Key Highlights
- Nvidia surpassed Q4 earnings projections with adjusted EPS of $1.62 versus consensus of $1.53
- Revenue totaled $68.13 billion, representing 73% growth compared to the prior year
- Data center segment revenue jumped 75% to reach $62.3 billion, fueled by artificial intelligence chip demand
- Q1 revenue forecast of $78 billion significantly surpassed Street estimates of $72.6 billion
- First Vera Rubin platform samples delivered to clients this week, with mass production scheduled for second half of 2026
Nvidia delivered impressive fiscal fourth-quarter financial results on Wednesday, exceeding Wall Street’s expectations across key metrics.
The chip giant reported adjusted earnings per share of $1.62, surpassing analyst consensus of $1.53. Total revenue landed at $68.13 billion, beating the $66.21 billion projection, and representing a 73% increase from the $39.3 billion generated in the same period last year.
Net income approximately doubled to $43 billion, translating to $1.76 per share, up from $22.1 billion, or 89 cents per share, in the comparable quarter of the previous fiscal year.
Shares climbed roughly 3.6% during after-hours trading session following the earnings release, building on a 5% year-to-date gain in 2026.
The data center division, which now represents over 91% of Nvidia’s overall revenue, posted 75% year-over-year growth to $62.3 billion. This performance exceeded analyst projections of $60.69 billion.
Major hyperscalers — including Alphabet, Amazon, Meta, and Microsoft — continue to be Nvidia’s primary customer base, contributing slightly more than 50% of data center revenue.
Networking Division Delivers Exceptional Growth
The data center segment’s networking business posted remarkable results. Networking component sales reached $10.98 billion, marking a 263% year-over-year increase. This dramatic growth reflects robust demand for Nvidia’s NVLink interconnect technology and Spectrum-X Ethernet switching solutions, bolstered by new contracts with Meta.
Gross profit margin registered at 75.2%, marginally exceeding the 75% consensus estimate.
Gaming division revenue increased 47% year-over-year to $3.7 billion, although it declined 13% sequentially from the previous quarter. According to CFO Colette Kress, supply chain limitations are anticipated to impact the gaming business through fiscal 2027 and potentially beyond.
First Quarter Outlook Exceeds Analyst Projections
Nvidia issued Q1 revenue guidance of $78 billion, plus or minus 2%. This outlook considerably exceeded analyst expectations of $72.6 billion. Management noted that the projection does not include any anticipated data center revenue from China.
The company is actively diversifying its supply chain beyond Asia, expanding into the United States and Latin America. Blackwell GPU production is now underway at TSMC’s manufacturing facilities in Arizona, while certain rack-scale system assembly operations are being conducted at a Foxconn facility in Mexico.
Earlier this week, the company delivered initial Vera Rubin platform samples to select customers. Vera Rubin represents the next-generation architecture following Grace Blackwell and is projected to provide 10 times improved performance per watt efficiency. Volume production shipments remain on schedule for the second half of 2026.
Nvidia’s stock has advanced 5% in 2026, outpacing the Nasdaq index, which has declined 0.4% during the same timeframe.
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