Nvda posts record $68.1 billion quarter as nvda guidance tops estimates by $6 billion

NVIDIA reported record revenue of $68. 1 billion for the fourth quarter ended January 25, 2026, and $215. 9 billion for fiscal 2026, while the company’s current-quarter guidance came in roughly $6 billion above consensus — a gap that coincided with a weaker stock reaction. The mixed market response has focused attention on margins, capital returns and the company’s outlook as investors digest large-scale AI demand.

Quarter and fiscal results: revenue, margins and earnings per share

For the quarter ended January 25, 2026, NVIDIA posted revenue of $68. 1 billion, up 20% from the prior quarter and up 73% from a year earlier. For fiscal 2026, revenue totaled $215. 9 billion, up 65% from a year ago. GAAP and non-GAAP gross margins for the quarter 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, respectively, while for fiscal 2026 GAAP and non-GAAP earnings per diluted share were $4. 90 and $4. 77, respectively.

Jensen Huang frames an AI inflection point with Grace Blackwell and Vera Rubin

Jensen Huang, founder and CEO of NVIDIA, said computing demand is growing exponentially and called the agentic AI inflection point arrived. He pointed to Grace Blackwell with NVLink as “the king of inference today, ” saying that Blackwell is delivering an order-of-magnitude lower cost per token, and that 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, which he described as the factories powering the AI industrial revolution and their future growth.

Nvda guidance, market reaction and an analyst debate

The company’s current-quarter guidance was roughly $6 billion above consensus estimates, but the stock was down in Thursday morning trading. Melissa Otto, head of TMT research at Visible Alpha, and Nancy Tengler, CEO and CIO of Laffer Tengler Investments, joined Brian Sozzi to debate whether NVIDIA’s mid-70% gross margins and strong fundamentals were already priced in, and what would be required to spark a fresh catalyst.

Consensus, guide ranges and the mid-70s margin question

Discussion during the debate referenced Visible Alpha data showing a Q1 guide in the range of 77 to 79 billion, with consensus at 72. 4 billion. Panelists noted that the mid-70s gross-margin level is already apparent in the guidance and that, looking out across the rest of the year, gross margin was expected to remain in that mid-70s band — a factor some argued left less room for an upside surprise in fundamentals.

Nancy Tengler’s view on valuation, China and sovereign revenue

Nancy Tengler said she respectfully disagreed with the bearish read and noted that past selloffs presented buying opportunities, recalling that NVIDIA could be bought at just over $100 a share previously. She cited more than 60% earnings growth and said the stock was trading at a price-to-earnings multiple below 25 times next year’s earnings. Tengler said China has not yet played a full role, that sovereign demand is only getting started, and cited a figure of $30 billion in sovereign revenues that she described as roughly three times year-over-year. She also said hedge funds began putting pressure on names like this in the fall and expressed the expectation that NVIDIA will return to outperformance, arguing that compute equals inference equals revenues and noting hyper scalers report not having enough capacity. She summarized that one party’s capital expenditure becomes another party’s revenue source, naming NVIDIA and Jensen in that context.

Capital returns, dividend timing and accounting changes for fiscal 2027

During fiscal 2026, NVIDIA returned $41. 1 billion to shareholders in the form of shares repurchased and cash dividends, and at the end of the fourth quarter had $58. 5 billion remaining under its share repurchase authorization. NVIDIA will pay its next quarterly cash dividend of $0. 01 per share on April 1, 2026, to shareholders of record on March 11, 2026. Beginning in the first quarter of fiscal 2027, NVIDIA will include stock-based compensation expense in non-GAAP financial measures, noting that stock-based compensation is a foundational component of NVIDIA’s compensation program to attract and retain world-class talent.

Outlook, tax guidance and investor materials

NVIDIA said its outlook for the first quarter of fiscal 2027 was presented but the specific figures are 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 NVIDIA’s tax environment. Colette Kress, executive vice president and chief financial officer, provided commentary on the quarter. The company scheduled a conference call with analysts and investors to discuss the quarter and fiscal 2026 results at 2 p. m. Pacific time (5 p. m. Eastern time), and said a live webcast would be accessible on its investor relations site and recorded for replay until the company’s first-quarter fiscal 2027 results call.

Non-GAAP measures and reconciliations

To supplement condensed consolidated financial statements presented in accordance with GAAP, NVIDIA 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 or earnings per diluted share, and free cash flow. 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 gains and losses.