Pomegra
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Revenue and EPS Crush Consensus Estimates
NVIDIA (NASDAQ: NVDA) reported fourth-quarter revenue of $68.1 billion for the period ended January 25, 2026 — a 73% year-over-year surge and a 20% sequential increase from Q3's $57.0 billion. The result comfortably exceeded Wall Street's average estimate of approximately $66.9 billion.
GAAP diluted earnings per share came in at $1.76, nearly doubling the $0.89 reported in the same quarter a year ago. On a non-GAAP basis, EPS reached $1.62, topping analyst expectations of $1.53 — a 6.6% beat. GAAP net income surged 94% year-over-year to $42.96 billion, while non-GAAP net income reached $39.55 billion, up 79%. Gross margins expanded notably, with GAAP and non-GAAP gross margins hitting 75.0% and 75.2% respectively for the quarter — up 2.0 percentage points year-over-year and 1.6 points sequentially, signaling improving profitability as the Blackwell architecture ramps at scale. Operating income climbed 84% year-over-year to $44.3 billion on a GAAP basis.---
Data Center Remains the Unstoppable Demand Engine
The company's Data Center segment continued to drive the vast majority of growth, generating a record $62.3 billion in quarterly revenue — up 75% year-over-year and 22% sequentially. Full-year Data Center revenue reached $193.7 billion, a 68% annual gain, representing nearly 90% of total company revenue.
The quarter's Data Center dominance was fueled by insatiable enterprise and hyperscaler demand for NVIDIA's Blackwell GPU architecture. Major cloud operators — including Amazon Web Services (AWS), Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure — deepened their platform commitments during the quarter. A multiyear, multigenerational strategic partnership with Meta was announced, encompassing large-scale deployments of NVIDIA CPUs, networking equipment, and millions of Blackwell and next-generation Rubin GPUs.
NVIDIA also unveiled the next platform frontier: the NVIDIA Rubin architecture, comprising six new chips designed to deliver up to a 10x reduction in inference token cost compared to the current Blackwell platform. Cloud providers are already lined up to be among the first to deploy Vera Rubin-based instances.
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Agentic AI Inflection Point Drives CEO Conviction
NVIDIA founder and CEO Jensen Huang struck a boldly confident tone, declaring that the agentic AI inflection point has decisively arrived. "Computing demand is growing exponentially — the agentic AI inflection point has arrived. Grace Blackwell with NVLink is the king of inference today — delivering an order-of-magnitude lower cost per token — and Vera Rubin will extend that leadership even further," Huang stated. "Enterprise adoption of agents is skyrocketing. Our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth."
The NVIDIA Blackwell Ultra platform, benchmarked by SemiAnalysis InferenceX, was revealed to deliver up to 50x better performance and 35x lower cost for agentic AI workloads compared to the prior-generation Hopper platform — a performance differential that continues to lock in enterprise purchasing decisions.
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Gaming, Professional Visualization, and Automotive All Post Gains
Beyond Data Center, Gaming and AI PC revenue reached $3.7 billion for the quarter, up 47% year-over-year, driven by strong consumer adoption of Blackwell-powered GeForce RTX products. Full-year gaming revenue rose 41% to a record $16.0 billion.
Professional Visualization was a standout segment, posting quarterly revenue of $1.3 billion — a stunning 159% year-over-year jump — as demand for Blackwell-based workstation GPUs accelerated. Full-year revenue climbed 70% to a record $3.2 billion. Automotive and Robotics revenue reached $604 million in Q4, up 6% year-over-year, with full-year revenue rising 39% to a record $2.3 billion. Highlights included a new partnership with Mercedes-Benz for Level 2 driver assistance powered by NVIDIA DRIVE AV software, and the unveiling of the NVIDIA Alpamayo family of open autonomous vehicle models.---
Full-Year Fiscal 2026: A $215.9 Billion Landmark
The full fiscal year 2026 delivered total revenue of $215.9 billion, up 65% from $130.5 billion in fiscal 2025. Full-year GAAP net income reached $120.1 billion, up 65%, with diluted EPS of $4.90 compared to $2.94 in the prior year. Free cash flow for the fiscal year totaled $96.6 billion.
NVIDIA returned $41.1 billion to shareholders during fiscal 2026 through share repurchases and cash dividends. As of quarter-end, the company held $58.5 billion remaining under its share repurchase authorization and maintained $62.6 billion in cash and marketable securities on its balance sheet, nearly double the $43.2 billion held a year earlier.
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Q1 FY2027 Guidance Signals Continued Hyper-Growth
For the first quarter of fiscal 2027, NVIDIA issued revenue guidance of $78.0 billion ± 2%, representing sequential growth of approximately 14.5% and materially exceeding the Wall Street consensus estimate of approximately $72.8 billion at the time of reporting. The guidance notably excludes any assumed Data Center compute revenue from China, reflecting ongoing export restriction headwinds.
Gross margin guidance for Q1 FY27 stands at 74.9% (GAAP) and 75.0% (non-GAAP). NVIDIA also announced that beginning in Q1 FY27, stock-based compensation expense will be included in non-GAAP financial measures, a methodological change that increases comparability with broader industry reporting standards. Q1 non-GAAP operating expenses are expected to be approximately $7.5 billion, inclusive of $1.9 billion in stock-based compensation.---
Market Reaction and Competitive Landscape
NVDA shares posted an initial after-hours gain following the print before moderating during the analyst conference call, where CFO Colette Kress acknowledged that Chinese competitors are "making progress" — a remark that tempered initial euphoria. Trading volume on the day reached approximately 203 million shares, roughly 1.17x the 20-day average, indicating elevated investor engagement heading into the print. The stock entered the event trading at approximately $192.85, sitting above its 200-day moving average of $173.95.
NVIDIA's partnership with Anthropic — scaling Claude models on Microsoft Azure using NVIDIA systems — along with a non-exclusive licensing agreement with Groq and a collaboration with CoreWeave to build more than 5 gigawatts of AI factories by 2030, underscored the breadth of its strategic ecosystem reach.
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Outlook: The AI Industrial Revolution Accelerates
NVIDIA's fiscal Q4 and full-year fiscal 2026 results confirm the company's position at the center of the most significant infrastructure buildout in technology history. With Blackwell at full production ramp, the Rubin platform on the horizon, and enterprise agentic AI adoption accelerating across industries from healthcare and life sciences to automotive and financial services, NVIDIA's demand pipeline shows no structural signs of deceleration.
The company's ability to guide Q1 FY27 revenue to $78 billion — well above the prior Street consensus — while simultaneously absorbing China export restrictions without a guidance miss, reflects the depth and geographic diversification of its global customer base. Full-year fiscal 2027 tax rates are guided at 17%–19%.
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Mentioned tickers: NVDA
