Nvidia Reports Record Q4 Revenue of $68.1 Billion, AI Demand Drives 75% Data Center Growth

Nvidia (NASDAQ: NVDA) reported fourth-quarter fiscal 2026 revenue of $68.1 billion on February 25, exceeding analyst expectations of $66.2 billion, with adjusted earnings per share of $1.62 beating estimates of $1.53. The company’s data center revenue surged 75% year-over-year to a record $62.3 billion, driven by sustained demand for its Blackwell AI platforms, as Nvidia issued Q1 revenue guidance of $78 billion that surpassed Wall Street forecasts of $72.9 billion.

Financial Performance Exceeds Expectations

Nvidia delivered exceptional fourth-quarter results for the period ended January 25, 2026, with revenue increasing 73% from $39.3 billion in the prior-year period. Net income reached $43.0 billion, or $1.76 per diluted share, compared with $22.1 billion, or $0.89 per share, in the same quarter last year.

For the full fiscal year 2026, Nvidia reported revenue of $215.9 billion, up 65% from fiscal 2025, with data center revenue totaling $193.7 billion for the year, a 68% increase. The company’s gross margin for the quarter stood at 75.0% on a GAAP basis and 75.2% non-GAAP.

Following the earnings release, Nvidia shares rose as much as 4% in after-hours trading before paring gains, with the stock up approximately 1% in extended trading. The company returned $41.1 billion to shareholders through share repurchases and dividends during fiscal 2026.

Data Center Dominance and AI Infrastructure Expansion

Nvidia’s data center segment continued its remarkable growth trajectory, with quarterly revenue reaching $62.3 billion, up 22% sequentially and 75% year-over-year. The company noted that it has scaled its data center business nearly 13 times since the emergence of ChatGPT in fiscal 2023.

Networking revenue, a critical component of Nvidia’s data center offerings, hit $11 billion for the quarter, growing more than 3.5 times year-over-year. For the full year, networking revenue exceeded $31 billion, up more than 10x compared to fiscal 2021, the year Nvidia acquired Mellanox.

Grace Blackwell systems accounted for roughly two-thirds of data center revenue in the quarter. The company revealed that 9 gigawatts of infrastructure on Blackwell are now deployed and utilized by major cloud service providers, hyperscalers, AI model makers, and enterprises.

Nvidia announced it has shipped the first Vera Rubin samples to customers, with production shipments on track for the second half of 2026. The Rubin platform, comprising six new chips, promises up to 10x reduction in inference token cost compared to the Blackwell platform.

CEO Commentary and Market Outlook

CEO Jensen Huang expressed strong confidence in continued AI demand, stating, “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 added, “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.”

Regarding supply chain capabilities, Nvidia indicated it has strategically secured inventory and capacity to address future demand, with purchase commitments extending into calendar 2027. The company’s annual R&D budget now approaches $20 billion, supporting generational architectural development and innovation across compute, networking, and software.

Gaming and Other Business Segments

Nvidia’s gaming revenue reached $3.7 billion for the quarter, up 47% year-over-year but down 13% sequentially as channel inventory normalized following holiday demand. The company cautioned that supply constraints may impact the gaming business in the first quarter of fiscal 2027 and beyond.

Professional visualization revenue totaled $1.3 billion, up 159% year-over-year and 74% sequentially, marking its first time above $1 billion. Automotive revenue came in at $604 million, up 6% year-over-year, driven by demand for self-driving solutions.

Strategic Partnerships and Investments

Nvidia announced several major partnerships during the quarter, including a multi-year, multi-generational strategic collaboration with Meta spanning on-premises, cloud, and AI infrastructure, encompassing large-scale deployment of Nvidia CPUs, networking, and millions of Blackwell and Rubin GPUs.

The company also disclosed an investment and deep technology partnership with Anthropic, which is scaling its Claude model on Microsoft Azure powered by Nvidia systems. Additionally, Nvidia entered into a non-exclusive licensing agreement with Groq to accelerate AI inference at global scale.

Regarding potential investment in OpenAI, Nvidia confirmed it continues negotiations toward a partnership agreement and believes it is close to finalizing a deal, though no assurance was provided that a transaction will be completed.

China Market and Regulatory Considerations

Nvidia addressed its China operations, noting that in February 2026, the U.S. government granted the company a license to ship H200 products to specific customers in China in small quantities. However, Nvidia has not yet generated any revenue through the H200 licensing program and faces ongoing uncertainty regarding future imports to China.

The company explicitly stated that its Q1 revenue guidance does not assume any data center compute revenue from China. Nvidia sold approximately $60 million worth of H20 chips in China during the period.

Chinese competitors are making progress, with recent IPOs strengthening some rivals, and these companies have potential to disrupt the global AI industry structure and affect Nvidia’s competitive position worldwide.

FAQ: Understanding Nvidia’s Q4 Results

Q: What were Nvidia’s key financial results for Q4 2026?

A: Nvidia reported quarterly revenue of $68.1 billion, up 73% year-over-year, with adjusted EPS of $1.62. Data center revenue reached $62.3 billion, up 75% from the prior year. The company issued Q1 2027 revenue guidance of $78 billion, significantly above analyst expectations.

Q: What is driving Nvidia’s data center growth?

A: Data center growth is fueled by sustained demand for Nvidia’s Blackwell AI platforms, with deployments spanning cloud providers, hyperscalers, AI model makers, enterprises, and sovereign nations. Networking revenue grew over 3.5x year-over-year, and Grace Blackwell systems represented approximately two-thirds of data center revenue in the quarter.

Q: What is Nvidia’s outlook for supply and demand?

A: Nvidia expects sequential revenue growth throughout calendar 2026 and has secured inventory and supply commitments extending into calendar 2027. The company projects that the combined Blackwell and Rubin revenue opportunity will exceed the previously stated $500 billion target.

Q: How is Nvidia addressing the China market amid export restrictions?

A: Nvidia received a license to ship limited H200 products to specific China customers but has not yet recognized any revenue from these shipments. The company’s Q1 guidance excludes any data center compute revenue from China, and management noted that Chinese competitors are making progress, potentially impacting long-term competitive dynamics.