Nvidia’s newest quarterly earnings confirmed what the market has been betting on: the company remains the defining bellwether for AI infrastructure. For its fourth quarter of fiscal 2026 (ended January 25, 2026), Nvidia reported record revenue of $68.1 billion, up 20% sequentially and 73% year over year, capped by another blockbuster Data Center print and a notably stronger revenue outlook for the next quarter.
This report matters beyond Nvidia’s stock. It’s a real-time gauge of hyperscaler capex, enterprise AI adoption, and whether the industry’s shift from training-heavy spend toward inference and “agentic AI” workloads is accelerating. Nvidia’s numbers suggest demand is not only holding up—it’s scaling.
Key Nvidia earnings highlights (Q4 FY2026)
Nvidia delivered strong profitability alongside its revenue surge:
- Revenue: $68.1B
- GAAP gross margin: 75.0% (non-GAAP 75.2%)
- GAAP diluted EPS: $1.76 (non-GAAP $1.62)
- GAAP net income: $43.0B
- GAAP operating income: $44.3B
For the full fiscal year 2026, Nvidia posted revenue of $215.9B, up 65% year over year, with GAAP EPS of $4.90.
Just as important for equity holders: Nvidia said it returned $41.1B to shareholders in buybacks and dividends during FY2026 and ended the quarter with $58.5B still authorized for repurchases. It also declared a $0.01 quarterly dividend payable April 1, 2026 (record date March 11, 2026).
Data Center revenue stays the growth engine
If you’re looking for the single most important line item in Nvidia’s earnings, it remains Data Center. In Q4 FY2026, Nvidia reported:
- Data Center revenue: $62.3B (up 22% sequentially; up 75% year over year)
- Full-year Data Center revenue: $193.7B (up 68% year over year)
That’s a scale of infrastructure spend that’s hard to overstate. Nvidia continues to benefit from a platform shift toward accelerated computing—GPUs, high-speed networking, and increasingly integrated systems designed for AI at industrial volumes.
The company’s commentary leaned heavily into inference economics and next-gen platforms (including Blackwell and the roadmap beyond it), reinforcing a key narrative: reducing cost-per-token and improving throughput per watt is becoming the central competitive axis as AI deployments move from experimentation to production.
Gaming, Pro Viz, and Automotive: Smaller, but moving
While Data Center is the locomotive, the rest of Nvidia still matters for diversification and cyclical balance:
Gaming
- Gaming revenue: $3.7B (up 47% year over year; down 13% sequentially)
Nvidia attributed the sequential decline to normal channel inventory moderation after holiday strength, while year-over-year growth points to continued demand for newer RTX products and AI-enhanced gaming features.
Professional Visualization
- Pro Viz revenue: $1.3B (up 74% sequentially; up 159% year over year)
This segment’s acceleration suggests workstation and professional AI compute demand is broadening—especially as “AI everywhere” pushes creators and enterprises toward higher-end GPUs.
Automotive and Robotics
- Automotive revenue: $604M (up 6% year over year)
Automotive remains smaller in absolute dollars, but it’s strategically important: long design cycles, sticky platforms, and a potential long runway as software-defined vehicles and autonomy stacks mature.
Guidance: Q1 FY2027 revenue expected at $78B
The forward outlook was a headline in its own right. Nvidia guided for first quarter FY2027 revenue of $78.0B, ±2%, along with:
- GAAP gross margin: 74.9% ± 50 bps
- Non-GAAP gross margin: 75.0% ± 50 bps
- GAAP operating expenses: ~$7.7B
- Non-GAAP operating expenses: ~$7.5B
One nuance investors should not miss: Nvidia said that starting in Q1 FY2027 it will include stock-based compensation expense in its non-GAAP financial measures. That accounting policy shift can change how “non-GAAP” profitability trends look quarter to quarter, so comparisons will require extra care.
Also notable: Nvidia explicitly stated it is not assuming any Data Center compute revenue from China in its outlook—an important signal given ongoing regulatory and geopolitical constraints.
What investors should watch next
- Data Center mix and margins: Growth is massive, but mix (systems vs. chips, networking attach, and customer concentration) can influence margins even with strong demand.
- Inference-led demand: If the market is shifting from training to inference at scale, Nvidia’s cost-per-token claims and platform cadence become even more central to spend decisions.
- Guidance durability: The jump to ~$78B implies momentum into the new fiscal year—investors will scrutinize whether this is a new run-rate or a peak that normalizes.
- Non-GAAP definition change: Including SBC in non-GAAP metrics can reshape headline comparisons and valuation narratives.
Conclusion
Nvidia’s latest quarterly results delivered exactly what the company needed to show: record revenue, dominant Data Center growth, strong profitability, and a bigger forward guide. With $68.1B in Q4 sales and $78B revenue guidance for Q1, Nvidia is signaling that demand for AI compute remains expansive—even as the market debates how sustainable the cycle is. The next question isn’t whether AI infrastructure is still growing; it’s how long Nvidia can keep compounding at this scale while navigating supply, product transitions, and geopolitics.
FAQ
What were the latest quarterly results?
Nvidia reported Q4 FY2026 revenue of $68.1B, GAAP EPS of $1.76, and GAAP gross margin of 75.0%.
How much did they make in Data Center revenue this quarter?
Data Center revenue was $62.3B in Q4 FY2026.
What is the guidance for next quarter?
For Q1 FY2027, Nvidia expects $78.0B revenue (±2%) and GAAP gross margin around 74.9%.
Did they change its non-GAAP reporting?
Yes. Nvidia said that starting in Q1 FY2027, stock-based compensation will be included in non-GAAP financial measures, affecting comparability versus prior periods.
Is China included in the guidance?
It stated it is not assuming any Data Center compute revenue from China in its Q1 FY2027 outlook.
Disclaimer
This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Financial figures are reported by the company and may be revised or updated. Investing involves risk, including the possible loss of principal. Always do your own research and consider consulting a qualified financial advisor.
