Nvidia released its first financial results of the year, showing strong revenue growth of 78% and profit growth of 71%. The company reported $39.3 billion in revenue, $22.1 billion in net income, and $0.89 adjusted earnings per share for its fourth fiscal quarter. This beats analysts’ expectations of $38.1 billion in revenue and $19.6 billion in net income.
Nvidia’s datacenter unit drove the growth, with sales reaching $35.6 billion, surpassing forecasts by $2 billion. The company expects revenue to rise 2% in its spring quarter, aligning with Wall Street estimates. CEO Jensen Huang described demand for Nvidia’s Blackwell GPU system as “amazing.”
However, despite strong earnings, Nvidia stock fell slightly after hours, partly due to a decline in gross profit margins. CFO Colette Kress attributed this to a transition to more complex and higher-cost systems.
Nvidia’s fiscal year net profit reached $72.9 billion, a 145% increase from the previous year. The company’s market value has fallen by nearly 10% over the past month due to concerns about generative AI models that can run on less of Nvidia’s semiconductor technology. Analysts remain optimistic about Nvidia’s stock, with an average price target of $175 and 38% upside potential.
In contrast, Apple’s recent earnings report showed only a 4% revenue expansion and 10% profit growth. Despite this, Nvidia’s growth still dwarfs the broader market. CEO Jensen Huang downplayed concerns that AI spending will slow down, stating it is “complete opposite” of reality.
Source: https://www.forbes.com/sites/dereksaul/2025/02/26/nvidia-earnings-ai-giant-brought-in–39-billion-during-fourth-quarter-smashing-forecasts