Nvidia Stock Drops 5% Despite Record Q4 as Tech Slide on AI Spending Fears
Nvidia Stock fell 5% even after NVIDIA posted record revenue for the fourth quarter and for fiscal 2026, a reaction that tracked a broader slide in tech stocks amid renewed concerns over AI-related spending. The company’s quarterly results and leadership commentary underline strong AI demand even as the market trimmed expectations.
Nvidia Stock: market reaction and context
Nvidia stock sank 5% despite better-than-expected results, while tech stocks more broadly slid as AI spending fears returned to investor sentiment. The contrast between robust company fundamentals and near-term market caution framed investor reaction following the results release.
Quarterly and fiscal revenue highlights
NVIDIA (NASDAQ: NVDA) reported record revenue for the fourth quarter ended January 25, 2026, of $68. 1 billion, a 20% increase from the previous quarter and a 73% rise from a year earlier. For fiscal 2026, revenue totaled $215. 9 billion, up 65% from the prior fiscal year.
Margins and earnings per share
For the quarter, GAAP and non-GAAP gross margins were 75. 0% and 75. 2%, respectively. For fiscal 2026, GAAP and non-GAAP gross margins were 71. 1% and 71. 3%, respectively. GAAP and non-GAAP earnings per diluted share for the quarter were $1. 76 and $1. 62. For fiscal 2026, GAAP and non-GAAP earnings per diluted share were $4. 90 and $4. 77.
Leadership view: AI demand and product references
Founder and CEO Jensen Huang framed the results around accelerating AI demand, saying the agentic AI inflection point has arrived and that enterprise adoption of agents is surging. He referenced Grace Blackwell with NVLink as the current leader in inference, delivering an order-of-magnitude lower cost per token, and noted that Vera Rubin will extend that leadership further. Huang also described customers as racing to invest in AI compute as the factories powering the AI industrial revolution.
Capital return, dividend and buyback status
During fiscal 2026, the company returned $41. 1 billion to shareholders through share repurchases and cash dividends. As of the end of the fourth quarter, NVIDIA had $58. 5 billion remaining under its share repurchase authorization. The next quarterly cash dividend will be $0. 01 per share, payable on April 1, 2026, to shareholders of record on March 11, 2026.
Conference call, guidance and accounting changes
NVIDIA scheduled a conference call to discuss fourth-quarter and fiscal 2026 financial results and prospects for today at 2 p. m. Pacific time (5 p. m. Eastern time). A listen-only webcast will be accessible on the company’s investor relations website and will be recorded and available for replay until the company’s conference call to discuss its first quarter of fiscal 2027 financial results. The company will begin including stock-based compensation expense in non-GAAP financial measures starting in the first quarter of fiscal 2027, noting stock-based compensation is a foundational component of its compensation program.
Outlook and non-GAAP reconciliations
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. The company uses non-GAAP measures to supplement its condensed consolidated financial statements and has presented reconciliations of GAAP to non-GAAP measures; the reconciliations for fiscal years 2025 and 2026 adjust related GAAP financial measures to exclude stock-based compensation expense, acquisition-related and other costs, and other items — further detail is unclear in the provided context.
Additional note: Client Challenge listing
The provided context also included an independent title entry labeled "Client Challenge. " No further details about that item were included in the context provided.
