Nvidia reported revenues of $57 billion for the third fiscal quarter ended October 26, up 22% from the second quarter and up 62% from a year ago.
In after-hours trading, Nvidia’s stock is already up 3.85% on the news.
Analysts expected Nvidia to report third-fiscal quarter earnings of $1.26 a share for the October 26 quarter, while they expected $1.43 a share for the fourth fiscal January 31 quarter. They expected revenues of $55.09 billion for the October 26 quarter and revenues of $61.84 billion for the fourth fiscal quarter.
This quarter is being closely watched as there is so much at stake, as Nvidia’s AI chips are so hot that they’re a barometer for the much-hyped AI economy. If there’s any slowdown in demand for Nvidia chips, investors could panic. But today, Nvidia didn’t let investors down, as the growth beat expectations.
The size of recent deals, and the parties it is dealing with, show how far Nvidia has come in terms of being a linchpin of the AI ecosystem. Nvidia recently said it would invest $100 billion in Open AI, the seminal AI company that will in turn buy hundreds of billions of dollars in chips from Nvidia.
Some of the obstacles in Nvidia’s path are political. Huang has strengthened relations with Donald Trump by focusing on bringing high-value tech jobs to the U.S., but he has run into a roadblock with the Trump administration’s poor relations with China. Sales of high-end chips to China have been blocked, and Huang has warned that the U.S. risks falling behind in the AI arms race.
In the third fiscal quarter, Nvidia reported data center revenue was $51.2 billion, up 25% from Q2 and up 66% from a year ago.
For the quarter, GAAP and non-GAAP gross margins were 73.4% and 73.6%, respectively. For the quarter, GAAP and non-GAAP earnings per diluted share were both $1.30.
“Blackwell sales are off the charts, and cloud GPUs are sold out,” said Jensen Huang, founder and CEO of Nvidia, in a statement, “Compute demand keeps accelerating and compounding across training and inference — each growing exponentially. We’ve entered the virtuous cycle of AI. The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once.”
During the first nine months of fiscal 2026, Nvidia returned $37.0 billion to shareholders in the form of shares repurchased and cash dividends. As of the end of the third quarter, the company had $62.2 billion remaining under its share repurchase authorization.
Outlook
Nvidia’s outlooks is as follows:
- Revenue is expected to be $65.0 billion, plus or minus 2%.
- GAAP and non-GAAP gross margins are expected to be 74.8% and 75.0%, respectively, plus or minus 50 basis points.
- GAAP and non-GAAP operating expenses are expected to be approximately $6.7 billion and $5.0 billion, respectively.
- GAAP and non-GAAP other income and expense are expected to be an income of approximately $500 million, excluding gains and losses from non-marketable and publicly-held equity securities.
- GAAP and non-GAAP tax rates are expected to be 17.0%, plus or minus 1%, excluding any discrete items.
Highlights
Data Center
- Third-quarter revenue was a record $51.2 billion, up 25% from the previous quarter and up 66% from a year ago.
- During the quarter, Nvidia revealed that Nvidia Blackwell achieved the highest performance and best overall efficiency in the SemiAnalysis InferenceMAX benchmarks, while delivering 10x throughput per megawatt compared with the previous generation.
- Announced a strategic partnership with OpenAI to deploy at least 10 gigawatts of NVIDIA systems for OpenAI’s next-generation AI infrastructure.
- Partnered with industry leaders, including Google Cloud, Microsoft, Oracle and xAI, to build America’s AI infrastructure with hundreds of thousands of Nvidia GPUs.
- Announced that, for the first time, Anthropic will run and scale on Nvidia infrastructure, initially adopting 1 gigawatt of compute capacity with Nvidia Grace Blackwell and Vera Rubin systems.
- Announced a collaboration with Intel to jointly develop multiple generations of custom data center and PC products with Nvidia NVLink.
- Revealed plans to accelerate seven new supercomputers, including with Oracle to build the U.S. Department of Energy’s largest AI supercomputer, Solstice, featuring 100,000 Nvidia Blackwell GPUs, plus another system, Equinox, featuring 10,000 Nvidia Blackwell GPUs.
- Celebrated the first Nvidia Blackwell wafer produced on U.S. soil at TSMC’s Arizona facility, representing revitalization of U.S. manufacturing as Blackwell reached volume production.
- Unveiled Nvidia Rubin CPX, a new class of GPU purpose-built for massive-context processing.
- Announced that Nvidia is working with the South Korea government and industrial leaders, including Hyundai Motor Group, Samsung Electronics, SK Group and NAVER Cloud, to expand the nation’s AI infrastructure with over a quarter-million NVIDIA GPUs.
Gaming and AI PC
- Third-quarter Gaming revenue was $4.3 billion, down 1% from the previous quarter and up 30% from a year ago. Big game companies launched Borderlands 4, Battlefield 6 and ARC Raiders with Nvidia DLSS 4 with Multi Frame Generation and Nvidia Reflex.
- The company celebrated 25 years of GeForce with the GeForce Gamer Festival in Seoul, South Korea, a live event including the latest NVIDIA RTX announcements.
- It unveiled an Nvidia RTX Remix update, adding an advanced path-traced particle system that enables modders to enhance traditional effects.
- Released an Nvidia Blueprint for 3D object generation, RTX-optimized Nvidia TensorRT for Windows ML and performance boosts for leading AI tools on RTX AI PCs.
Professional Visualization
- Third-quarter revenue was $760 million, up 26% from the previous quarter and up 56% from a year ago. Nvidia began shipping Nvidia DGX Spark™, the world’s smallest AI supercomputer, delivering NVIDIA’s AI stack in a compact form factor.
Automotive and Robotics
- Third-quarter Automotive revenue was $592 million, up 1% from the previous quarter and up 32% from a year ago.