NVIDIA Q4 Earnings Crush Estimates, Revenues Increase 73% Y/Y

NVIDIA Corporation NVDA reported solid fourth-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and witnessed strong year-over-year growth.

Fourth-quarter non-GAAP earnings of $1.62 per share surpassed the Zacks Consensus Estimate by 6.58%. The reported figure soared 82% year over year and 25% sequentially, mainly driven by higher revenues and effective cost management.

NVIDIA’s fiscal fourth-quarter revenues climbed 73% year over year and 20% sequentially to $68.13 billion. The top line beat the consensus mark by 3.9%. Robust growth across all end markets drove NVDA’s fourth-quarter revenues to a record level.

NVIDIA's Segmental Details

NVIDIA reports revenues under two segments — Graphics and Compute & Networking.

The Graphics segment includes GeForce GPUs for gaming and personal computers, the GeForce NOW game-streaming service and related infrastructure. The segment also offers solutions for gaming platforms, Quadro GPUs for enterprise design, GRID software for cloud-based visual and virtual computing, as well as automotive platforms for infotainment systems. Graphics accounted for 9.5% of fiscal fourth-quarter revenues. The segment’s top line rose 97% year over year and 6% sequentially to $6.48 billion.

Compute & Networking represented 90.5% of fiscal fourth-quarter revenues. The segment comprises the Data Center platforms and systems for artificial intelligence (AI), high-performance computing and accelerated computing. Compute & Networking revenues soared 71% year over year and 21% sequentially to $61.65 billion.

Top-Line Details of NVIDIA’s Market Platform

Based on the market platform, revenues from Data Center (91.5% of revenues) jumped 75% year over year and 22% from the previous quarter to $62.31 billion. This robust rise was mainly driven by higher shipments of the Blackwell GPU computing platforms that are used for the training and inference of large language models, recommendation engines and generative AI applications.

Gaming revenues increased 47% year over year but declined 13% sequentially to $3.73 billion, accounting for 5.5% of the total revenues. The year-over-year jump reflects strong demand from gamers, creators and AI enthusiasts. Increased demand for Blackwell products also aided the segment’s sales growth during the reported quarter. However, the sequential decline was due to moderate inventory levels across its channel partners following strong holiday-season demand.

Professional Visualization revenues (1.9% of revenues) increased 159% year over year and 74% sequentially to $1.32 billion, driven by exceptional demand for Blackwell. Automotive sales (0.9% of revenues) in the reported quarter totaled $604 million, up 6% on a year-over-year basis and 2% sequentially. The continued adoption of self-driving platforms mainly drove Automotive revenues higher. OEM and Other revenues (0.2% of revenues) were up 28% year over year but down 7% sequentially to $161 million.

NVDA’s Operating Details

NVIDIA’s non-GAAP gross margin of 75.2% reflects an improvement of 170 basis points (bps) year over year, driven by lower inventory provisions. Sequentially, the non-GAAP gross margin jumped 160 bps as Blackwell ramped with an improved mix and cost structure.

Non-GAAP operating expenses increased 51% year over year and 21% sequentially to $5.1 billion. The rise was primarily due to higher compensation and benefit expenses due to employee growth and compensation increases. As a percentage of total revenues, non-GAAP operating expenses declined to 7.5% from 8.6% in the year-ago quarter, but increased 10 bps from the previous quarter’s 7.4%.

The non-GAAP operating income jumped 81% year over year and 22% sequentially to $46.12 billion. The non-GAAP operating margin of 67.7% increased 280 bps year over year and 150 bps sequentially. NVIDIA’s non-GAAP net income margin of 58% for the fourth quarter expanded 190 bps year over year and 230 bps sequentially.

NVIDIA’s Balance Sheet and Cash Flow

As of Jan. 25, 2026, NVDA’s cash, cash equivalents and marketable securities totaled $62.6 billion, up from $60.6 billion as of Oct. 26, 2025. As of Jan. 25, 2026, the total long-term debt was $7.47 billion, flat when compared with long-term debt as of Oct. 26, 2026.

NVIDIA generated $36.19 billion in operating cash flow during the fourth quarter and $102.72 billion in fiscal 2026. NVIDIA generated free cash flow of $34.9 billion in the fourth quarter and $96.58 billion in fiscal 2026.

In the fiscal fourth quarter, the company returned $243 million to its shareholders through dividend payouts and repurchased stocks worth $3.82 billion. In fiscal 2026, NVIDIA paid $974 million in dividends and bought back shares worth $40.09 billion.

NVIDIA Issues Q1 2027 Guidance

For the first quarter of fiscal 2027, NVIDIA anticipates revenues of $78 billion (+/-2%), higher than the Zacks Consensus Estimate of $69.25 billion.

The non-GAAP gross margin is projected to be 75% (+/-50 bps). Non-GAAP operating expenses are estimated at $7.5 billion.

NVDA’s Zacks Rank and Other Stocks to Consider

Currently, NVIDIA carries a Zacks Rank #2 (Buy).

Analog Devices ADI, Amphenol APH and Monolithic Power Systems MPWR are some other top-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Analog Devices sports a Zacks Rank #1 (Strong Buy), while Amphenol and Monolithic Power Systems carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings has moved upward by 11.4% over the past seven days to $11.10 per share, implying an increase of 42.5% year over year. Analog Devices shares have climbed 54.1% in trailing 12 months.

The Zacks Consensus Estimate for Amphenol’s full-year 2026 earnings is pegged at $4.32 per share, revised upward by 2 cents over the past 30 days and suggests a year-over-year jump of 29.3%. Amphenol shares have soared 131.9% over the past year.

The Zacks Consensus Estimate for Monolithic Power Systems’ fiscal 2026 earnings has been revised upward to $21.63 per share from $21.07 over the past 30 days. Monolithic Power Systems shares have surged 83.5% over the past year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research