NVIDIA Reports Strong Q3 FY2025 Outlook with Rising Gross Margins

NVIDIA, a leader in accelerated computing, has announced its quarterly financial results, showcasing strong demand for its products and services. The company’s GAAP gross margin stands at 74.4%, with non-GAAP gross margin reaching 75%.

For the quarter, GAAP earnings per diluted share was $0.67, up 12% from the previous quarter and up 168% from a year ago. Non-GAAP earnings per diluted share was $0.68, up 11% from the previous quarter and up 152% from a year ago.

GAAP gross margin is expected to be 74.4%, which includes the impact of stock-based compensation expense, acquisition-related costs, and other costs. By excluding these items, the non-GAAP gross margin increases to 75.0%. This suggests that the company’s core business operations are expected to generate a higher gross margin than reported under GAAP.

The company has been actively launching new technologies and partnerships, including the NIM Agent Blueprints for enterprises to develop their own AI. NVIDIA has also announced generative AI models and microservices for OpenUSD language, geometry, physics, and materials.

The revenue table outlines the expected financial performance of NVIDIA Corporation for the third quarter of fiscal year 2025. The company presents both GAAP (Generally Accepted Accounting Principles) and non-GAAP financial measures.

The GAAP operating expenses are anticipated to be $4,250 million, which includes stock-based compensation expense, acquisition-related costs, and other costs. After adjusting for these items, the non-GAAP operating expenses decrease to $3,000 million. This implies that the company’s core business operations are expected to incur lower operating expenses than reported under GAAP.

Note that non-GAAP financial measures are not substitutes for GAAP measures and may have limitations as they do not comply with GAAP. Investors should carefully evaluate both GAAP and non-GAAP financial measures when assessing the company’s performance.

In conclusion, NVIDIA Corporation’s reconciliation of GAAP to non-GAAP outlook for Q3 FY2025 provides insight into the company’s expected financial performance. The non-GAAP measures exclude certain items that are not reflective of the company’s core business operations, allowing investors to better understand the underlying performance of the business. However, it is crucial to evaluate both GAAP and non-GAAP financial measures when assessing the company’s performance.