Beyond expectations! NVIDIA's latest earnings report is out! Jensen Huang: Demand is growing exponentially

The most closely watched financial report in the global market has just been released.

Early this morning Beijing time, NVIDIA, the global leader in AI, announced its latest earnings report for fiscal year 2026 Q4, showing revenue of $68.1 billion, a significant year-over-year increase of 73%, surpassing analyst expectations of $65.684 billion. Additionally, NVIDIA’s guidance for future performance exceeded market forecasts, greatly easing concerns about an “AI bubble” and demonstrating sustained strong demand driven by AI.

Following the announcement, NVIDIA’s stock price surged sharply in after-hours trading, rising over 4% at one point. CEO Jensen Huang stated in the earnings call that computing demand is growing exponentially—marking a turning point for Agentic AI. The application of AI in enterprises is accelerating rapidly.

Overnight, the three major U.S. stock indices all closed higher: the S&P 500 rose 0.81%, the Nasdaq jumped 1.26%, and the Dow increased 0.63%. Large tech stocks all gained, with Microsoft, Meta, and Broadcom up over 2%; NVIDIA, Amazon, and Tesla up over 1%; Apple, Google, and TSMC saw modest gains. Additionally, AI giants like Western Digital, Seagate Technology, and Applied Materials also experienced strong increases.

NVIDIA’s Latest Earnings Report

Early this morning Beijing time, NVIDIA announced its financial results for Q4 FY2026 (ending January 31, 2026) and provided guidance for Q1 FY2027.

The report shows that NVIDIA’s Q4 revenue was $68.1 billion, up 73% year-over-year, beating market expectations of $65.684 billion, and compared to $39.331 billion in the same period last year. Data center revenue reached $62.3 billion, exceeding the expected $60.62 billion and up from $35.58 billion last year; networking revenue was $10.98 billion, above analyst estimates of $9.02 billion; gaming revenue was $3.7 billion, slightly below the expected $4.01 billion.

Regarding market-anticipated guidance, NVIDIA expects Q1 revenue between $76.44 billion and $79.56 billion, surpassing the market estimate of $72.78 billion.

Driven by better-than-expected results and guidance, NVIDIA’s stock soared over 4% in after-hours trading, with gains narrowing to 0.87% as of 6:50 Beijing time.

For the full year, NVIDIA achieved revenue of $215.9 billion in FY2026, a 65% increase, setting a new record.

In Q4, diluted earnings per share (EPS) under U.S. GAAP and non-GAAP were $1.76 and $1.62, respectively. For FY2026, EPS under GAAP and non-GAAP were $4.90 and $4.77.

In Q4, NVIDIA’s GAAP and non-GAAP gross margins were 75.0% and 75.2%; for FY2026, they were 71.1% and 71.3%.

NVIDIA’s other traditional businesses also showed resilience, with gaming revenue in Q4 reaching $3.7 billion, up 47% year-over-year, mainly due to strong demand for Blackwell; however, it declined 13% from the previous quarter as channel inventories naturally decreased after holiday season demand. Full-year gaming revenue grew 41%, reaching a record $16 billion.

In FY2026, NVIDIA returned $41.1 billion to shareholders through stock buybacks and dividends. As of the end of Q4, the company still had $58.5 billion remaining in stock repurchase authorization.

Some analysts believe that with NVIDIA’s earnings and guidance exceeding expectations, concerns about the “AI bubble” spreading in recent weeks may ease, and demand for NVIDIA’s AI chips remains robust.

Jensen Huang: Demand is Growing Exponentially

NVIDIA’s largest GPU customers include nearly all major tech giants, such as Microsoft, Amazon, Google, Meta, and Oracle. In recent years, these giants have accelerated building AI models and computing clusters, leading to explosive growth in demand for NVIDIA’s high-end GPUs.

Founder and CEO Jensen Huang stated in the earnings call, “Computing demand is growing exponentially—the turning point for Agentic AI has arrived. Companies are rapidly investing in AI computing—these capabilities are the driving force behind the AI industry revolution and future development.”

NVIDIA CFO Colette Kress said the company has strategically secured inventory and capacity to meet demand in the coming quarters; Q4 data center revenue was driven by accelerated computing and AI; channel inventories are naturally adjusting, causing a 13% quarter-over-quarter decline in gaming revenue; supply constraints are expected to negatively impact gaming business in Q1 FY2027 and beyond.

Later, Huang expressed confidence during an analyst call that, amid the rise of autonomous AI, customer cash flow will continue to grow.

He also mentioned that the company will expand its product line using GROQ’s new technology.

He added, “We believe we are very close to reaching a partnership agreement with OpenAI.”

Kress noted that the Grace Blackwell system accounted for two-thirds of data center revenue in Q4. Capital expenditure plans of large cloud computing companies are approaching $700 billion.

He said, “We will surpass the previous $500 billion target. Supply will meet demand through next year. Autonomous and physical AI applications are beginning to drive financial performance.”

Kress also expects data center revenue to grow sequentially throughout 2026.

Tech Insights from Dongcai·Key Takeaways

(Source: Securities Times)