Usual reminder, NVIDIA’s fiscal year is offset, hence why it’s 2026 Q3.
As the last of the major tech company earnings reports for calendar Q3 are released, once again finds itself holding the spot of the most valuable company in the world. As earnings were announced, the market value had dropped slightly from the Five Trillion USD mark that it crested at a bit earlier this year, NVIDIA is still a good half-trillion dollars ahead of its nearest competitor.
NVIDIA’s market capitalization leadership is an apt metaphor for a company that is not just the market leader in AI hardware, but even after multiple years of explosive sales growth, remains solidly in the driver’s seat of the industry as a whole. CEO Jensen Huang is telling investors that “Blackwell sales are off the charts, and cloud GPUs are sold out” in the company’s latest earnings report, and many analysts have stated words to the effect that NVIDIA’s rapid and continued growth is unlike anything else the tech industry has seen this century. At least for now, NVIDIA is selling every bit of data center silicon as fast as it can be assembled – and collecting a hefty margin while doing so.
Still, most do expect every large wave will eventually break, which means NVIDIA is in the somewhat unenviable position of becoming the bellwether for the AI industry as a whole. As a result, NVIDIA’s financial performance is not just a reflection of the state of the company, but to many observers, it is a reflection of the state of the entire AI industry – one that NVIDIA has built its empire upon. And in recent weeks we’ve seen the stock market’s optimism on AI waiver, which has led to the stock prices of NVIDIA and fellow AI collaborators like Oracle retreat on some growing questions on just how much longer the industry can sustain this kind of growth. Moreover questions of the supply chain are taking priority – such as if NVIDIA’s customers and partners can find enough electricity to power all of this silicon they’re ordering.
But for Q3 of NVIDIA’s FY2026, the good times are continuing to roll. With top-line revenue of $57 billion for the quarter, NVIDIA is once again setting revenue records nearly across the board. This is due, in part, to an alignment between data center growth and the seasonal peak in demand for consumer products. There isn’t an NVIDIA business segment that isn’t up by at least 30% year-over-year – and many segments are far greater than that. In short, we’re seeing what NVIDIA can do when the company appears to be firing on all cylinders.
Key Takeaways (GAAP)
💵 Q3 Revenue, $57.0b, up 62% YoY from $35.1b and up 22% QoQ
📈 Q3 Gross Margin at 73.4%, down 1.2pp YoY and up 1.2pp QoQ
💰 Q3 Net Income of $31.9b, up 65% YoY from $19.3b and up 21% QoQ
🪙 Q3 EPS $1.30, up 67% YoY, up 20% QoQ
Highlights
💵 Record Quarterly Revenue
💵 Record Data Center Revenue
💵 Record Professional Visualization Revenue
💵 Record Automotive Revenue
💵 NVIDIA Is Now The World’s Largest Networking Business
Financial Overview
For the third quarter of NVIDIA’s 2026 fiscal year, the company booked a record $57.0b in revenue. Compared to Q3’25, that’s a sizable 62% year-over-year increase in revenue. As with the past few quarters, NVIDIA’s overall revenue growth has tempered some, and the company is no longer doubling its revenue inside of a single year. But that’s about the worst thing you can say about a company that’s still growing over 50% a year.
All told, this is now the 11th consecutive quarter of revenue growth for the company. NVIDIA hasn’t seen a quarterly decline in revenue since Q3’23. Part of this is the lack of seasonality for the data center business, but more than that, NVIDIA is simply having no issue finding more customers and more orders for its hardware and services across the board. Demand is high, not only for NVIDIA, but from NVIDIA to its supply chain as well.
All Things Blackwell
Going beyond NVIDIA’s top-line revenue, the rest of NVIDIA’s financials are quite strong as well. 70%+ margins, already impressive for a hardware company, have resumed creeping up in recent quarters as NVIDIA further ramps its various Blackwell architecture products. At 73.4% (GAAP) there’s still some room left to grow, as evidenced by the fact that gross margins are still 1.2 percentage points below where they were in Q3’FY25. But on the flip side, those same margins have improved by 1.2 percentage points in just a single quarter. At this point the question is how much more NVIDIA can wring from supply-constrained data center sales, versus the drag on margins that come from making the more mundane portions of the rack-scale systems.
And with such high margins, NVIDIA is also delivering record profits, as well. For Q3’26 the company recorded a GAAP net income of $31.9b, 65% higher than the year-ago quarter. In fact, NVIDIA’s GAAP net income has once again grown faster than its top-line revenues, underscoring just how profitable the current market is.
NVIDIA, in turn, has been sending these profits to a few different places. On top of further business-related expenses, NVIDIA repurchased $12.5b in shares in the quarter, bringing the running total for the year to $36.8b – and leaving $62.2b in remaining authorizations. As well, the company has paid out a token $243m in cash dividends for the quarter. Finally, the rest of that cash has gone to NVIDIA’s burgeoning wallet, with the company now holding a cool $60.6b in cash, cash equivalents, and marketable securities – a nearly $4b increase over just the prior quarter.
In fact, it’s almost a bit surprising to see that NVIDIA has been able to squirrel away so much cash despite the company’s spending. With extensive competition for supplies of wafers, packaging, and DRAM, NVIDIA has been very forthcoming that the company has been placing significant orders on long lead-time components in order to secure them for Blackwell and beyond. All told, the company has reached $50.3b in supply-related commitments, a $4.5b increase over where the company stood at the end of Q2.
Looking at the overall picture, NVIDIA’s Q3’26 revenue was largely ahead of the company’s official guidance for the quarter. NVIDIA was officially projecting $54b +/- $1.08b in revenue, so NVIDIA’s $57.0b in revenue beat even the high-end of their revenue projections. Meanwhile, NVIDIA’s non-GAAP gross margins of 73.6% were almost smack-dab in the middle of NVIDIA’s official guidance of 73.5% +/- 0.5pp.
Data Center: Blackwell, Hopper, & Grace
💵 Q3 Revenue $51.2b, up 66% YoY
For Q3’26, NVIDIA’s flagship market platform has once again delivered exceptional growth. Altogether, NVIDIA shipped $51.2b in DC products for the quarter, driving NVIDIA’s explosive growth and potent profitability.
Looking at the big picture, NVIDIA’s data center revenue remains a hair below 90% of all of the company’s revenues. While Q3’s 25% quarter-over-quarter jump in revenue was enough to push the DC business to 89.8% of all NVIDIA revenue, it has fallen just short of crossing back over the 90% mark. At NVIDIA’s current trajectory, the DC business should finally reach this point in the next quarter.
Driving their record business unit revenue, Q3 saw the continued ramping of products based on NVIDIA’s Blackwell Ultra architecture, such as GB300. In fact, according to NVIDIA, Blackwell Ultra is now their leading architecture across all data center customer categories, while the existing Blackwell architecture is still seeing strong demand. And despite this, Blackwell Ultra is still ramping.
All told, revenues from the compute portion of NVIDIA’s data center portfolio grew by 27% QoQ, the biggest such leap in over a year. With compute revenue growth having been largely stalled over the past couple of quarters, it would seem that NVIDIA has finally been able to clear up that jam – be it on the supply side or the pricing side – allowing Blackwell data center sales to surge.
Not to be outdone, NVIDIA’s data center networking sales are also well up, growing by 13% QoQ and a mere 162% YoY. This continues the networking division’s rapid pace of growth over the year, as NVLink compute fabrics for Grace Blackwell systems, as well as the ramp of XDR InfiniBand products, and classical Ethernet (for AI customers) have all been in high demand. NVIDIA’s NVL72 rack scale systems continue to help here as well, as NVLink is used to interconnect all 72 of its Blackwell GPUs. Consequently, NVIDIA’s networking hardware sales have continued to scale up significantly with the growth of NVL72 sales.
Thanks to this rapid growth in sales, according to NVIDIA, their networking segment is by itself now the largest networking business in the world. Meaning that the former Mellanox has now surpassed the networking revenues of Marvell, Juniper, HPE, and the other enterprise networking companies.
Ultimately, the only real bit of bad news for the data center segment is the lack of sales of NVIDIA’s H20 accelerators, which the company described as “insignificant” for the quarter. After export restrictions on the last-generation accelerators impacted NVIDIA’s earnings earlier this year – only for those restrictions to then get lifted – there had been some hope that NVIDIA would still be able to ship those accelerators for revenue. And while some sold back in Q2, NVIDIA has made no further progress in Q3. And with fresh geopolitical issues at play with China discouraging imports of accelerators, NVIDIA may not be selling the rest of those H20 accelerators after all.
Gaming: GeForce
💵 Q3 Revenue $4.3b, up 30% YoY
Alongside NVIDIA’s seemingly evergreen data center segment, the company’s second-largest business unit remains its gaming segment. Similarly fueled by the high demand for Blackwell-based products, gaming revenue has increased by 30% in the last year. Though as the most consumer-focused of the company’s divisions, gaming is also the only segment that is not setting new revenue records this quarter: quarterly gaming revenue in Q3 declined by 0.5%.
Altogether, NVIDIA booked $4.265b of revenue for its gaming segment in Q3’26. Compared to the year-ago period for NVIDIA, this is significant growth versus a relatively weak quarter that saw gaming sales cooling ahead of the Blackwell architecture launch. Meanwhile on a quarterly basis, this was a $22m drop versus Q2, bucking the broader QoQ growth trend for the company.
The stall in gaming sales growth comes as NVIDIA faces the seasonal demand for consumer products. While sales remain high in Q3, NVIDIA is reporting that channel inventories have largely normalized going into the holiday season – meaning that there’s enough supply of cards to meet the expected holiday demand. Q3 is normally the strongest quarter for the gaming division, so while NVIDIA does not publish official segment-level predictions for revenue, it wouldn’t be surprising if Q2’26 remains the high-water mark for the year.
Otherwise, NVIDIA is benefitting from having a complete Blackwell-based GeForce RTX 50 series product stack in the market right now. Which is why revenue has held steady at $4.3b for the quarter – and is up significantly YoY – but at the same time means that there isn’t anything else to significantly move the needle in the short term.
Professional Visualization
💵 Q3 Revenue $760m, up 56% YoY
As with NVIDIA’s gaming segment, their professional visualization segment is continuing to benefit from this year’s release of NVIDIA’s Blackwell architecture products. Along with Blackwell-based video cards, the most recent quarter saw Grace Blackwell SoCs added into the mix, thanks to GB10-based DGX Spark systems finally launching.
With $760m in revenue for the ProViz segment for Q2’26, the business unit has seen its revenues grow by 56% on a YoY basis, or 26% quarterly. Arguably even more significant, this marks the first new revenue record for the segment in over 3 years, finally vaulting past its previous all-time revenue record of $643m, set during the tail-end of the COVID era.
As this segment has previously earned all of its revenue from GPU-based products and related services and accessories, the launch of the small form factor DGX Spark and NVIDIA’s first Grace Blackwell SoC marks a significant milestone for the business unit. And it will be the start of an even bigger turning point, if NVIDIA has their way. Still, it’s unclear how much of that record revenue comes from SoC sales versus GPU sales, as NVIDIA didn’t further break things down in their earnings report. DGX Spark is thought to be a high margin chip for the company – but then that goes for all of their RTX Pro video cards as well.
(Ian says: we had been expecting Spark revenue in the quarter, especially given the initial launch date was assumed to be 3-6 months ago. Manufacturing delays and silicon respins has led to the delay, however samples have been going out for review in the last few weeks. We’ve seen a number of media with some of NVIDIA’s own brand, but it appears that the OEM partners such as Dell, ASUS, MSI and others are sampling at least an order of magnitude more into the media ecosystem ahead of the holiday season or ahead of a Q1 ramp. Yes, I was offered one from an OEM partner – this morning in fact. I know some media with half-a-dozen incoming.)
Following DGX Spark, NVIDIA is still slated to launch the larger DGX Station systems as well, which puts GB300 into a desktop workstation. Though at this point NVIDIA has still not released a shipping date. Which leaves NVIDIA’s significant lineup of RTX Pro products along with backlogged demand for DGX Spark to help carry this segment in Q4.
(Ian: I’m at Supercomputing 2025 this week in St. Louis, and a number of partners had bare DGX stations on display as well. The SO-CAMM versions.
After speaking with one of the OEMs, the expected ‘date’ for hardware for them is March. As a result we might expect to see a formal launch either at GTC 2026 or Computex 2026 a couple of months later.)
Automotive/Robotics: Jetson, DRIVE, Isaac
💵 Q3 Revenue $592m, up 32% YoY
The last of NVIDIA’s record-setting business units for the quarter is the automotive, embedded computing, and robotics unit. NVIDIA’s fourth-largest segment has been cruising along for the last few quarters, earning a relatively consistent 550m-600m per quarter.
By the numbers, revenues for the automotive and robotics business unit have grown by 32% year-over-year, while the 1% QoQ growth has been just enough of an improvement to propel the business unit to a new all-time record.
As with Q2’26, NVIDIA is attributing the growth of this unit to continued sales growth of their self-driving platforms. With the relatively long lead time on automotive product development and sales – thanks in large part to safety validation and product continuity needs – NVIDIA is largely reaping the benefits of deals made in the past years and for which the hardware is finally shipping for revenue. And ultimately, deals inked now will be what drives the growth of this segment a couple of years down the line.
To that end, NVIDIA’s future growth will hinge on the latest DRIVE AGX SoC, Thor, which began shipping last quarter. The Blackwell-based SoC succeeds the circa-2022 Orin SoC, bringing a full generation’s worth of improvements, as well as new Arm Neoverse V3AE-based CPU cores. Alongside the availability of the SoC itself, NVIDIA has also been shipping Jetson AGX Thor embedded computing boards that incorporate the new SoC.
Automotive aside, NVIDIA once again had little to say about robotics for the most recent quarter. This isn’t unusual, as the segment seems to still be quite small overall, but it remains one of NVIDIA’s big long-term bets.
OEM & Other
💵 Q3 Revenue $174m, up 79% YoY
Rounding out NVIDIA’s reporting segments, we have the OEM & Other category. This catch-all unit has been used to account for things such as sales of GeForce MX GPUs (i.e. ultra low-end dGPUs for laptops) as well as NVIDIA’s revenue from Nintendo Switch 1 sales. (To date, NVIDIA still has not confirmed if they’re also booking Switch 2 revenue here, or as part of Gaming)
For the quarter, the OEM&O segment booked $174m in revenue, which was up 79% from the year-ago quarter and a mere 1% sequentially. Unfortunately, NVIDIA is not providing any background information for this segment on this year’s reports, so there are no customers or product developments that the revenue growth can be concretely attributed to.
Outlook, Q4 FY2026
Outlook is as follows:
💵 Q4’26 Revenue, $65.0b, +/- $1.3b
📈 Q4’26 Gross Margins of 75.0% +/- 0.5pp (non-GAAP)
For the fourth quarter of their 2026 fiscal year, NVIDIA is once again projecting a record quarter for revenue, with another quarter of double-digit sequential growth. Assuming NVIDIA’s Q4 revenue goes as predicted, the company is expecting $65b +/- $1.3b in revenue, which would represent 65% YoY revenue growth and 14% quarterly revenue growth.
Meanwhile, gross margins should finally finish their recovery, with NVIDIA projecting a non-GAAP margin of 75.0%, plus or minus 50 basis points. Throughout the year NVIDIA has reiterated that it expects to exit 2026 with gross margins in the mid-70% range, and hitting 75% in Q4 would put them right in the middle of that range. As well, it means that the margin hit from ramping Blackwell will have finally ended, which has been what’s kept NVIDIA’s margins below the 75% mark for most of the past four quarters.
Overall, NVIDIA’s Q4 outlook is very straightforward. NVIDIA is selling all of its data center products as fast as they can make them, and their other segments don’t appear to be too far behind in that demand. So long as NVIDIA’s suppliers can meet their own commitments, then NVIDIA should have little trouble selling $65b in gear in Q4.
As with Q3, the major drivers for NVIDIA’s revenues in Q4 will continue to be all things Blackwell: more high margin Blackwell Ultra servers for the data center segment, more Blackwell-based GeForce cards for the consumer segment, and the continued ramp-up of Blackwell-based Thor SoCs and GB10 SoCs for the DGX Spark. Suffice it to say, Blackwell sales are going to drive NVIDIA’s financial performance well in the black right through the end of this year.
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Nothing beneath the fold today, due to travel and trade shows. Next time!
