Key Highlights
- Q4 adjusted EPS reached $1.62, surpassing Wall Street’s $1.53 consensus forecast
- Quarterly revenue climbed to $68.13 billion, representing a 73% increase compared to last year
- Data center division posted 75% growth to reach $62.3 billion, fueled by artificial intelligence processor demand
- First-quarter revenue projection of $78 billion significantly topped analyst expectations of $72.6 billion
- Initial Vera Rubin chip samples delivered to partners this week, full-scale manufacturing planned for second half of 2026
The graphics chip manufacturer delivered impressive fiscal fourth-quarter financial results Wednesday evening, exceeding Wall Street projections across key metrics.
The company reported adjusted earnings of $1.62 per share, beating analyst consensus of $1.53. Total quarterly revenue hit $68.13 billion, surpassing the $66.21 billion forecast and marking a 73% jump from $39.3 billion reported in the year-ago period.
The company’s net income approximately doubled to $43 billion, translating to $1.76 per share, versus $22.1 billion, or 89 cents per share, during the corresponding quarter of the previous fiscal year.
Shares climbed roughly 3.6% during extended trading hours after the earnings announcement, building on the stock’s 5% advance year-to-date in 2026.
The data center division, representing more than 91% of the company’s overall revenue, posted a 75% year-over-year increase to $62.3 billion. This performance exceeded analyst projections of $60.69 billion.
Major cloud computing providers — including Alphabet, Amazon, Meta, and Microsoft — continued as the company’s primary customer base, generating slightly more than 50% of data center revenue.
Network Infrastructure Sales Accelerate
Networking products emerged as a standout performer within the data center business. Revenue from networking components reached $10.98 billion, surging 263% year-over-year. This dramatic increase reflects robust appetite for Nvidia’s NVLink interconnect technology and Spectrum-X Ethernet switching products, including fresh contracts with Meta.
Gross margin landed at 75.2%, modestly exceeding the 75% consensus estimate.
The gaming segment grew 47% year-over-year to $3.7 billion, though sequential revenue declined 13% from the previous quarter. CFO Colette Kress indicated that supply chain limitations will likely pressure the gaming division through fiscal 2027 and potentially longer.
First Quarter Outlook Exceeds Projections
Management provided first-quarter revenue guidance of $78 billion, with a 2% variance range. Wall Street analysts had anticipated $72.6 billion. The company clarified that this forecast excludes any potential data center revenue originating from China.
The semiconductor leader is diversifying its manufacturing footprint beyond Asia into North American and Latin American territories. Blackwell GPU production has commenced at TSMC’s fabrication facilities in Arizona, while certain rack-scale system assembly operations are conducted at a Foxconn facility in Mexico.
First Vera Rubin engineering samples were distributed to select customers earlier this week. This next-generation platform, succeeding Grace Blackwell, promises tenfold improvement in performance-per-watt efficiency. Volume shipments remain scheduled for the latter half of 2026.
The company’s shares have gained 5% in 2026, outpacing the Nasdaq index, which has declined 0.4% during the same timeframe.
