Nvidia Stock: nvidia stock holds as company posts record $215.9bn
nvidia stock remained under pressure even as the company reported record fiscal 2026 revenue of $215. 9 billion. The fourth quarter, ended January 25, 2026, produced revenue of $68. 1 billion, up 20% from the prior quarter and up 73% from a year earlier.
Fourth-quarter and fiscal results
fourth-quarter revenue was $68. 1 billion for the period ended January 25, 2026. That quarterly figure rose 20% from the previous quarter and 73% from the same period a year earlier. For the full fiscal 2026 year, revenue was $215. 9 billion, a 65% increase from a year ago. The firm beat analysts' forecasts as sales for the last three months of its financial year jumped by 73% compared to 12 months earlier.
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. For the quarter, GAAP and non-GAAP earnings per diluted share were $1. 76 and $1. 62. For fiscal 2026, GAAP and non-GAAP earnings per diluted share were $4. 90 and $4. 77.
Investor returns and dividend plan
During fiscal 2026, the company returned $41. 1 billion to shareholders in the form of shares repurchased and cash dividends. At the end of the fourth quarter, it had $58. 5 billion remaining under its share repurchase authorization. The company will pay its next quarterly cash dividend of $0. 01 per share on April 1, 2026, to all shareholders of record on March 11, 2026.
Nvidia Stock market reaction
Despite the record figures, shares fell as the results failed to fully dazzle some investors, and scepticism remains about how much money is being spent on AI technology. Investors have scrutinised the firm's expanding web of deals and questioned whether certain investments may be clouding perceptions of how robust AI demand really is, with critics raising the spectre of "circular financing" deals.
CEO comments and product notes
Jensen Huang said, "Computing demand is growing exponentially. Our customers are racing to invest in AI compute - the factories powering the AI industrial revolution and their future growth. " In a fuller statement he added, "Computing demand is growing exponentially — the agentic AI inflection point has arrived. Grace Blackwell with NVLink is the king of inference today — delivering an order-of-magnitude lower cost per token — and Vera Rubin will extend that leadership even further. Enterprise adoption of agents is skyrocketing. Our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth. "
Geopolitics and China chips
The company has been caught in a geopolitical tug-of-war between the US and China. The outlook released by the company on Wednesday did not include expectations about chip revenue in China. Last month, the Trump administration began allowing the sale of the company’s H200 chips, described as the firm's second-most advanced type, to Chinese customers under certain conditions. This week, a US Commerce Department official told lawmakers that none of those chips have yet been sold to Chinese customers.
AI customers and new initiatives
As a central player in the buildout of AI infrastructure, the company provides sophisticated chips to leading AI model developers including OpenAI and Meta. It has also set out plans in recent weeks to generate demand with new technologies of its own. Last month at the CES technology trade show in Las Vegas, Jensen Huang unveiled a new tech platform for self-driving cars and said the open-source AI model called "Alpamayo" will bring reasoning to autonomous vehicles.
Communication and non-GAAP measures
it uses non-GAAP measures to supplement condensed consolidated financial statements presented in accordance with GAAP. These non-GAAP measures include 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, non-GAAP net income, or earnings, per diluted share, and free cash flow. The reconciliations for fiscal years 2025 and 2026 adjust the related GAAP financial measures to exclude stock-based compensation expense, acquisition-related and other costs, and other gains and losses.
Outlook and governance changes
Beginning in the first quarter of fiscal 2027, the company will include stock-based compensation expense in non-GAAP financial measures, noting that stock-based compensation is a foundational component of its compensation program to attract and retain world-class talent. 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. it will conduct a conference call with analysts and investors to discuss its fourth quarter and fiscal 2026 financial results and current financial prospects today at 2 p. m. Pacific time (5 p. m. Eastern time).
Market context and analyst views
Market observers noted the firm is the world's most valuable publicly traded company, with a stock market value of around $4. 8 trillion. Gene Munster, manager partner at Deepwater Asset Management, said the AI buildout was likely to continue for a long time and wrote on a social media platform on Wednesday, "AI is accelerating faster than people not using these tools can grasp. "
Shares fell even as the company reported record annual revenue of $215. 9 billion (listed in one report as £159. 1 billion), underscoring a disconnect between headline financial strength and investor expectations.
Closing: The company posted record revenue and strong margins for fiscal 2026 and the fourth quarter, announced continued shareholder returns and a small upcoming dividend, outlined changes to non-GAAP reporting, and faces investor scrutiny and geopolitical uncertainty as it expands its product line and AI infrastructure role.
