Nvidia shares jump after quarterly results beat expectations

Nvidia reported stronger-than-expected third-quarter results, lifting its shares in postmarket trading. The company posted adjusted earnings of $1.30 per share, above estimates of $1.24. Revenue reached $57.01 billion, up 62% from a year earlier and ahead of the $55.19 billion consensus.

Data center sales remained the company’s main driver. The segment produced $51.2 billion in revenue, rising 66% year over year and topping expectations of $49.34 billion. Gaming revenue came in at $4.3 billion, up 30% but slightly below the $4.42 billion forecast. Professional visualization revenue reached $760 million, up 56% and ahead of estimates. Automotive revenue was $592 million, missing the $620.9 million projection.

Adjusted operating income totaled $37.75 billion, an increase of 62%. Adjusted operating expenses were $4.22 billion, in line with expectations. Adjusted gross margin was 73.6%, down from 75% a year earlier. Free cash flow rose 32% to $22.09 billion. Research and development expenses were $4.71 billion, slightly above forecasts.

Nvidia said four customers each accounted for more than 10% of quarterly revenue, with contributions of 22%, 15%, 13% and 11%. The company noted higher costs tied to new chips and systems but pointed to improving margins as Blackwell products scale.

Fourth-quarter revenue is projected at about $65 billion, plus or minus 2%, above expectations of $61.98 billion. Nvidia expects GAAP and non-GAAP gross margins of roughly 74.8% and 75%, with operating expenses of about $6.7 billion and $5.0 billion, respectively.

Chief Executive Jensen Huang said demand for cloud GPUs remains strong and described accelerating activity across training and inference. Bloomberg Intelligence analyst Kunjan Sobhani said visibility into Nvidia’s longer-term pipeline will remain important for investor sentiment.

Nvidia ended the quarter with $60.6 billion in cash and equivalents. Its results helped lift other AI-related stocks, including CoreWeave, Nebius, AMD, Micron and Broadcom. Nvidia shares rose more than 4% after the report, partially reversing a recent pullback from record levels. Nvidia (NVDA) has a Disruption Score of 5 and is part of the Disruption Aristocrats.