Nvidia Corporation ((NVDA)) has held its Q4 earnings call. Read on for the main highlights of the call.
NVIDIA’s Latest Earnings Call: A Positive Outlook Amid Challenges
NVIDIA’s recent earnings call painted a generally positive picture, highlighting record-breaking revenue and significant growth in the data center and automotive segments. Despite facing challenges in the gaming and networking sectors and margin pressures during the Blackwell ramp, the company’s robust revenue growth and successful product launches suggest a promising future.
Record-Breaking Quarterly Revenue
NVIDIA reported a remarkable quarterly revenue of $39.3 billion, marking a 12% increase sequentially and a 78% rise year-on-year. This figure exceeded the company’s outlook of $37.5 billion, underscoring its strong financial performance.
Data Center Revenue Surge
The data center segment saw exceptional growth, with fiscal 2025 revenue reaching $115.2 billion, more than doubling from the previous year. The fourth-quarter data center revenue hit a record $35.6 billion, up 16% sequentially and 93% year-on-year.
Successful Blackwell Product Launch
NVIDIA’s Blackwell product launch was a resounding success, generating $11 billion in revenue and marking the fastest product ramp in the company’s history. This success highlights the strong market demand for NVIDIA’s innovative offerings.
Automotive Vertical Growth
The automotive segment also experienced significant growth, with revenue reaching a record $570 million, up 27% sequentially and 103% year-on-year. This growth was driven by advancements in autonomous vehicles and strategic partnerships with companies like Toyota and Aurora.
Professional Visualization Business Growth
NVIDIA’s professional visualization business reported revenue of $511 million, up 5% sequentially and 10% year-on-year. The full-year revenue of $1.9 billion represented a 21% increase year-on-year, reflecting the growing demand for visualization technologies.
Gaming Revenue Decline
Despite the overall positive performance, NVIDIA’s gaming revenue faced a decline, dropping 22% sequentially and 11% year-on-year. This decline was attributed to supply constraints affecting the gaming sector.
Networking Revenue Decline
Networking revenue also saw a slight decline, decreasing 3% sequentially. This occurred despite strong attachment to GPU compute systems, indicating challenges in the networking segment.
China Market Constraints
NVIDIA’s data center sales in China remained constrained due to export controls, with shipments expected to stay at current levels. This continues to be a challenging market for the company.
Gross Margin Pressure
The company reported GAAP gross margins of 73% and non-GAAP margins of 73.5%, both down sequentially. NVIDIA expects these margins to remain in the low seventies during the Blackwell ramp.
Strong Outlook for Fiscal 2026
Looking forward, NVIDIA anticipates a strong start to fiscal 2026, with expected Q1 revenue of approximately $43 billion. The company projects continued strong demand for its Blackwell architecture, which is expected to drive growth in both the data center and gaming sectors.
In conclusion, NVIDIA’s earnings call reveals a company that is thriving despite certain sector challenges. The record-breaking revenues and successful product launches underscore a positive outlook, with significant growth expected in the upcoming fiscal year.