Quick Summary
- Nvidia exceeded Q4 expectations with adjusted EPS of $1.62 compared to analyst projections of $1.53
- Revenue climbed to $68.13 billion, representing a 73% increase compared to the previous year
- Data center segment revenues jumped 75% to reach $62.3 billion, fueled by surging artificial intelligence processor demand
- First quarter revenue projection of $78 billion significantly surpassed Wall Street’s $72.6 billion forecast
- Company delivered initial Vera Rubin platform samples to clients this week, with mass production scheduled for second half of 2026
Nvidia delivered impressive fiscal fourth-quarter financial results on Wednesday, surpassing Wall Street projections across key metrics.
The chipmaker reported adjusted earnings per share of $1.62, exceeding analyst consensus of $1.53. Total revenue landed at $68.13 billion, beating estimates of $66.21 billion and marking a substantial 73% jump from the prior year’s $39.3 billion.
Net earnings nearly doubled, reaching $43 billion or $1.76 per diluted share, versus $22.1 billion or 89 cents per share in the comparable year-ago period.
Shares climbed approximately 3.6% in extended trading after the announcement, building on a 5% year-to-date advance through 2026.
The data center division, which now represents more than 91% of Nvidia’s overall revenue, posted 75% year-over-year growth to $62.3 billion. This performance topped analyst forecasts of $60.69 billion.
Major cloud computing providers including Alphabet, Amazon, Meta, and Microsoft continue to represent Nvidia’s primary customer base, comprising slightly more than half of data center revenues.
Network Equipment Sales Skyrocket
Networking hardware emerged as a standout performer within the data center business. Revenue from networking components reached $10.98 billion, soaring 263% compared to last year. This dramatic increase reflects robust appetite for Nvidia’s NVLink interconnect technology and Spectrum-X Ethernet switching platforms, bolstered by expanded partnerships with Meta.
Gross profit margins landed at 75.2%, modestly ahead of the 75% consensus estimate.
The gaming division posted 47% year-over-year growth to $3.7 billion, though revenues declined 13% sequentially. CFO Colette Kress indicated that supply limitations will likely continue pressuring the gaming segment through fiscal 2027 and potentially beyond.
Strong Outlook for Current Quarter
Nvidia projected first quarter revenues of $78 billion, with a typical plus or minus 2% range. This guidance substantially exceeded the $72.6 billion analyst consensus. Management emphasized that this outlook excludes any potential data center sales from Chinese markets.
The company continues diversifying its manufacturing footprint beyond Asia into North American and Latin American locations. Blackwell GPU production has commenced at TSMC’s facilities in Arizona, while certain rack-level system assembly now occurs at a Foxconn manufacturing site in Mexico.
Earlier this week, Nvidia distributed initial Vera Rubin platform samples to select customers. This next-generation architecture, succeeding Grace Blackwell, promises 10-fold improvements in performance-per-watt efficiency. Volume shipments remain scheduled for the latter half of 2026.
Nvidia shares have gained 5% in 2026, significantly outpacing the Nasdaq index’s 0.4% decline during the same timeframe.
