How does NVIDIA (NVDA) make money?

NVIDIA (NVDA) primarily makes money through Data Center, which accounts for 89.7% of total revenue. For TTM through Q1 2026, NVIDIA generated $215.94B in total revenue with a net profit margin of 55.6%.

What is NVIDIA (NVDA) gross profit margin?

NVIDIA (NVDA) reported a gross profit margin of 71.1% for TTM through Q1 2026, equivalent to $153.46B in gross profit. This means NVIDIA retains 71.1% of each revenue unit after direct costs of production.

What is NVIDIA (NVDA) operating profit margin?

NVIDIA (NVDA) reported an operating profit margin of 60.4% for TTM through Q1 2026, equivalent to $130.39B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is NVIDIA (NVDA) net profit margin?

NVIDIA (NVDA) reported a net profit margin of 55.6% for TTM through Q1 2026, equivalent to $120.07B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does NVIDIA (NVDA) invest in R&D?

NVIDIA (NVDA) invested $18.50B in research and development in TTM through Q1 2026 (8.6% of total revenue). R&D spending reflects investment in future products, services, and technologies.

How much does NVIDIA (NVDA) spend on capital expenditures?

NVIDIA (NVDA) spent $6.04B on capital expenditures in TTM through Q1 2026 (2.8% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is NVIDIA (NVDA) free cash flow?

NVIDIA (NVDA) generated $96.68B in free cash flow for TTM through Q1 2026 (44.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is NVIDIA (NVDA) effective tax rate?

NVIDIA (NVDA) had an effective tax rate of 15.1% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

How NVIDIA (NVDA) Makes Money: A Visual Guide

NVIDIA (NVDA) generated $215.94B in revenue, earning $120.07B in net profit (55.6% margin). Its largest revenue source is Data Center (89.7% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

NVIDIA (NVDA) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending January 25, 2026 (reported February 25, 2026).

Frequently asked questions

How does NVIDIA (NVDA) make money?: NVIDIA (NVDA) primarily makes money through Data Center, which accounts for 89.7% of total revenue. For TTM through Q1 2026, NVIDIA generated $215.94B in total revenue with a net profit margin of 55.6%.
What is NVIDIA (NVDA) gross profit margin?: NVIDIA (NVDA) reported a gross profit margin of 71.1% for TTM through Q1 2026, equivalent to $153.46B in gross profit. This means NVIDIA retains 71.1% of each revenue unit after direct costs of production.
What is NVIDIA (NVDA) operating profit margin?: NVIDIA (NVDA) reported an operating profit margin of 60.4% for TTM through Q1 2026, equivalent to $130.39B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is NVIDIA (NVDA) net profit margin?: NVIDIA (NVDA) reported a net profit margin of 55.6% for TTM through Q1 2026, equivalent to $120.07B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does NVIDIA (NVDA) invest in R&D?: NVIDIA (NVDA) invested $18.50B in research and development in TTM through Q1 2026 (8.6% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does NVIDIA (NVDA) spend on capital expenditures?: NVIDIA (NVDA) spent $6.04B on capital expenditures in TTM through Q1 2026 (2.8% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is NVIDIA (NVDA) free cash flow?: NVIDIA (NVDA) generated $96.68B in free cash flow for TTM through Q1 2026 (44.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is NVIDIA (NVDA) effective tax rate?: NVIDIA (NVDA) had an effective tax rate of 15.1% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q1 2026.