Nvidia once again surpasses its record by 20 percent

New business report, new record for Nvidia. In just three months, Nvidia's quarterly revenue increased by 20 percent to 68.1 billion US dollars. Year-on-year, there is a plus of 73 percent, although the AI boom had already begun at the end of 2024. The revenue increase almost directly translates into net profit: it rises by 35 percent to 43 billion US dollars.

The results show: Nvidia is continuously expanding its production together with chip contract manufacturer TSMC and is consistently selling its hardware at high prices. Ultimately, this results in a gross margin of an enormous 75 percent.

For the entire fiscal year 2026 (end of January 2025 to end of January 2026), Nvidia generated almost 216 billion US dollars in revenue and made 120 billion US dollars in net profit. The company estimates its operating profit for the year at around 130 billion US dollars. Nvidia paid approximately 21.4 billion US dollars in taxes.

The 11 billion US dollar difference to net profit arises from “other income” but primarily exists only on paper. This mainly consists of unrealized gains from investments, including in Intel.

Data centers continue to boom

Nvidia's data center division continues to pull ahead of all other business areas; its revenue increased by 22 percent in one quarter to 62.3 billion US dollars. The networking subgroup, including network processors and switches, is growing even faster than that for AI accelerators. The former increased by 34 percent in three months to almost eleven billion US dollars in revenue. Year-on-year, Nvidia reports 263 percent growth. AI accelerators account for 51.3 billion US dollars, 19 percent more than in the previous quarter and 58 percent more than in the previous year.

In contrast, GeForce graphics cards show traditional seasonal behavior. Revenue decreased by 13 percent compared to the previous Christmas-strong quarter, to 3.7 billion US dollars. Gaming products now account for only 5.5 percent of Nvidia's revenue. And the outlook also looks bleak: “We expect supply constraints in the first quarter of fiscal year 2027 and beyond to be a headwind for gaming,” admits Nvidia CFO Colette Kress.

The professional visualization division is growing significantly in relative terms, but at 1.3 billion US dollars, it still represents a smaller portion. This mainly includes workstation graphics cards. Automotive products remain far behind with 604 million US dollars.

For research and development, Nvidia spent around 18.5 billion US dollars in fiscal year 2026 and 4.6 billion for sales and administrative expenses. Nvidia invested 41.1 billion US dollars in share buybacks and dividends.

15 percent growth without China

In the current quarter, Nvidia expects revenue of 78 billion US dollars (+/-2 percent). This would correspond to approximately 15 percent growth compared to the last quarter. Unlike in the rest of the business report, Nvidia emphasizes in its outlook that this does not include any revenue from AI accelerators for Chinese data centers. Furthermore, Nvidia does not generate any significant revenue in the current quarter from the next generation of accelerators, Rubin. This will be released in the second half of 2026.

Nvidia's stock is fluctuating between +0.2 and +3 percent in after-hours trading. Compared to the reactions to the business reports of hyperscalers Amazon, Google, Meta, and Microsoft, this is already a success. The latter stocks fell on the stock market immediately after their reports.

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