9B and diluted EPS of $1.30 increased 65% and 67% YoY, respectively.
  • Gross margin of 73.4% decreased 1.2 points YoY but increased 1.0 point sequentially.
  • Operating cash flow for the first nine months was $66.5B, up from $47.5B a year earlier.

Results That Matter

  • Revenue
    Current period
    $57.0B
    Prior period
    $35.1B
    Change
    +62.5%
    Management attributes the increase to data center compute and networking platforms for accelerated computing and AI solutions.
  • Gross profit
    Current period
    $41.8B
    Prior period
    $26.2B
    Change
    +60.0%
    Gross margin decreased 1.2 points YoY as the business model transitioned from Hopper HGX systems to Blackwell full-scale datacenter solutions.
  • Operating income
    Current period
    $36.0B
    Prior period
    $21.9B
    Change
    +64.7%
    Operating income increased 65% YoY per the MD&A summary table.
  • Net income
    Current period
    $31.9B
    Prior period
    $19.3B
    Change
    +65.3%
    Net income increased 65% YoY per the MD&A summary table.
  • Net income per diluted share
    Current period
    $1.3
    Prior period
    $0.78
    Change
    —
    Diluted EPS increased 67% YoY per the MD&A summary table.

Earnings Quality & Cash Conversion

Reported operating income of $36,010M includes stock-based compensation expense of $1,655M and acquisition-related and other costs of $87M, which are excluded from segment operating income of $38,267M. Other income, net of $1,363M includes unrealized gains in publicly-held and non-marketable equity securities. The first nine months of fiscal year 2026 include a $4.5B charge associated with H20 excess inventory and purchase obligations recorded in the first quarter.

Red flag

Accounts receivable increased to $33,391M from $23,065M at January 26, 2025, while nine-month revenue grew 62% YoY.

Red flag

Inventories increased to $19,784M from $10,080M at January 26, 2025, with inventory provisions of $3.6B for the first nine months of fiscal year 2026.

Red flag

Four direct customers accounted for 22%, 17%, 14% and 12% of the accounts receivable balance as of October 26, 2025.

Value Drivers & Capital Allocation

“Cash used in financing activities increased in the first nine months of fiscal year 2026 compared to the first nine months of fiscal year 2025, mainly due to higher share repurchases.”

— Filing statement

“In November 2025, we entered into an agreement, subject to certain closing conditions, to invest up to $10 billion in Anthropic.”

— Filing statement

Return on equity was 26.8% (prior 29.3%) (period net income / period-end equity, not annualized); return on assets 19.8% (period net income / period-end assets, not annualized).

Forward Signals

No financial guidance is provided in this 10-Q; the filing states that the results for the interim periods presented are not necessarily indicative of the results expected for any future period.

Known trends

  • The availability of data centers, energy, and capital to support the buildout of NVIDIA AI infrastructure by our customers is crucial, and any shortage of these resources could impact our future revenue and financial performance.
  • The scope, timing, and requirements of the forthcoming replacement rule to the AI Diffusion IFR remain uncertain.

Subsequent events

  • From October 27, 2025 through November 14, 2025, we repurchased 6 million shares for $1.1 billion pursuant to a pre-established trading plan.
  • In November 2025, we entered into an agreement, subject to certain closing conditions, to invest up to $10 billion in Anthropic.

“We believe that we have sufficient liquidity to meet our operating requirements for at least the next twelve months and thereafter for the foreseeable future, including our future obligations.”

— NVIDIA Corporation

Risks

3 source-verified filing excerpts. 1 item withheld because the evidence could not be matched. Selected excerpts are not a complete risk inventory.

Filing excerpt 1

EvidenceLong manufacturing lead times and uncertain supply and capacity availability, combined with a failure to estimate customer demand accurately, has led and could lead to mismatches between supply and demand.

Filing excerpt 2

EvidenceWe are subject to complex laws, rules, regulations, and political and other actions, including restrictions on the export of our products, which may adversely impact our business.

Filing excerpt 3

EvidenceOur investments in publicly traded and private companies could create volatility and fluctuations in our results.

Balance Sheet & Liquidity

Leverage: Identified debt as of 2025-10-26: reported debt balance of unestablished maturity scope of $7.5B. The concept behind this balance does not establish which maturities it covers. Total debt, net debt and debt-to-equity are therefore not stated.

Liquidity: Cash, cash equivalents and marketable securities were $60,608M as of October 26, 2025, up from $43,210M at January 26, 2025. The company has a $575 million commercial paper program with no commercial paper outstanding.

Working capital: Current assets $116.5B vs. current liabilities $26.1B (current ratio 4.47x). Prior reported balance sheet as of 2025-01-26: $80.1B vs. $18.0B (4.44x).

Maturities & covenants

  • As of October 26, 2025, we complied with the required covenants, which are non-financial in nature, under the outstanding notes.
  • Aggregate debt maturities as of October 26, 2025: $1,000M due in one year, $2,750M due in one to five years, $1,250M due in five to ten years, and $3,500M due in greater than ten years.

Notable Footnotes

ItemImpact
Commitments and ContingenciesManufacturing production, long-term supply and capacity, and other related commitments were $50.3B as of October 26, 2025, of which substantially all will be paid through fiscal year 2027. Multi-year cloud service agreement commitments were $26B. Investment commitments were $6.5B, including $5B in Intel Corporation subject to regulatory approval.
DebtNet carrying amount of debt was $8,467M, with $999M classified as short-term and $7,468M as long-term. The estimated fair value of debt was $7.6B.
Income TaxesIncome tax expense was $6.0B for the third quarter, an effective rate of 15.9%. The company is currently under examination by the Internal Revenue Service for fiscal years 2023 and 2024.
Segment InformationThe company has two reportable segments: Compute & Networking and Graphics. Segment operating income excludes stock-based compensation expense, unallocated operating expenses, and acquisition-related and other costs.

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AI-generated. Informational only, not investment advice. May be incomplete or contain errors. The authoritative source is always the original SEC filing.