Nvidia (NVDA) Gross Profit History: Quarterly Data (2020–2026)
Nvidia quarterly gross profit from 2020 Q3 through 2026 Q1, sourced from SEC EDGAR XBRL. Includes the 2022 inventory correction and 2023 AI-driven margin expansion.
| Quarter | Gross Profit (USD) | YoY Change |
|---|
Source: SEC EDGAR XBRL (GrossProfit). Quarters marked * are derived (annual filing minus prior three quarters). Calendar year quarters shown.
Nvidia Gross Profit: 2020–2026
Nvidia (NVDA) generated $51.1 billion in gross profit in fiscal Q4 FY2027 (ending January 2026), representing a 75% gross margin on $68.1 billion in revenue. For calendar year 2025, gross profit totaled approximately $131.1 billion on $187.1 billion in revenue — a 70.1% gross margin.
Gross profit has grown at an even faster rate than revenue, as Nvidia’s product mix has shifted toward higher-margin AI compute chips and away from lower-margin consumer gaming GPUs.
Nvidia Annual Gross Profit by Year
| Year | Gross Profit | Gross Margin |
|---|---|---|
| 2025 (cal.) | $131.1B | 70.1% |
| 2024 (cal.) | $85.9B | 75.9% |
| 2023 (cal.) | $31.3B | 69.9% |
| 2022 (cal.) | $16.5B | 57.8% |
| 2021 (cal.) | $15.6B | 64.4% |
Source: SEC EDGAR XBRL.
The 2022 Gross Profit Collapse
Nvidia’s 2022 gross profit story is the single most important context for understanding the AI boom’s financial impact. In Q2 2022 (calendar), gross profit was $5.4 billion on a 65.5% margin. By Q3 2022, gross profit had collapsed to $2.9 billion on a 43.5% margin — a 46% sequential drop. This was driven by:
- Gaming revenue freefall: PC gaming demand collapsed post-COVID as consumers redirected spending
- Channel inventory write-downs: Nvidia recorded charges for excess inventory of older gaming GPUs sitting in retail channels
- Product mix shift: The higher-margin gaming GPUs were being replaced by lower-margin data center products that hadn’t yet reached scale
The 2022 trough (43.5% gross margin in Q3 2022) was the lowest Nvidia had seen since the early smartphone era. For context, Nvidia’s long-run gross margin had been 60–66% in 2020–2021. The severity of the 2022 gross profit compression generated significant concern that Nvidia’s business model was structurally damaged. That turned out to be entirely incorrect.
AI-Driven Gross Profit Expansion
Starting in 2023 Q3 (calendar), when Data Center revenue began its exponential surge, Nvidia’s gross profit expanded dramatically:
- Q3 2023: $9.5B gross profit (70.1% margin) — doubling from the prior quarter
- Q4 2023: $13.4B gross profit (73.9% margin)
- Q2 2024: $20.4B gross profit (78.4% margin) — peak so far
The gross margin improvement above 70% reflects the pricing power of the H100/H200 GPU ecosystem. When supply is constrained and every major AI lab in the world needs the same chip, pricing power is extraordinary. See Nvidia Gross Margin History for the percentage trend.
Key Takeaways
- Gross profit grew from ~$2.3B/quarter (2020 Q3) to $51.1B/quarter (2026 Q1) — 22x in 5 years
- The 2022 gross profit collapse (to $2.9B in Q3 2022) was driven by gaming inventory charges
- AI GPU demand drove gross profit back to record levels by 2023 Q4
- At 75% gross margin, Nvidia generates more gross profit per dollar of revenue than most software companies
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