Nvda posts record $68.1 billion quarter while market frets over guidance reaction

nvda reported record revenue of $68. 1 billion for the fourth quarter ended January 25, 2026, and fiscal 2026 revenue of $215. 9 billion, but the company’s upbeat guide for the current quarter and mid-70% margins left the stock sliding in Thursday morning trading.

Nvda posts record quarterly revenue and strong margins

NVIDIA reported fourth-quarter revenue of $68. 1 billion, up 20% from the previous quarter and up 73% from a year earlier, and fiscal 2026 revenue of $215. 9 billion, up 65% year over year. For the quarter, GAAP and non-GAAP gross margins were 75. 0% and 75. 2%; for fiscal 2026, GAAP and non-GAAP gross margins were 71. 1% and 71. 3%. 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.

Market reaction: roughly $6 billion guide beat, but stock falls

The company guided the current quarter roughly $6 billion above consensus estimates, and the stock fell in Thursday morning trading despite that beat. On a segment of Opening Bid, Visible Alpha head of TMT research Melissa Otto and Laffer Tengler Investments CEO and CIO Nancy Tengler joined host Brian Sozzi to debate whether NVIDIA’s mid-70% gross margins and strong fundamentals were already priced in and what would create a fresh catalyst.

Debate on valuation, guidance range and demand

During the discussion, one guest framed the company’s Q1 guide as roughly $77 billion to $79 billion versus a consensus of $72. 4 billion. Otto noted the mid-70s gross-margin level was already reflected in market expectations. Tengler countered that the stock appeared undervalued earlier in the cycle and cited 60-plus percent earnings growth and trading at a price multiple below 25 times next year’s earnings; she also said China hasn’t fully participated and that sovereign customers posted $30 billion in sovereign revenues, a threefold year-over-year increase. Tengler added that hyperscalers have told customers they lack capacity, summarizing the dynamic as “compute equals inference equals revenues. ”

Shareholder returns, dividend and buyback runway

During fiscal 2026, NVIDIA returned $41. 1 billion to shareholders share repurchases and cash dividends. At the end of the fourth quarter, the company had $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.

Leadership comments, accounting changes and outlook notes

Founder and CEO Jensen Huang said the "agentic AI inflection point has arrived, " calling Grace Blackwell with NVLink "the king of inference today — delivering an order-of-magnitude lower cost per token" and naming Vera Rubin as a future extension of that leadership. Beginning in the first quarter of fiscal 2027, NVIDIA will include stock-based compensation expense in non-GAAP financial measures and described stock-based compensation as a foundational component of its compensation program to attract and retain talent. The company’s outlook for the first quarter of fiscal 2027 is 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 discrete items and material changes to NVIDIA’s tax environment.

Conference call and supplemental materials

NVIDIA scheduled a conference call with analysts and investors today at 2 p. m. Pacific time (5 p. m. Eastern time) and will provide a live, listen-only webcast on its investor relations website; the webcast will be recorded and available for replay until the company’s next conference call for its first quarter of fiscal 2027. CFO commentary by Colette Kress is available online. The company uses non-GAAP measures to supplement GAAP financial statements, and reconciliations adjust GAAP measures to exclude stock-based compensation expense and acquisition-related and other costs; further detail is unclear in the provided context.

Market participants will watch the replay and upcoming quarterly disclosures for more color on the company’s fiscal 2027 guidance, capacity commitments from customers and how the repurchase authorization is deployed.