NVDANEUTRAL

NVDA Return on Equity (ROE) Analysis

114.3%

Higher than 96% of Technology sector peers

Updated 249h ago·SEC filings & market data

Key Takeaway

NVIDIA’s Return on Equity (ROE) of 114.3% means that for every dollar of shareholders’ equity, the company generated $1.143 in net profit over the past year — a measure of how efficiently it uses invested capital.

Sector Performance

96th percentile

NVDA

114.3%

Sector Median

8.7%

Sector Avg

-3.3%

Prior Period

76.3%(Jun 2026)

↑ Improving

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Deep Analysis

This far exceeds the sector median of 6.9%, placing NVIDIA in the 96th percentile among its Technology peers. The year-over-year change is not available, but quarter-over-quarter the ROE rose by 49.8 percentage points, indicating a sharp recent acceleration in profitability relative to equity. The combination of an already elite-level ROE and a large quarterly jump suggests that current capital efficiency is at an extreme, which can imply both a strong near-term opportunity and a risk if growth slows or equity expands. This metric strongly supports the overall BULLISH verdict, as such high and rising returns typically signal a competitive advantage and effective management.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about NVDA?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does NVDA's Return on Equity (ROE) compare to its sector?

NVDA's Return on Equity (ROE) of 114.3% compares to a Technology sector median of 8.7%, placing it in the 96th percentile.

Who are NVDA's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: SQ (0.0%), CRWD (-0.2%), MDB (-1.0%), ZS (-3.7%), APLD (-5.6%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.