Analysis of Reportable Segments
NVIDIA Corp. operates in 2 segments: Compute & Networking and Graphics.
Segment Profit Margin
NVIDIA Corp., profit margin by reportable segment
| Jan 25, 2026 | Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Compute & Networking | 67.26% | 71.33% | 67.54% | 33.73% | 41.63% | 37.25% |
| Graphics | 40.77% | 35.55% | 43.25% | 38.23% | 53.52% | 46.90% |
Based on: 10-K (reporting date: 2026-01-25), 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31).
Segment profit margins exhibited distinct trends over the observed period. The Compute & Networking segment experienced significant volatility, while the Graphics segment demonstrated a more moderate pattern of fluctuation.
- Compute & Networking
- The Compute & Networking segment’s profit margin increased from 37.25% in 2021 to 41.63% in 2022, indicating improved profitability. However, this was followed by a decrease to 33.73% in 2023. A substantial increase was then observed in 2024, reaching 67.54%, followed by a further rise to 71.33% in 2025. The most recent year, 2026, shows a slight decline to 67.26%, though remaining significantly above levels seen in 2021-2023. This segment’s performance suggests a sensitivity to market conditions or specific product cycles, with a recent period of strong growth.
- Graphics
- The Graphics segment’s profit margin began at 46.90% in 2021 and rose to a peak of 53.52% in 2022. A subsequent decline to 38.23% occurred in 2023. The segment saw a partial recovery in 2024, increasing to 43.25%, but then decreased again to 35.55% in 2025. The latest reported value for 2026 is 40.77%, representing a modest increase from the prior year. This segment’s trajectory indicates a less dramatic, but still noticeable, pattern of fluctuation compared to Compute & Networking.
- Comparative Analysis
- In 2021 and 2022, the Graphics segment consistently reported higher profit margins than the Compute & Networking segment. However, from 2024 onwards, the Compute & Networking segment surpassed the Graphics segment in profitability. The divergence in performance between the two segments became particularly pronounced in 2025 and 2026, suggesting differing dynamics influencing their respective financial results.
Overall, the period demonstrates a shift in relative profitability between the two segments, with Compute & Networking experiencing a substantial improvement while Graphics exhibited more moderate changes. Further investigation into the factors driving these trends would be beneficial.
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Segment Profit Margin: Compute & Networking
NVIDIA Corp.; Compute & Networking; segment profit margin calculation
| Jan 25, 2026 | Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 130,141) | 82,875) | 32,016) | 5,083) | 4,598) | 2,548) |
| Revenue | 193,479) | 116,193) | 47,405) | 15,068) | 11,046) | 6,841) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 67.26% | 71.33% | 67.54% | 33.73% | 41.63% | 37.25% |
Based on: 10-K (reporting date: 2026-01-25), 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31).
1 2026 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 130,141 ÷ 193,479 = 67.26%
The Compute & Networking segment demonstrated a significant evolution in financial performance between January 31, 2021, and January 26, 2026. Operating income and revenue both exhibited consistent growth over this period, but the rate of increase accelerated notably in later years. This growth is reflected in the segment profit margin, which also experienced substantial fluctuation.
- Operating Income
- Operating income increased from US$2,548 million in 2021 to US$130,141 million in 2026. The most substantial increase occurred between 2023 and 2024, growing from US$5,083 million to US$32,016 million, and continuing strongly through 2026. This indicates a period of rapidly expanding profitability.
- Revenue
- Revenue followed a similar trajectory, rising from US$6,841 million in 2021 to US$193,479 million in 2026. Like operating income, revenue growth accelerated significantly from 2023 onward, with a particularly large jump between 2023 (US$15,068 million) and 2024 (US$47,405 million). This suggests increasing demand for the segment’s offerings.
- Segment Profit Margin
- The segment profit margin began at 37.25% in 2021 and increased to 41.63% in 2022. A decrease was observed in 2023, falling to 33.73%. However, the margin rebounded strongly in 2024, reaching 67.54%, and remained high at 71.33% in 2025 before settling at 67.26% in 2026. The fluctuations suggest a dynamic pricing environment or changes in the cost structure of the segment, with the recent increases indicating improved efficiency or pricing power.
Overall, the Compute & Networking segment experienced substantial growth in both revenue and operating income. While the segment profit margin experienced some volatility, it ultimately reached a high level by 2026, indicating a successful period of expansion and profitability.
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Segment Profit Margin: Graphics
NVIDIA Corp.; Graphics; segment profit margin calculation
| Jan 25, 2026 | Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 9,156) | 5,085) | 5,846) | 4,552) | 8,492) | 4,612) |
| Revenue | 22,459) | 14,304) | 13,517) | 11,906) | 15,868) | 9,834) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 40.77% | 35.55% | 43.25% | 38.23% | 53.52% | 46.90% |
Based on: 10-K (reporting date: 2026-01-25), 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31).
1 2026 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 9,156 ÷ 22,459 = 40.77%
The segment profit margin for Graphics exhibited fluctuating performance over the observed period. Initial growth was followed by a decline and subsequent partial recovery. Operating income and revenue trends provide context for understanding these margin movements.
- Overall Trend
- The segment profit margin began at 46.90% in January 2021, increased to a peak of 53.52% in January 2022, then decreased to 38.23% in January 2023. A moderate increase to 43.25% occurred in January 2024, followed by a further decline to 35.55% in January 2025. The most recent period, January 2026, shows a recovery to 40.77%.
- Revenue Correlation
- Revenue generally increased from January 2021 to January 2022, aligning with the increase in segment profit margin. Revenue then decreased in January 2023, coinciding with the significant drop in segment profit margin. Revenue experienced moderate growth in January 2024 and January 2025, while the segment profit margin showed mixed results. A substantial increase in revenue in January 2026 corresponded with an increase in segment profit margin.
- Operating Income Correlation
- Operating income mirrored the revenue trend, increasing through January 2022, decreasing in January 2023, and then showing fluctuating growth. The decline in operating income in January 2023 directly contributed to the lower segment profit margin observed in that period. The increase in operating income in January 2026 also contributed to the margin recovery.
- Peak and Trough Analysis
- The peak segment profit margin of 53.52% in January 2022 occurred alongside the highest revenue and operating income figures during the analyzed timeframe. Conversely, the lowest segment profit margin of 35.55% in January 2025 coincided with relatively lower operating income and moderate revenue growth.
The observed fluctuations suggest a sensitivity of the segment profit margin to both revenue volume and operational efficiency. The recent recovery in January 2026, driven by both revenue and operating income increases, indicates a potential stabilization or improvement in the segment’s performance.
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Revenue
NVIDIA Corp., revenue by reportable segment
US$ in millions
| Jan 25, 2026 | Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Compute & Networking | 193,479) | 116,193) | 47,405) | 15,068) | 11,046) | 6,841) |
| Graphics | 22,459) | 14,304) | 13,517) | 11,906) | 15,868) | 9,834) |
| Consolidated | 215,938) | 130,497) | 60,922) | 26,974) | 26,914) | 16,675) |
Based on: 10-K (reporting date: 2026-01-25), 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31).
Revenue performance across reportable segments demonstrates significant shifts over the observed period. The Consolidated revenue exhibits a substantial growth trajectory, particularly in the latter years. A detailed examination of individual segment contributions reveals varying patterns.
- Compute & Networking Segment
- The Compute & Networking segment experienced consistent growth from 2021 to 2023, increasing from US$6.841 billion to US$15.068 billion. However, this segment then demonstrated exponential growth, reaching US$47.405 billion in 2024, US$116.193 billion in 2025, and US$193.479 billion in 2026. This represents a dramatic acceleration in revenue generation within this segment.
- Graphics Segment
- The Graphics segment showed initial growth from 2021 to 2022, rising from US$9.834 billion to US$15.868 billion. Subsequently, revenue decreased to US$11.906 billion in 2023. A modest recovery occurred in 2024 and 2025, reaching US$13.517 billion and US$14.304 billion respectively, before increasing to US$22.459 billion in 2026. The growth in this segment, while positive in the final year, was considerably less pronounced than that of the Compute & Networking segment.
- Consolidated Revenue
- Consolidated revenue increased from US$16.675 billion in 2021 to US$26.914 billion in 2022. Growth slowed in 2023, with revenue reaching US$26.974 billion. A significant surge is then observed, with revenue climbing to US$60.922 billion in 2024, US$130.497 billion in 2025, and US$215.938 billion in 2026. This substantial increase in consolidated revenue is largely attributable to the exceptional performance of the Compute & Networking segment.
- Segment Contribution
- In 2021 and 2022, the Graphics segment contributed a substantial portion of the consolidated revenue. However, by 2024, the Compute & Networking segment became the dominant revenue driver. This trend continues through 2025 and 2026, with the Compute & Networking segment representing an increasingly larger proportion of overall revenue. The Graphics segment, while still contributing, plays a comparatively smaller role in the overall revenue mix in the later years.
The observed trends suggest a strategic shift or market dynamic favoring the Compute & Networking segment. The substantial growth in this segment significantly impacts the overall consolidated revenue, overshadowing the more moderate performance of the Graphics segment.
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Operating income (loss)
NVIDIA Corp., operating income (loss) by reportable segment
US$ in millions
| Jan 25, 2026 | Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Compute & Networking | 130,141) | 82,875) | 32,016) | 5,083) | 4,598) | 2,548) |
| Graphics | 9,156) | 5,085) | 5,846) | 4,552) | 8,492) | 4,612) |
| Consolidated | 139,297) | 87,960) | 37,862) | 9,635) | 13,090) | 7,160) |
Based on: 10-K (reporting date: 2026-01-25), 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31).
Operating income demonstrates significant fluctuations and growth across the reported segments over the observed period. The Compute & Networking segment experienced substantial expansion, while the Graphics segment exhibited more moderate and, at times, declining performance. Consolidated operating income reflects the combined performance of these segments.
- Compute & Networking
- Operating income for the Compute & Networking segment increased from US$2,548 million in 2021 to US$4,598 million in 2022, representing a growth of approximately 80.3%. A further increase to US$5,083 million was observed in 2023, though the rate of growth slowed. A dramatic surge occurred in 2024, with operating income reaching US$32,016 million. This upward trajectory continued into 2025 and 2026, reaching US$82,875 million and US$130,141 million respectively. This segment’s performance is characterized by accelerating growth in the later years of the period.
- Graphics
- The Graphics segment’s operating income began at US$4,612 million in 2021 and rose to US$8,492 million in 2022, an increase of approximately 84.3%. However, operating income decreased significantly in 2023 to US$4,552 million. A modest recovery was seen in 2024, with operating income reaching US$5,846 million. This was followed by a slight decrease in 2025 to US$5,085 million, and a subsequent increase to US$9,156 million in 2026. The Graphics segment’s performance is marked by volatility and slower overall growth compared to Compute & Networking.
- Consolidated
- Consolidated operating income mirrored the trends of its constituent segments. It increased from US$7,160 million in 2021 to US$13,090 million in 2022, a growth of approximately 83.0%. A decline was observed in 2023, with operating income falling to US$9,635 million. A substantial increase occurred in 2024, reaching US$37,862 million, driven largely by the performance of the Compute & Networking segment. This growth continued in 2025 and 2026, with consolidated operating income reaching US$87,960 million and US$139,297 million respectively. The consolidated results demonstrate a strong correlation with the performance of the Compute & Networking segment, particularly in the later years.
The significant divergence in performance between the Compute & Networking and Graphics segments suggests a shifting business focus or changing market dynamics. The substantial growth in Compute & Networking operating income appears to be the primary driver of overall consolidated performance, overshadowing the more moderate and volatile performance of the Graphics segment.
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