NVIDIA announced stellar financial results for its third quarter of fiscal 2026, showcasing robust growth across its business segments amid surging demand for AI and accelerated computing technologies.
Overview of Financial Performance
NVIDIA reported record revenue of $57.0 billion for Q3 FY 2026, marking a 62% year-over-year increase and a 22% sequential rise from the previous quarter. This revenue surge was fueled primarily by the company’s data center segment, which achieved record sales of $51.2 billion, up 66% from a year ago and 25% sequentially. The overall gross margin stood at 73.4% on a GAAP basis, slightly down by 120 basis points year-over-year but reflecting strong profitability given the scale of business growth. Earnings per diluted share (EPS) were $1.30 GAAP and non-GAAP, significantly beating analysts’ expectations and up 67% compared to the prior year quarter.
Segment Highlights
- Data Center: The powerhouse contributor to NVIDIA’s growth, with revenue surging to $51.2 billion this quarter, marking a 66% annual increase driven by accelerated computing demand in AI workloads and cloud GPU sales that are effectively sold out. This segment’s expansion underscores NVIDIA’s leadership in AI infrastructure.
- Networking Business: NVIDIA has risen to become the world’s largest networking business, buoyed by the adoption of its advanced networking platforms.
- Blackwell Platform: Sales of NVIDIA’s new Blackwell architecture GPUs are described as “off the charts,” driving much of the revenue growth across customer categories.
Profitability and Operating Metrics
Despite the expansive growth, NVIDIA maintained strong profitability. GAAP gross margins were 73.4%, and non-GAAP gross margins were equally impressive at 73.6%. Operating expenses grew 36% year-over-year to $5.8 billion, reflecting increased investments in research, development, and sales to sustain innovation and market expansion. Operating income rose sharply by 65% to $36.0 billion, and net income followed suit with a 65% increase to $31.9 billion, highlighting efficient operational management alongside growth.
Cash Flow and Shareholder Returns
NVIDIA also displayed healthy cash flow generation with net cash provided by operating activities reaching $23.75 billion. The company returned $37.0 billion to shareholders in the first nine months of fiscal 2026 through share repurchases and cash dividends, retaining a strong capital return policy with $62.2 billion remaining under its buyback authorization.
Forward Guidance
Looking ahead, NVIDIA expects its Q4 FY26 revenue to hit $65.0 billion, plus or minus 2%, which would represent continued momentum and robust growth. The company forecasts GAAP and non-GAAP gross margins around 74.8% to 75.0%, with operating expenses estimated at approximately $5.0 billion. This optimistic outlook is reinforced by strong demand forecasts for AI computing, data centers, and accelerated workloads.
CEO Commentary
Jensen Huang, NVIDIA’s founder and CEO, emphasized the extraordinary demand for AI chips and cloud GPUs, noting, “Blackwell sales are off the charts, and cloud GPUs are sold out,” underscoring the pivotal role NVIDIA’s innovative platforms play in enabling the AI revolution.
NVIDIA Q3 FY26 financial highlights at a glance:
- Revenue: $57.0 billion, +62% YoY, +22% QoQ
- Data Center revenue: $51.2 billion, +66% YoY
- GAAP gross margin: 73.4%
- Operating income: $36.0 billion, +65% YoY
- Net income: $31.9 billion, +65% YoY
- Diluted EPS: $1.30, +67% YoY
- Q4 FY26 guidance: $65 billion revenue, ~75% margin
This fiscal quarter firmly establishes NVIDIA’s leadership in accelerated computing and AI-driven markets with a record-breaking financial trajectory.