NVIDIA Profitability Analysis

NVDA Stock  USD 180.34  5.27  2.84%   
Based on the key profitability measurements obtained from NVIDIA's financial statements, NVIDIA may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in March. Profitability indicators assess NVIDIA's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1999-04-30
Previous Quarter
26.4 B
Current Value
31.9 B
Quarterly Volatility
5.6 B
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
At present, NVIDIA's Price To Sales Ratio is projected to increase significantly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 21.01, whereas Days Sales Outstanding is forecasted to decline to 37.70. At present, NVIDIA's Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Operating Income is expected to grow to about 98.4 B, whereas Change To Netincome is forecasted to decline to about 484.9 M. The current year's Gross Profit is expected to grow to about 118.2 B, whereas Pretax Profit Margin is forecasted to decline to 0.16.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.390.6234
Way Down
Slightly volatile
Net Profit Margin0.140.2598
Way Down
Slightly volatile
Operating Profit Margin0.150.2718
Way Down
Slightly volatile
Pretax Profit Margin0.160.2644
Way Down
Slightly volatile
Return On Assets0.120.1505
Significantly Down
Slightly volatile
Return On Equity0.180.2564
Way Down
Slightly volatile
For NVIDIA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NVIDIA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NVIDIA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NVIDIA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NVIDIA over time as well as its relative position and ranking within its peers.

NVIDIA's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
For information on how to trade NVIDIA Stock refer to our How to Trade NVIDIA Stock guide.The next projected EPS of NVIDIA is estimated to be 1.653 with future projections ranging from a low of 1.42 to a high of 1.98. NVIDIA's most recent 12-month trailing earnings per share (EPS TTM) is at 4.05. Please be aware that the consensus of earnings estimates for NVIDIA is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
NVIDIA is projected to generate 1.653 in earnings per share on the 30th of April 2026. NVIDIA earnings estimates show analyst consensus about projected NVIDIA EPS (Earning Per Share). It derives the highest and the lowest estimates based on NVIDIA's historical volatility. Many public companies, such as NVIDIA, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

NVIDIA Revenue Breakdown by Earning Segment

By analyzing NVIDIA's earnings estimates, investors can diagnose different trends across NVIDIA's analyst sentiment over time as well as compare current estimates against different timeframes.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NVIDIA. Anticipated expansion of NVIDIA directly elevates investor willingness to pay premium valuations. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive NVIDIA assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth
0.667
Dividend Share
0.04
Earnings Share
4.05
Revenue Per Share
7.668
Quarterly Revenue Growth
0.625
Understanding NVIDIA requires distinguishing between market price and book value, where the latter reflects NVIDIA's accounting equity. The concept of intrinsic value - what NVIDIA's is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Market sentiment, economic cycles, and investor behavior can push NVIDIA's price substantially above or below its fundamental value.
It's important to distinguish between NVIDIA's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding NVIDIA should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. In contrast, NVIDIA's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.

NVIDIA Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining NVIDIA's current stock value. Our valuation model uses many indicators to compare NVIDIA value to that of its competitors to determine the firm's financial worth.
NVIDIA is regarded third in return on equity category among its peers. It is considered to be number one stock in return on asset category among its peers reporting about  0.50  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for NVIDIA is roughly  2.01 . At present, NVIDIA's Return On Equity is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the NVIDIA's earnings, one of the primary drivers of an investment's value.

NVIDIA's Earnings Breakdown by Geography

NVIDIA Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

NVIDIA

Return On Equity

 = 

Net Income

Total Equity

 = 
1.07
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

NVIDIA

Return On Asset

 = 

Net Income

Total Assets

 = 
0.54
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

NVIDIA Return On Asset Comparison

NVIDIA is currently under evaluation in return on asset category among its peers.

NVIDIA Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in NVIDIA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NVIDIA will eventually generate negative long term returns. The profitability progress is the general direction of NVIDIA's change in net profit over the period of time. It can combine multiple indicators of NVIDIA, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income32.2 M33.8 M
Operating Income93.7 B98.4 B
Income Before Tax96.6 B101.5 B
Total Other Income Expense NetB3.1 B
Net Income83.8 B88 B
Income Tax Expense12.8 B13.5 B
Net Income Applicable To Common SharesB5.3 B
Net Income From Continuing Ops83.8 B88 B
Non Operating Income Net Other251.8 M264.4 M
Interest Income2.1 B2.2 B
Net Interest Income1.8 B1.9 B
Change To Netincome670.5 M484.9 M
Net Income Per Share 0.18  0.17 
Income Quality 1.34  1.41 
Net Income Per E B T 0.98  0.69 

NVIDIA Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on NVIDIA. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of NVIDIA position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the NVIDIA's important profitability drivers and their relationship over time.

NVIDIA Profitability Trends

NVIDIA profitability trend refers to the progression of profit or loss within a business. An upward trend means that NVIDIA's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is NVIDIA's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

NVIDIA Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between NVIDIA different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards NVIDIA in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down NVIDIA's future profitability.

NVIDIA Earnings Estimation Breakdown

The calculation of NVIDIA's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of NVIDIA is estimated to be 1.653 with the future projection ranging from a low of 1.42 to a high of 1.98. Please be aware that this consensus of annual earnings estimates for NVIDIA is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
1.42
Lowest
Expected EPS
1.653
1.98
Highest

NVIDIA Earnings Projection Consensus

Suppose the current estimates of NVIDIA's value are higher than the current market price of the NVIDIA stock. In this case, investors may conclude that NVIDIA is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and NVIDIA's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 30th of April 2026Current EPS (TTM)
6387.18%
0.0
1.653
4.05

NVIDIA Earnings History

Earnings estimate consensus by NVIDIA analysts from Wall Street is used by the market to judge NVIDIA's stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we suggest analyzing not only NVIDIA's upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.

NVIDIA Quarterly Gross Profit

41.85 Billion

At present, NVIDIA's Retained Earnings are projected to increase significantly based on the last few years of reporting. The current year's Price Earnings Ratio is expected to grow to 79.20, whereas Retained Earnings Total Equity is forecasted to decline to about 8.6 B. The current year's Net Income Applicable To Common Shares is expected to grow to about 5.3 B, whereas Common Stock Shares Outstanding is forecasted to decline to about 25 B.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of NVIDIA's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
178.26180.34182.42
Details
Intrinsic
Valuation
LowRealHigh
127.76129.84198.37
Details
Naive
Forecast
LowNextHigh
187.07189.15191.22
Details
63 Analysts
Consensus
LowTargetHigh
230.80253.62281.52
Details
Note that many institutional investors and large investment bankers can move markets due to the volume of NVIDIA assets they manage. They also follow analysts to some degree and often drive overall investor sentiments towards NVIDIA. With so many stockholders watching consensus numbers, the difference between actual and projected earnings is one of the most critical factors driving NVIDIA's stock price in the short term.

NVIDIA Earnings per Share Projection vs Actual

Actual Earning per Share of NVIDIA refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering NVIDIA predict the company's earnings will be in the future. The higher the earnings per share of NVIDIA, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.

NVIDIA Estimated Months Earnings per Share

For an investor who is primarily interested in generating an income out of investing in entities such as NVIDIA, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of NVIDIA should always be considered in relation to other companies to make a more educated investment decision.

NVIDIA Quarterly Analyst Estimates and Surprise Metrics

Earnings surprises can significantly impact NVIDIA's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
null
nullnullnullnull
2025-11-19
2025-10-311.241.30.06
2025-08-27
2025-07-311.011.050.04
2025-05-28
2025-04-300.750.810.06
2025-02-26
2025-01-310.850.890.04
2024-11-20
2024-10-310.750.810.06
2024-08-28
2024-07-310.630.680.05
2024-05-22
2024-04-300.5590.6120.053
2024-02-21
2024-01-310.4610.5160.05511 
2023-11-21
2023-10-310.3360.4020.06619 
2023-08-23
2023-07-310.2070.270.06330 
2023-05-24
2023-04-300.0920.1090.01718 
2023-02-22
2023-01-310.0810.0880.007
2022-11-16
2022-10-310.0710.058-0.01318 
2022-08-24
2022-07-310.04990.0510.0011
2022-05-25
2022-04-300.130.1360.006
2022-02-16
2022-01-310.1230.1320.009
2021-11-17
2021-10-310.1110.1170.006
2021-08-18
2021-07-310.1020.1040.002
2021-05-26
2021-04-300.08220.09150.009311 
2021-02-24
2021-01-310.080.0775-0.0025
2020-11-18
2020-10-310.0640.0730.00914 
2020-08-19
2020-07-310.0490.0550.00612 
2020-05-21
2020-04-300.0420.0450.003
2020-02-13
2020-01-310.050.0473-0.0027
2019-11-14
2019-10-310.0390.0450.00615 
2019-08-15
2019-07-310.0290.0310.002
2019-05-16
2019-04-300.020.0220.00210 
2019-02-14
2019-01-310.0190.020.001
2018-11-15
2018-10-310.0470.046-0.001
2018-08-16
2018-07-310.0440.0490.00511 
2018-05-10
2018-04-300.040.0510.01127 
2018-02-08
2018-01-310.0290.0390.0134 
2017-11-09
2017-10-310.0240.0330.00937 
2017-08-10
2017-07-310.0170.0230.00635 
2017-05-09
2017-04-300.0160.020.00425 
2017-02-09
2017-01-310.0210.0250.00419 
2016-11-10
2016-10-310.0140.0210.00750 
2016-08-11
2016-07-310.0090.010.00111 
2016-05-12
2016-04-300.0080.0080.0
2016-02-17
2016-01-310.0080.0090.00112 
2015-11-05
2015-10-310.0060.0110.00583 
2015-08-06
2015-07-310.0030.0040.00133 
2015-05-07
2015-04-300.0060.0060.0
2015-02-11
2015-01-310.0070.0090.00228 
2014-11-06
2014-10-310.0070.0080.00114 
2014-08-07
2014-07-310.0050.0060.00120 
2014-05-06
2014-04-300.0040.0060.00250 
2014-02-12
2014-01-310.0050.0060.00120 
2013-11-07
2013-10-310.0050.0050.0
2013-08-08
2013-07-310.0030.0040.00133 
2013-05-09
2013-04-300.0020.00450.0025125 
2013-02-13
2013-01-310.0060.0070.00116 
2012-11-08
2012-10-310.0070.0080.00114 
2012-08-09
2012-07-310.0040.0060.00250 
2012-05-11
2012-04-300.0020.0030.00150 
2012-02-15
2012-01-310.0050.0050.0
2011-11-10
2011-10-310.0060.0070.00116 
2011-08-11
2011-07-310.0060.0060.0
2011-05-12
2011-04-300.0050.0060.00120 
2011-02-16
2011-01-310.0040.0060.00250 
2010-11-11
2010-10-310.0040.0040.0
2010-08-12
2010-07-310.0030.001-0.00266 
2010-05-13
2010-04-300.0050.0060.00120 
2010-02-17
2010-01-310.0050.0060.00120 
2009-11-05
2009-10-310.0030.0050.00266 
2009-08-06
2009-07-31-0.0010.0020.003300 
2009-05-07
2009-04-30-0.003-0.0020.00133 
2009-02-10
2009-01-31-0.002-0.004-0.002100 
2008-11-06
2008-10-310.0030.0050.00266 
2008-08-12
2008-07-310.0030.0030.0
2008-05-08
2008-04-300.010.009-0.00110 
2008-02-13
2008-01-310.0120.0120.0
2007-11-08
2007-10-310.0090.0110.00222 
2007-08-09
2007-07-310.0070.0090.00228 
2007-05-10
2007-04-300.0060.0070.00116 
2007-02-13
2007-01-310.0070.0090.00228 
2006-11-09
2006-10-310.0060.0070.00116 
2006-05-11
2006-04-300.0050.0050.0
2006-02-16
2006-01-310.0040.0040.0
2005-11-09
2005-10-310.0030.0040.00133 
2005-08-11
2005-07-310.0030.0030.0
2005-05-12
2005-04-300.0020.0060.004200 
2005-02-17
2005-01-310.0020.0030.00150 
2004-11-04
2004-10-310.0010.0020.001100 
2004-08-05
2004-07-310.0010.0020.001100 
2004-05-06
2004-04-300.0010.0020.001100 
2004-02-12
2004-01-310.0010.0030.002200 
2003-11-06
2003-10-310.0010.0010.0
2003-08-07
2003-07-310.0010.0010.0
2003-05-08
2003-04-300.0010.0010.0
2003-02-13
2003-01-310.0020.001-0.00150 
2002-11-07
2002-10-310.0010.0010.0
2002-08-15
2002-07-310.0010.0010.0
2002-05-22
2002-04-300.0040.0040.0
2002-02-14
2002-01-310.0030.0040.00133 
2001-11-08
2001-10-310.0020.0020.0
2001-08-14
2001-07-310.0020.0020.0
2001-05-22
2001-04-300.0020.0020.0
2001-02-15
2001-01-310.0020.001-0.00150 
2000-11-09
2000-10-310.0010.0010.0
2000-08-21
2000-07-310.0010.0010.0
2000-05-16
2000-04-300.0010.0010.0
2000-02-15
2000-01-310.0010.0010.0
1999-11-18
1999-10-310.0020.001-0.00150 
1999-08-18
1999-07-310.0020.0020.0
1999-05-18
1999-04-300.0010.0020.001100 

Use NVIDIA in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if NVIDIA position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NVIDIA will appreciate offsetting losses from the drop in the long position's value.

NVIDIA Pair Trading

NVIDIA Pair Trading Analysis

The ability to find closely correlated positions to NVIDIA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NVIDIA when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back NVIDIA - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling NVIDIA to buy it.
The correlation of NVIDIA is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as NVIDIA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NVIDIA moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for NVIDIA can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your NVIDIA position

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When determining whether NVIDIA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NVIDIA's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nvidia Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nvidia Stock:
Check out Correlation Analysis.
For information on how to trade NVIDIA Stock refer to our How to Trade NVIDIA Stock guide.
You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
To fully project NVIDIA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NVIDIA at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include NVIDIA's income statement, its balance sheet, and the statement of cash flows.
Potential NVIDIA investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although NVIDIA investors may work on each financial statement separately, they are all related. The changes in NVIDIA's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on NVIDIA's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.