CALIFORNIA: Nvidia reported record quarterly revenue and profit on Wednesday, saying demand linked to artificial intelligence continued to lift its data center business. The chipmaker said fourth-quarter revenue rose to $68.1 billion for the period ended Jan. 25, up 73% from a year earlier and 20% from the prior quarter. The company said its first-quarter revenue outlook is $78.0 billion, plus or minus 2%, as customers keep building out AI computing and networking capacity.
Nvidia said net income for the quarter climbed to $43.0 billion, up 94% from a year earlier. Earnings per diluted share were $1.76 on a GAAP basis and $1.62 on a non-GAAP basis. Gross margin was 75.0% on a GAAP basis and 75.2% on a non-GAAP basis. Operating income rose to $44.3 billion, while operating expenses were $6.8 billion, reflecting higher costs alongside the company’s rapid revenue expansion.
The data center segment, Nvidia’s largest business, generated $62.3 billion in quarterly revenue, up 75% from a year earlier and 22% from the prior quarter. Gaming and AI PC revenue was $3.7 billion, up 47% year on year, while professional visualization revenue was $1.3 billion, up 159%. Automotive and robotics revenue was $604 million, up 6%. For fiscal 2026, Nvidia reported revenue of $215.9 billion, up 65%, and net income of $120.1 billion.
Data center growth leads quarter
Nvidia said data center revenue accounted for most of its quarterly sales, reflecting continued demand for accelerated computing used in training and running AI models. The company said full-year data center revenue rose 68% to $193.7 billion. Chief executive Jensen Huang said “the agentic AI inflection point has arrived,” and highlighted Nvidia’s Grace Blackwell platform and NVLink technology in the company’s latest product lineup, alongside its Vera Rubin platform roadmap referenced in company materials.
In its outlook for the first quarter of fiscal 2027, Nvidia said it is not assuming any data center compute revenue from China. The company forecast GAAP gross margin of 74.9% and non-GAAP gross margin of 75.0%, plus or minus 50 basis points, and said the outlook is inclusive of a 0.1% impact from stock-based compensation expense. Nvidia said GAAP operating expenses are expected to be about $7.7 billion and non-GAAP operating expenses about $7.5 billion, inclusive of $1.9 billion of stock-based compensation expense.
Shareholder returns and reporting update
Nvidia said it returned $41.1 billion to shareholders during fiscal 2026 through share repurchases and cash dividends. As of the end of the fourth quarter, the company said it had $58.5 billion remaining under its share repurchase authorization. Nvidia also declared its next quarterly cash dividend of $0.01 per share, payable April 1, 2026, to shareholders of record on March 11, 2026.
The company said that beginning in the first quarter of fiscal 2027 it will include stock-based compensation expense in its non-GAAP financial measures. For fiscal 2026, Nvidia reported GAAP earnings per diluted share of $4.90, with GAAP gross margin of 71.1% for the year. The fourth-quarter results marked the company’s largest quarterly revenue figure to date and its highest quarterly data center revenue, underscoring the scale of AI-related demand across Nvidia’s core business lines – By Content Syndication Services.