Nvidia (NVDA) Stock-Based Compensation History: Quarterly Data (2020–2026)

Nvidia Stock-Based Compensation: 2020–2026

Nvidia (NVDA) recorded $1.63 billion in stock-based compensation (SBC) in fiscal Q4 FY2027 (ending January 2026). For calendar year 2025, total SBC was approximately $6.07 billion. While SBC has grown in absolute terms alongside Nvidia’s workforce and rising stock price, it has become a decreasing percentage of revenue as revenue growth has far outpaced headcount growth.

Nvidia Annual SBC by Year

SBC as a Percentage of Revenue: Declining Trend

The most important aspect of Nvidia’s SBC trend is not the absolute dollar growth — it’s the dramatic decline as a percentage of revenue. In 2022, SBC represented 8.8% of revenue, which is a significant dilution burden for shareholders. By 2025, as revenue grew from $28.6 billion to $187.1 billion (6.5x), SBC grew from $2.5 billion to $6.1 billion (2.4x). The result: SBC as a percentage of revenue fell from 8.8% to 3.2%.

This trend is the opposite of what many high-growth technology companies experience. Companies like Palantir have historically had SBC ratios of 20–25% of revenue. Nvidia’s declining SBC ratio reflects the fact that revenue scaled dramatically faster than headcount — a hallmark of scalable platform businesses that Nvidia has, in the AI era, essentially become despite its hardware roots.

GAAP vs. Non-GAAP: The SBC Bridge

SBC is a non-cash charge that is included in GAAP operating expenses but excluded from non-GAAP (adjusted) operating income and EPS. The practical impact on Nvidia’s reported results:

• Q4 2026 GAAP operating income: $44.3B at a 65% margin
• Q4 2026 Non-GAAP operating income (est.): ~$45.9B at ~67% margin (adding back ~$1.63B SBC)

The GAAP/non-GAAP gap widens when SBC is large as a percentage of revenue (as it was in 2022–2023) and narrows as that ratio declines. See Nvidia EPS History for the diluted EPS trajectory and how GAAP and non-GAAP diverge.

SBC and Dilution

SBC grants are eventually settled in shares, which dilutes existing shareholders unless offset by buybacks. Nvidia has been buying back substantially more than its SBC issuance:

• FY2026 (cal. 2025): $33.5B in buybacks vs. $6.1B SBC
• Net buyback impact: approximately $27B per year of net share count reduction

This means Nvidia’s diluted share count is actually declining despite significant SBC programs. SBC dilution is effectively invisible in Nvidia’s per-share metrics because buybacks offset it many times over. See Nvidia Free Cash Flow History to understand how buybacks are funded.

Comparison to Peers

Nvidia’s 3.2% SBC ratio compares favorably to peers, particularly given its hardware manufacturing context (where SBC is less common than in pure software). The ratio is essentially identical to Microsoft’s on a revenue-percentage basis.

Key Takeaways

• SBC grew from $374M/quarter (2020 Q3) to $1.63B/quarter (2026 Q1) in absolute terms
• As a percentage of revenue, SBC declined from 8.8% (2022) to 3.2% (2025) — a 5.6pp improvement
• Revenue growth (6.5x in 2022–2025) dramatically outpaced headcount/SBC growth (~2.4x)
• $33.5B in buybacks in FY2026 (cal. 2025) more than offsets $6.1B in SBC dilution