Nvidia Stock Sinks After Results Fail to Dazzle Despite Record $215.9bn Fiscal Revenue
NVIDIA posted record fiscal 2026 revenue of $215. 9 billion and fourth-quarter sales of $68. 1 billion, yet nvidia stock fell as investors appeared underwhelmed by the broader outlook. The split between explosive AI-driven demand and investor skepticism, coupled with geopolitical and accounting questions, has created a complex backdrop for the company’s next moves.
Nvidia Stock Reaction and Market Value
Shares slipped in the wake of the earnings release, reflecting the market’s muted response to what the company described as a blockbuster year. The firm remains the world’s most valuable publicly traded company with a market capitalization of around $4. 8 trillion, but the immediate reaction shows that record revenue did not erase investor concerns.
Fourth Quarter and Fiscal 2026 Financials
NVIDIA reported fourth-quarter revenue of $68. 1 billion for the period ended January 25, 2026, a rise of 20% from the prior quarter and 73% year-over-year. For fiscal 2026, revenue totaled $215. 9 billion, up 65% from a year earlier. GAAP and non-GAAP gross margins for the quarter were 75. 0% and 75. 2%, respectively, while fiscal 2026 margins were 71. 1% (GAAP) and 71. 3% (non-GAAP).
Profitability metrics also improved: GAAP and non-GAAP earnings per diluted share for the quarter were $1. 76 and $1. 62, and for fiscal 2026 were $4. 90 and $4. 77, respectively. The company emphasized use of non-GAAP measures and provided reconciliations to GAAP in its financial supplements.
Shareholder Returns, Dividends and Repurchase Authority
During fiscal 2026 NVIDIA returned $41. 1 billion to shareholders through share repurchases and cash dividends. At the end of the fourth quarter the company reported $58. 5 billion remaining under its share repurchase authorization. NVIDIA will pay a quarterly cash dividend of $0. 01 per share on April 1, 2026, to shareholders of record on March 11, 2026.
Management also announced a change in non-GAAP presentation: beginning in the first quarter of fiscal 2027, stock-based compensation expense will be included in non-GAAP financial measures. The company framed stock-based compensation as a foundational component of its compensation program to attract and retain talent.
Chip Sales to China and Regulatory Oversight
U. S. policy developments have begun to shift access to advanced chips. The previous administration authorized sales of H200 chips—described as NVIDIA’s second-most advanced type—to Chinese customers under certain conditions last month. However, a U. S. Commerce Department official informed lawmakers this week that none of those H200 chips have yet been sold to Chinese customers. The company’s outlook released with the results did not include expectations about chip revenue in China.
Product Strategy: Alphamayo, Automotive Platform and AI Infrastructure
Management underscored its role in the AI infrastructure build-out, supplying chips to leading AI model developers including OpenAI and Meta. At CES in Las Vegas the company unveiled a new technology platform for self-driving cars and introduced an open-source AI model called "Alpamayo, " positioned to bring reasoning to autonomous vehicles. Executives framed these moves as efforts to generate additional demand beyond chip sales.
Executive Commentary and Market Context
Founder and CEO Jensen Huang described an "agentic AI inflection point, " saying enterprise adoption of agents is accelerating and customers are racing to invest in AI compute—the "factories powering the AI industrial revolution, " in his words. The CEO also highlighted specific product leadership claims for Grace Blackwell with NVLink and a forthcoming product, Vera Rubin, as drivers of cost-efficient inference.
Outside investors offered contrasting takes. Gene Munster, managing partner at Deepwater Asset Management, wrote on the social platform X that "AI is accelerating faster than people not using these tools can grasp, " signaling confidence in extended demand. At the same time, some investors have raised concerns about the company’s expanding web of deals, warning that investments by NVIDIA in other companies could create "circular financing" that clouds the true strength of AI demand.
The company scheduled a conference call to discuss the results and prospects for today at 2 p. m. Pacific time (5 p. m. Eastern time). CFO Colette Kress provided additional commentary that is available on the company’s investor website. What makes this notable is the collision of near-term market skepticism with multi-year financial momentum: revenue and margins are at record levels, yet investor caution persists on valuation, geopolitical access and accounting presentations.
