Key Takeaways
- NVIDIA (NVDA) reported record Q3 fiscal year 2026 revenue of $57.0 billion, significantly beating analyst expectations of around $54.8-$55.4 billion, and issued a blowout Q4 FY26 revenue forecast of $65.0 billion (±2%), well above the $61.3-$62 billion anticipated.
- Data Center revenue surged to $51.2 billion, driven by "off the charts" demand for Blackwell GPUs and the declaration from CEO Jensen Huang that all cloud GPUs are "completely sold out," emphasizing that AI demand is "accelerating everywhere, all at once."
- The robust financial performance and optimistic outlook ignited a late-day tech rally, lifting the NASDAQ 100 ETF and S&P 500, as investors recalibrated AI-growth expectations and largely shrugged off recent market volatility.
- NVIDIA's stock increased by 3-5% in after-hours trading following the announcement, despite recent concerns about an AI bubble, with the company's net income of $31.91 billion now exceeding the full-year sales of competitors like Intel (INTC) or AMD (AMD).
- The company noted that H20 sales were insignificant in the third quarter, while Gaming revenue saw a 30% increase to $4.27 billion, supported by strong demand for its Blackwell Ultra architecture, which is now NVIDIA's leading architecture.
NVIDIA (NVDA) delivered a blockbuster third quarter for fiscal year 2026, reporting record revenue of $57.0 billion, a substantial beat against Wall Street's consensus estimates of approximately $54.8 billion. This strong performance was complemented by an impressive outlook for the fourth quarter, with the company forecasting revenue of roughly $65.0 billion (±2%), significantly surpassing analyst expectations of $61.3 billion.
The chip giant's success was largely propelled by its Data Center segment, which saw revenue surge to $51.2 billion. CEO Jensen Huang underscored the insatiable demand for AI infrastructure, stating that "Blackwell sales are off the charts, and cloud GPUs are sold out," and that AI demand is "accelerating everywhere, all at once." This strong demand for NVIDIA's cutting-edge AI chips, including its Blackwell and Hopper GPUs, continues to drive the company's growth.
Financially, NVIDIA reported adjusted earnings per share (EPS) of $1.30, outperforming the $1.25-$1.26 expected by analysts. The company's net income reached $31.91 billion, a figure that now surpasses the full-year sales of major competitors such as Intel (INTC) or AMD (AMD). Gross margins also remained robust at 73.4% GAAP and 73.6% non-GAAP, beating estimates.
The positive earnings report and optimistic forecast ignited a significant late-day tech rally, with NVIDIA's stock climbing 3-5% in after-hours trading. The broader market also reacted favorably, with the NASDAQ 100 ETF and S&P 500 experiencing a lift as investors recalibrated their AI-growth expectations. This performance helped to counter recent market anxieties about a potential AI bubble, reinforcing confidence in the sustained demand for AI technologies.
Beyond Data Center, NVIDIA's Gaming segment also showed strength, with revenue increasing to $4.27 billion, a 30% rise from a year ago. The company highlighted strong demand for its Blackwell Ultra architecture, which has become its leading architecture in the gaming sector. Additionally, NVIDIA announced a substantial $62 billion buyback war chest, signaling continued confidence in its financial strength and future prospects. The company also clarified that H20 sales were "insignificant" in the third quarter.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.