Nvidia Earnings Signal Sustained Market Momentum as Data Centers Power Record Fiscal 2026 Results

Mo. Basuony

Published: February 25, 2026 7:12 PM ET

Nvidia Earnings Signal Sustained Market Momentum as Data Centers Power Record Fiscal 2026 Results

Why this matters now: The latest nvidia earnings underline a continued shift in corporate revenue mix and market expectations — record quarterly and fiscal revenue, a data-center business growing at 75% year-over-year, and changes to how the company measures non-GAAP results will all reshape comparability and investor focus into fiscal 2027. Here’s the part that matters: the company is converting AI infrastructure demand into outsized cash and returns to shareholders.

Nvidia Earnings: momentum, margins and what the numbers imply

Quarter and fiscal totals reinforce a performance-driven narrative. For the fourth quarter ended January 25, 2026, the company recorded $68. 1 billion in revenue, a rise of 20% from the prior quarter and 73% year-over-year. The company's reported quarterly revenue is also cited as $68. 13 billion in some coverage, above a reported $66. 2 billion consensus figure. For the full fiscal 2026 year, revenue totaled $215. 9 billion, up 65% from a year earlier. Gross margins remained high: GAAP and non-GAAP gross margins for the quarter were 75. 0% and 75. 2%, and for fiscal 2026 were 71. 1% and 71. 3%.

Quarterly and annual profit metrics and shareholder returns

Earnings per diluted share for the quarter were listed as $1. 76 (GAAP) and $1. 62 (non-GAAP); the $1. 62 figure is also framed as a beat versus a $1. 53 estimate in market commentary. For fiscal 2026, GAAP and non-GAAP earnings per diluted share were $4. 90 and $4. 77. The company posted an enormous total profit for the fiscal year—$120 billion. During fiscal 2026 the company returned $41. 1 billion to shareholders through share repurchases and cash dividends, and at the end of the fourth quarter had $58. 5 billion remaining under its share repurchase authorization. The next quarterly cash dividend was set at $0. 01 per share payable on April 1, 2026 to shareholders of record on March 11, 2026.

Data-center dominance, AI deals and heightened scrutiny

The data-center business remains the dominant revenue engine: it grew 75% year-over-year to $62. 3 billion in the quarter and supplies the vast majority of the company's revenue. That commercial concentration and the scale of AI-related deals have attracted scrutiny. Observers note complex, circular deal dynamics with some AI firms that combine investment and product purchase relationships. One marquee proposal for a $100 billion investment into a major AI partner fell through earlier this month; instead the company will reportedly invest $30 billion into that partner as the partner seeks a public listing later this year at an indicated valuation around $730 billion. On the earnings call, leadership said work toward a partnership agreement with that AI partner continues and that they believe they are close. If you're wondering why this keeps coming up, it’s because these deals affect both demand for compute and how revenue flows through the ecosystem.

Accounting adjustments, tax outlook and investor communications

Starting in the first quarter of fiscal 2027, the company will include stock-based compensation expense in its non-GAAP financial measures; the firm describes stock-based compensation as a foundational component of its program to attract and retain world-class talent. To help comparability, the company provides non-GAAP measures—non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income (expense), net, non-GAAP net income and non-GAAP earnings per diluted share, and free cash flow—and shows reconciliations of GAAP to non-GAAP. The reconciliations for fiscal years 2025 and 2026 are disclosed to adjust related GAAP financial measures to exclude stock-based compensation expense, acquisition-related and other costs, other gains/losses; the remainder of that reconciliation text is unclear in the provided context. For the full year fiscal 2027, GAAP and non-GAAP tax rates are expected to be between 17. 0% and 19. 0%, excluding any discrete items and material changes to the company's tax environment.

Market reaction, streak of beats and next signals

Markets have taken cues from this performance. The company has exceeded Wall Street expectations every quarter for multiple years, including across the 2024 and 2025 fiscal years, extending that streak with this release. Shares reacted intra-day: they rose by around 3% in after-hours trading immediately following the earnings report before gains narrowed to less than 1% as the day progressed. Management scheduled a conference call with analysts and investors to discuss the fourth quarter and fiscal 2026 results at 2 p. m. Pacific time (5 p. m. Eastern time) on the day of the announcement; a live webcast in listen-only mode will be accessible on the company investor relations website and the webcast will be recorded and available for replay until the company’s conference call to discuss its financial results for its first quarter of fiscal 2027. CFO commentary on the quarter is available (location unspecified in the provided context).

What's easy to miss is that the change in non-GAAP treatment of stock-based compensation will alter comparability between periods even as the company continues to publish reconciliations.

Record quarterly revenue: $68. 1 billion for Q4 (also shown as $68. 13 billion in market summaries).
Fiscal 2026 revenue: $215. 9 billion; fiscal profit noted as $120 billion.
Data-center revenue up 75% YoY to $62. 3 billion.
Quarterly EPS: $1. 76 GAAP, $1. 62 non-GAAP (beat versus a $1. 53 estimate cited in market commentary).
Returned $41. 1 billion to shareholders in fiscal 2026; $58. 5 billion repurchase capacity remaining.
Dividend: $0. 01 per share payable April 1, 2026; record date March 11, 2026.

Key takeaways:

Implication: Strong data-center demand is translating into outsized revenue and cash generation that underpins buybacks and a small cash dividend.
Affected groups: Large enterprise cloud and AI customers, investors watching profitability and buybacks, and the company’s stock-compensated workforce given upcoming non-GAAP treatment changes.
Next signals that will confirm momentum: how fiscal 2027 guidance (including tax expectations) holds up, the competitive trajectory of data-center unit sales, and the company’s announced partnerships and investments with AI partners.

Micro timeline: Q4 ended January 25, 2026; the fiscal 2026 year produced $215. 9 billion in revenue and $120 billion in profit; the company set the dividend payable April 1, 2026 with record date March 11, 2026.

The real question now is whether the company can sustain the same growth rate in data-center revenue while integrating major partnership investments and a revised non-GAAP presentation into investor expectations. Recent updates indicate some details — including the full outlook for the first quarter of fiscal 2027 — will be provided in the company’s formal outlook and conference call materials; finer points may evolve.