Stock Analysis on Net
Stock Analysis on Net

NVIDIA Corp. (NASDAQ:NVDA)

Common-Size Income Statement 
Quarterly Data

NVIDIA Corp., common-size consolidated income statement (quarterly data)

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3 months ended: Jan 25, 2026 Oct 26, 2025 Jul 27, 2025 Apr 27, 2025 Jan 26, 2025 Oct 27, 2024 Jul 28, 2024 Apr 28, 2024 Jan 28, 2024 Oct 29, 2023 Jul 30, 2023 Apr 30, 2023 Jan 29, 2023 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Jan 30, 2022 Oct 31, 2021 Aug 1, 2021 May 2, 2021 Jan 31, 2021 Oct 25, 2020 Jul 26, 2020 Apr 26, 2020
Revenue 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of revenue -25.00 -26.59 -27.58 -39.48 -26.97 -25.44 -24.85 -21.65 -24.03 -26.05 -29.95 -35.37 -36.66 -46.43 -56.52 -34.47 -34.58 -34.80 -35.22 -35.89 -36.90 -37.37 -41.15 -34.94
Gross profit 75.00% 73.41% 72.42% 60.52% 73.03% 74.56% 75.15% 78.35% 75.97% 73.95% 70.05% 64.63% 63.34% 53.57% 43.48% 65.53% 65.42% 65.20% 64.78% 64.11% 63.10% 62.63% 58.85% 65.06%
Research and development -8.09 -8.25 -9.18 -9.05 -9.44 -9.66 -10.29 -10.44 -11.16 -12.66 -15.10 -26.07 -32.26 -32.79 -27.21 -19.52 -19.19 -19.75 -19.13 -20.37 -22.89 -22.15 -25.79 -23.86
Sales, general and administrative -1.88 -1.99 -2.40 -2.36 -2.48 -2.56 -2.80 -2.98 -3.21 -3.80 -4.61 -8.80 -10.33 -10.64 -8.83 -7.14 -7.37 -7.84 -8.08 -9.19 -10.09 -10.90 -16.22 -9.51
Acquisition termination cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -16.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating expenses -9.97% -10.24% -11.58% -11.42% -11.92% -12.22% -13.09% -13.43% -14.37% -16.46% -19.71% -34.87% -42.59% -43.43% -36.04% -42.99% -26.56% -27.59% -27.22% -29.55% -32.98% -33.05% -42.01% -33.38%
Operating income 65.02% 63.17% 60.84% 49.11% 61.10% 62.34% 62.06% 64.92% 61.60% 57.49% 50.34% 29.76% 20.76% 10.13% 7.44% 22.54% 38.86% 37.60% 37.56% 34.55% 30.12% 29.58% 16.84% 31.69%
Interest income 0.84 1.09 1.27 1.17 1.30 1.35 1.48 1.38 1.33 1.29 1.38 2.09 1.90 1.48 0.69 0.22 0.13 0.10 0.09 0.11 0.12 0.15 0.34 1.01
Interest expense -0.11 -0.11 -0.13 -0.14 -0.16 -0.17 -0.20 -0.25 -0.29 -0.35 -0.48 -0.92 -1.06 -1.10 -0.97 -0.82 -0.80 -0.87 -0.92 -0.94 -1.04 -1.12 -1.40 -0.81
Other income (expense), net 8.22 2.39 4.78 -0.41 1.87 0.10 0.63 0.29 1.17 -0.36 0.44 -0.21 -0.31 -0.19 -0.07 -0.16 -0.71 0.31 0.06 2.38 0.20 -0.08 -0.03 -0.03
Other income (expense), net 8.95% 3.38% 5.92% 0.62% 3.01% 1.27% 1.90% 1.42% 2.22% 0.58% 1.34% 0.96% 0.53% 0.20% -0.36% -0.76% -1.37% -0.46% -0.77% 1.55% -0.72% -1.06% -1.09% 0.16%
Income before income tax 73.98% 66.55% 66.76% 49.73% 64.11% 63.61% 63.96% 66.35% 63.82% 58.07% 51.68% 30.71% 21.29% 10.34% 7.09% 21.78% 37.49% 37.14% 36.79% 36.11% 29.40% 28.52% 15.75% 31.85%
Income tax (expense) benefit -10.92 -10.57 -10.23 -7.11 -7.95 -8.57 -8.71 -9.21 -8.23 -7.06 -5.87 -2.31 2.08 1.13 2.70 -2.26 1.79 -2.45 -0.31 -2.33 -0.28 -0.25 0.34 -2.08
Net income 63.06% 55.98% 56.53% 42.61% 56.17% 55.04% 55.26% 57.14% 55.59% 51.01% 45.81% 28.41% 23.37% 11.47% 9.79% 19.52% 39.28% 34.69% 36.48% 33.77% 29.12% 28.27% 16.09% 29.77%

Based on: 10-K (reporting date: 2026-01-25), 10-Q (reporting date: 2025-10-26), 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-K (reporting date: 2025-01-26), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26).

The financial performance, as represented by the common-size income statement, reveals significant fluctuations over the observed period. Revenue consistently represents 100% of itself, as expected. However, substantial shifts are evident in the proportions of various expense and income items relative to revenue, indicating evolving operational dynamics.

Cost of Revenue
Cost of revenue as a percentage of revenue demonstrates considerable volatility. Initially, it fluctuates between approximately 34% and 41% before experiencing a dramatic increase to 56.52% in July 2022. This is followed by a decrease, but remains elevated compared to earlier periods, settling around 25-27% in the most recent quarters. This suggests a significant change in production costs or pricing strategies around mid-2022.
Gross Profit
Gross profit mirrors the cost of revenue trends, initially ranging from 58.85% to 65.06%. The spike in cost of revenue in July 2022 directly impacts gross profit, which declines to 43.48%. Subsequently, gross profit recovers, reaching a high of 75.00% in October 2023, before moderating to around 60-66% in the latest reported quarters. This indicates a strong ability to recover margins after the cost increases, though recent performance suggests some stabilization at a higher margin than pre-2022.
Research and Development (R&D)
R&D expenses, as a percentage of revenue, generally trend downward over the period, starting around 22-26% and decreasing to approximately 8-11% in the most recent quarters. This suggests a potential shift in investment strategy, possibly indicating a maturation of existing product lines or a change in focus towards commercialization rather than intensive research. The decrease is particularly pronounced after July 2023.
Sales, General, and Administrative (SG&A)
SG&A expenses exhibit a similar decreasing trend to R&D, though less dramatic. Starting around 8-16%, they decline to approximately 2-3% in the latest quarters. This further supports the notion of increased operational efficiency or a shift in resource allocation. The decline is more pronounced after April 2023.
Operating Income
Operating income demonstrates a corresponding increase as cost of revenue, R&D, and SG&A expenses decrease. It fluctuates significantly, initially between 16% and 32%, dips to a low of 7.44% in July 2022, and then rises to a high of 66.35% in April 2024, before settling around 55-65% in the most recent quarters. This highlights the impact of cost management and operational improvements on profitability.
Net Income
Net income follows a similar pattern to operating income, influenced by fluctuations in interest and other income/expenses, as well as income tax expense. It begins around 16-30%, declines to 9.79% in July 2022, and then increases to a peak of 63.06% in October 2025, before stabilizing around 56-66% in the latest periods. The impact of income tax expense is notable, with significant fluctuations throughout the period.
Interest and Other Income/Expenses
Interest income and other income/expenses exhibit variability, but generally contribute positively to net income, particularly in later periods. The significant increase in "Other income (expense), net" in the later quarters, reaching as high as 8.95%, warrants further investigation. Interest expense remains a relatively small percentage of revenue throughout the period.

Overall, the common-size income statement reveals a period of significant change, particularly around mid-2022, followed by a period of substantial improvement in profitability. The decreasing trends in R&D and SG&A expenses, coupled with the increasing operating and net income margins, suggest a successful strategy of cost management and operational efficiency. However, the initial spike in cost of revenue and the subsequent recovery require further scrutiny to understand the underlying drivers.