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NVIDIA Corporation beat analyst revenue and guidance estimates in its results for the second quarter of the fiscal year 2025. The firm posted $30 billion in revenue, for 122% in annual growth along with $16.9 billion in non GAAP net income for 152% annual growth. Crucially though, NVIDIA also guided $32.5 billion revenue for the current quarter, which is its third quarter for the fiscal year 2025.
This surpassed LSEG revenue guidance estimates of $31.77 billion, in a tepid beat that was followed by rapid volatility in the firm's shares during aftermarket trading. As the results became official, NVIDIA's shares initially dropped by 9.24% before jumping by 5.28% to ensure that the stock was down by an overall 2.62% at 4:28 p.m. Eastern Time.
NVIDIA's Data Center Compute Revenue Grows By 162% Annually, While Gaming Posts 16% Growth
Heading into today's release, everyone's key question for NVIDIA was about its Blackwell GPU lineup. Word on the street has claimed for weeks that Blackwell has been delayed due to design problems, and NVIDIA's prepared remarks from CEO Jensen Huang addressed the issue right off the bat. Huang led with the firm's Hopper GPU lineup, sharing that "demand remains strong," He added that "anticipation" for Blackwell is "incredible" and "samples are shipping to our partners and customers."
On the revenue front, NVIDIA earned $30 billion in revenue. This marked a 122% annual growth and beat estimates of $28.68 billion with a hefty margin. However, analysts were also on the watch out for NVIDIA's guidance for the current quarter since it helps gauge the ongoing industry interest in upgrading to AI computing products. On this front, NVIDIA guided $32.5 billion in revenue, which was roughly $700 million above analyst estimates of $31.77 billion ahead of the earnings.
The firm's stock, which initially jumped by 2.49% in the immediate aftermath of the earnings, was unable to sustain the trend. It proceeded to tank by 9.24% before paring the losses and gaining 4.31%.
NVIDIA's earnings report, which is unique in the sense that it is accompanied by comments from the CFO was more forthcoming for Blackwell. As part of her remarks, CFO Collette Kress shared that NVIDIA's customers "continue to accelerate their Hopper architecture purchases while gearing up to adopt Blackwell." She then proceeded to admit that NVIDIA had undergone a design change for the leading edge artificial intelligence GPU.
As per Kress, NVIDIA "executed a change to the Blackwell GPU mask to improve production yield." While the firm shipped Blackwell's customer samples during the second quarter, the GPU's production ramp "is scheduled to begin in the fourth quarter and continue into fiscal 2026," according to the CFO. Subsequently, NVIDIA expects "to ship several billion dollars in Blackwell revenue" in its fourth quarter, which ends in late January.
NVIDIA's receivables, which reflect its business partnerships, boomed during Q2. They sat at $14.1 billion and doubled over the year ago quarter's $7 billion. Over Q1, the receivables grew markedly too, as they had sat at $12.4 billion in the previous quarter. NVIDIA also approved a massive $50 billion share repurchase as well as maintaining a $0.01 quarterly dividend per share. The stock was down 4.57% in the aftermarket at 4:52 p.m. ET.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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