They study analyzed the profitability of groundnut production in Ardo-kola Local Government Area of Taraba State, Nigeria. Despite the fact that Nigeria has been one of the leading producer of groundnut in the world, the demand for the product to meet up nutritional requirement in the country is still high. The specific objectives of the study were to describe the socio-economic characteristics of groundnut farmers, determine the factors influencing groundnut production, estimate profitability of groundnut production and identify the constraints in groundnut production in the study area. Primary data were collected from 150 groundnut farmers using multi-stage and purposive sampling techniques. The data were analyzed using frequency and mean, farm budgeting techniques and regression analysis. The results revealed that majority (67%) of the respondents were male. About 48% of the respondents were youths of 31-40 years old, majority (60%) of the respondents were married while 93% of the respondents had formal education. The gross margin analysis shows that groundnut farmers incurred a total variable cost of ₦102, 000, fixed cost of ₦33, 000 and a total revenue of ₦ 220,000. The regression result indicated that 3 variables regressed were statistically significant. The variable X1 and X4 were statistically significant at 1% level of significance while X2 was statically significant at 5% level of significance. The result further revealed that the business of groundnut farming is a profitable venture. Based on the finding, it is recommended that farmers should organized themselves into groups for easy access to formal sources of credit to provide needed farm implement and quality seed.