Nvidia posts blockbuster results… “Demand is rising exponentially”

Korea Economic Daily

Summary

Nvidia said fiscal 2026 Q4 revenue and earnings per share (EPS) beat consensus, posting strong year-on-year growth.
In fiscal 2027 Q1 guidance, it presented revenue and gross margin above market expectations, with strength in the data center segment.
Nvidia said expanding demand for agentic AI, AI data centers, and AI accelerators will be key to future growth, adding that the share price rose in after-hours trading after the earnings release.

Q4 beats market estimates

Q1 outlook also tops expectations

“Vera Rubin GPU leadership to continue”

Nvidia delivered fiscal 2026 fourth-quarter (November 2025–January 2026) revenue and earnings per share (EPS) that exceeded market expectations. Its fiscal 2027 first-quarter (February–April 2026) outlook is also above consensus (the average of market forecasts). The beat is seen as being driven by intensifying competition to invest in AI data centers as agentic AI spreads, which is continuing to boost demand for Nvidia’s AI accelerators.

On the 25th (local time), Nvidia announced that in fiscal 2026 Q4 it posted revenue of $68.13 billion and EPS of $1.62. Both revenue and EPS topped consensus ($65.91 billion in revenue, $1.5 in EPS). Year on year, revenue rose 73% and EPS climbed 82%.

Gross margin came in at 75%. The market assessed that “Nvidia has dispelled concerns over margin erosion stemming from a surge in memory chip prices.”

Guidance for fiscal 2027 Q1 also came in above expectations. Revenue was guided at $78.0 billion (±2% points) versus the $72.78 billion consensus, and gross margin was projected at 74.9–75.0%.

By segment, the data center unit posted revenue of $62.31 billion, beating consensus ($60.36 billion). However, gaming ($37.3 billion) and automotive ($6.0 billion) came in slightly below market expectations ($40.1 billion and $6.2 billion, respectively).

Nvidia said, “Grace Blackwell AI accelerators have dramatically lowered cost per token, establishing themselves as a leader in inference,” adding that “Vera Rubin will strengthen that leadership.” It continued, “The number of companies adopting agentic AI is surging, and customers are competing to invest in AI computing,” and assessed that “AI accelerators are a key element driving the AI industrial revolution and future growth.”

Nvidia shares were up in the 1% range in after-hours trading following the earnings release, after rising more than 4% at one point.

By Jung-su Hwang, hjs@hankyung.com