Nvidia has reported impressive fiscal fourth-quarter results, showcasing a robust 75% surge in revenue from its core data center business. The company’s stock reflected this positive momentum, rising 2% during extended trading hours. Financial figures reveal earnings per share of $1.62, surpassing the estimated $1.53, with total revenue hitting $68.13 billion, outperforming the anticipated $66.21 billion.
Year-over-year, Nvidia’s revenue soared by 73%, up from $39.3 billion, with over 91% of sales derived from its thriving data center unit, which features its leading artificial intelligence (AI) chips. Within this segment, data center revenue reached $62.3 billion, exceeding the forecast of $60.69 billion. Net income nearly doubled from the same quarter last year, climbing to $43 billion, or $1.76 per share, compared to $22.1 billion or 89 cents per share previously.
Nvidia’s guidance further impressed analysts, predicting first-quarter revenue to be approximately $78 billion, well above the consensus estimate of $72.6 billion. It is important to note that the forecast does not factor in potential data center revenue from China.
The company’s stock performance has been notable, outperforming peers in the megacap category, with shares up 5% this year, all while the Nasdaq has seen a slight decline of 0.4%. Apple is the only other trillion-dollar firm to report gains in 2026, albeit at less than 1%.
Recent quarterly results from major tech companies-Alphabet, Amazon, Meta, and Microsoft-provided context for Nvidia’s growth outlook. As these companies ramp up AI investment, total capital expenditures across the sector may approach $700 billion.
In its commentary, Nvidia highlighted that hyperscalers remain its largest customer base, comprising over 50% of data center revenue. Sales from networking components within this sector skyrocketed by 263% year-over-year, totaling $10.98 billion, reflecting growing adoption of NVLink and Spectrum-X technologies.
Despite this, Nvidia’s gaming division-once its flagship segment-reported a 47% revenue increase year-over-year, bringing in $3.7 billion, though this marked a 13% dip from the previous quarter. Analysts speculate that Nvidia may not launch a new gaming GPU this year due to memory shortages, which are forcing companies to prioritize AI processors.
Concerns about memory supply constraints are echoed by CFO Colette Kress, who identified potential headwinds for the gaming business in the upcoming quarters. However, anticipation is building for Nvidia’s next-generation Vera Rubin systems, expected to roll out later this year. Kress stated that the company has initiated production and shipped initial samples, with forward-looking expectations for significant efficiency gains.
In addition to enhancing AI infrastructure, Nvidia is diversifying its supply chain beyond Asia to regions like the U.S. and Latin America, with manufacturing activities set to increase in Arizona and Mexico.
In the automotive sector, Nvidia reported $604 million in sales, which is a 6% increase from last year but fell short of the $654.8 million expected by analysts. Conversely, its professional visualization business excelled, generating $1.32 billion-up 159% and surpassing estimates.
Nvidia has also committed significant resources to supporting early-stage AI ventures, investing $17.5 billion in private companies and funds last year. CEO Jensen Huang expressed an ongoing collaboration with OpenAI, indicating that a partnership agreement is nearing completion. However, the future of a previously announced $100 billion deal remains uncertain, with no guarantees of finalization.
As Nvidia continues to navigate a dynamic tech landscape, it remains at the forefront of AI innovation, adapting swiftly to industry demands and challenges.
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Original Source: https://www.cnbc.com/2026/02/25/nvidia-nvda-earnings-report-q4-2026.html
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Publish Date: 2026-02-26 04:06:00
