Nvda Financial Results: nvda Reports Record Revenue, Market Reaction Puzzles

nvda announced record revenue for the fourth quarter ended January 25, 2026, of $68. 1 billion, up 20% from the previous quarter and up 73% from a year ago, and said fiscal 2026 revenue was $215. 9 billion, up 65% from a year ago. The results, and a guidance gap that exceeded consensus, have prompted debate even as company executives emphasized accelerating AI demand.

Nvda quarterly results and margins

The company reported GAAP and non-GAAP gross margins for the quarter of 75. 0% and 75. 2%, respectively, and for fiscal 2026 GAAP and non-GAAP gross margins of 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.

Founder and CEO Jensen Huang said computing demand is growing exponentially and that the agentic AI inflection point has arrived. He singled out Grace Blackwell with NVLink as "the king of inference today, " saying that NVLink delivers an order-of-magnitude lower cost per token, and said Vera Rubin will extend that leadership further. Huang added that enterprise adoption of agents is skyrocketing and that customers are racing to invest in AI compute, the factories powering the AI industrial revolution and their future growth.

Earnings, revenue and shareholder returns

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, the company had $58. 5 billion remaining under its share repurchase authorization. it 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.

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.

Conference call timing and webcast

it will conduct a conference call with analysts and investors to discuss fourth-quarter and fiscal 2026 financial results and current financial prospects today at 2 p. m. Pacific time (5 p. m. Eastern time). A live webcast in listen-only mode will be accessible on the company’s investor relations website; 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 by Colette Kress is available on the company’s investor site.

Market debate and guidance surprise

nvda guided the current quarter roughly $6 billion above consensus estimates, yet the stock was down in Thursday morning trading, prompting market discussion. Visible Alpha head of TMT research Melissa Otto and Laffer Tengler Investments CEO and CIO Nancy Tengler joined Opening Bid host Brian Sozzi to debate whether nvda’s mid-70% gross margins and strong fundamentals were already priced in and what would spark a fresh catalyst.

The host expressed surprise at the stock reaction given a guidance gap he described as roughly $6 billion ahead of consensus — an amount some companies generate in a full year. In their exchange they noted a Q1 guide range of 77 to 79 billion, with a midpoint around 78 billion, versus a consensus of 72. 4 billion; the panel said gross margin was remaining at the mid-70s level and questioned whether that margin profile still delivered incremental alpha.

Nancy Tengler said she respectfully disagreed with the view that the company lacks upside potential, likening the current pullback to a past deep selloff and noting that there was an earlier opportunity to buy the stock at just over $100 a share before it ran up and later pulled back. She cited 60-plus percent earnings growth, a valuation she described as trading at a P below 25 times next year’s earnings, and said that China has not fully participated yet. She pointed to Sovereign as "just getting started, " saying Sovereign posted $30 billion in sovereign revenues and that was roughly three times year-over-year.

Tengler said hedge funds began putting pressure on names in the fall and that she expects a return to outperformance given what she described as a tremendous amount of growth for the foreseeable future. She summarized the industry view as "compute equals inference equals revenues, " and said hyperscalers are signaling they lack capacity — one firm's CAPEX is another firm's revenue source, and that dynamic favors NVIDIA and its leadership.

Non-GAAP measures and reconciliations

To supplement GAAP results, the company uses non-GAAP measures including 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. 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; the context for the final listed adjustments is unclear in the provided context.

The company also said that 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 noted "NVIDIA’s outlook for the first quarter of fiscal 2027 is as follows: " but the specific first-quarter outlook details are unclear in the provided context.

Close: The company reported strong top-line growth and margin levels, detailed shareholder returns and a small quarterly dividend, outlined a change to non-GAAP reporting beginning in fiscal 2027, and faces market debate after a guidance beat of roughly $6 billion versus consensus.