NVDA CY3Q25: Results & Guidance Hit Our Targets

Nvidia delivered record-breaking results for CY3Q25 with revenue of $57 billion, landing on our preview estimate. The company reaffirmed the $500 billion revenue visibility for Blackwell and Rubin through CY2026, a key focus area highlighted in our preview. Management emphasized that AI demand continues to exceed supply, with clouds sold out and the installed base running at fully utilized.

Results: In-Line with Estimates

• **Revenue: $57 billion (+22% QoQ, +94% YoY).
  **This matched our preview estimate of ~$57 billion. Growth was driven by the seamless ramp of Blackwell and sustained demand for Hopper.

• **Gross Margin: Non-GAAP GM was 73.6%.
  **Slightly below our forecast of 73.8%. Margins benefited from Data Center mix and improved cycle times.

• Data Center Revenue: Record revenue of $51 billion, up 66% YoY

  • Compute: Grew 56% YoY, driven primarily by the GB300 ramp.

  • Networking: Revenue of $8.2 billion, up 162% YoY, driven by NVLink and Spectrum-X.

Outlook: Guidance at High End of Expectations

• Revenue Guidance: $65 billion ±2%.
  The guidance exceeded market consensus ($62-63B) and aligns with the high end of our preview estimate range ($64-65B).

• Margin Guidance: Non-GAAP Gross Margin is expected to be 75.0% ± 50 bps.
  This is consistent with our projection of ~74.8%, reflecting the anticipated benefit from the GB300 volume ramp.

• CY26 (FY27) Margin: The company aims to hold gross margins in the mid-70s range for CY2026.

Key Commentary & Strategic Updates