NVIDIA Corp. (NASDAQ:NVDA)

The financial data exhibits a consistent upward trajectory in revenue over the analyzed periods, with a particularly sharp increase from January 28, 2024, to January 26, 2025. This growth is accompanied by a proportional rise in the cost of revenue, though the gross profit has expanded substantially, indicating effective cost management relative to revenue generation.

Revenue and Profitability

Revenue increased significantly from $10,918 million in 2020 to $130,497 million in 2025, reflecting a more than tenfold growth. Gross profit also rose markedly from $6,768 million to $97,858 million, showcasing strong margin expansion despite rising costs.

Cost of Revenue and Operating Expenses

The cost of revenue increased correspondingly, from $4,150 million to $32,639 million, maintaining a consistent ratio relative to revenue expansion. Operating expenses, which include research and development as well as sales, general and administrative expenses, showed a steady increase, with research and development expenses rising from $2,829 million to $12,914 million, suggesting continued investment in innovation. Sales, general and administrative expenses increased more modestly but still doubled over the period. An acquisition termination cost of $1,353 million was recorded in 2023, which is a one-time charge impacting that year's expenses.

Operating Income

Operating income exhibited notable volatility, increasing substantially from $2,846 million in 2020 to $10,041 million in 2022 before dipping to $4,224 million in 2023. This dip coincides with the recorded acquisition termination cost. Subsequently, operating income surged dramatically to $81,453 million by 2025, indicating a significant improvement in operating efficiency and profitability.

Interest and Other Income/Expenses

Interest income grew from $178 million to $1,786 million, while interest expenses remained relatively stable, indicating enhanced financial income possibly from investments or other non-core activities. The net effect of other income (expense) showed fluctuations, with a negative impact in earlier years turning into substantial positive contributions from 2024 onward.

Income Before Tax and Net Income

Income before income tax followed a pattern similar to operating income, peaking in 2025 at $84,026 million after a decline in 2023. Income tax expenses varied, showing occasional income tax benefits, except for a considerable tax expense recorded in 2024 and 2025, which impacted net income. Despite this, net income surged from $2,796 million in 2020 to $72,880 million in 2025, indicating strong overall profitability and effective management of tax obligations.

Overall, the company demonstrated robust growth in revenue and profitability, supported by increasing gross margins and efficient expense management. Significant investments in research and development indicate a focus on innovation and future growth potential. The financial results show resilience through fluctuations, with a strong recovery in operating income and net income in the latest periods.