Nvidia Beats Expectations, Jensen Huang: The Inflection Point for AI Agent Applications Has Arrived

Shanghai Securities News China Securities Journal Report (Reporter Zheng Weihan): After the US stock market closed on February 25, NVIDIA announced its financial results for the fourth quarter of fiscal year 2026 and the full fiscal year ending January 25, 2026.

The data shows that NVIDIA’s revenue in the fourth quarter reached a record high of $68.1 billion, a 20% increase from the previous quarter and a 73% increase year-over-year; for the full fiscal year 2026, revenue was $215.9 billion, up 65% from the previous year.

In the fourth quarter, NVIDIA’s GAAP and non-GAAP gross margins were 75.0% and 75.2%, respectively; for the full fiscal year 2026, GAAP and non-GAAP gross margins were 71.1% and 71.3%.

“Computing demand is growing exponentially, and the inflection point for AI applications has arrived. With NVLink technology, NVIDIA’s Grace Blackwell chip has reduced the cost per token by an order of magnitude in inference, and the next-generation Vera Rubin chip will further solidify the company’s leadership,” said Jensen Huang, founder and CEO of NVIDIA. “Enterprise adoption of intelligent agents is rapidly increasing, and customers are racing to invest in AI computing power. NVIDIA’s computing factories will further drive the industrial revolution brought by artificial intelligence and support future corporate growth.”

Previously, NVIDIA provided a quarterly guidance of $65 billion in revenue, with a variance of ±2%; GAAP and non-GAAP gross margins were expected to be 74.8% and 75.0%, respectively, with a variance of ±50 basis points. NVIDIA’s financial performance in the fourth quarter of fiscal year 2026 exceeded previous expectations.

For the first quarter of fiscal year 2027, NVIDIA expects revenue of $78 billion, with a variance of ±2%; GAAP and non-GAAP gross margins are projected at 74.9% and 75.0%, respectively, with a variance of ±50 basis points. Notably, NVIDIA’s outlook does not include revenue from its data center computing business in China.

Specifically, regarding NVIDIA’s various business segments, in data centers, driven by growth in accelerated computing and AI, the fourth quarter revenue hit a record high of $62.3 billion, up 22% from the previous quarter and 75% year-over-year; annual revenue increased by 68% year-over-year to a record $193.7 billion.

In gaming and AI PCs, benefiting from strong demand for Blackwell products, the fourth quarter revenue reached $3.7 billion, a 47% increase from the same period last year; however, due to natural channel inventory decline after the holiday season, it decreased 13% from the previous quarter. Full-year revenue increased by 41% year-over-year to a record $16 billion.

In professional visualization, the fourth quarter revenue was $1.3 billion, up 74% from the previous quarter and 159% year-over-year; full-year revenue increased by 70% year-over-year to a record $3.2 billion.

In automotive and robotics, benefiting from the continued adoption of autonomous driving, the fourth quarter revenue was $604 million, up 2% from the previous quarter and 6% year-over-year; full-year revenue increased by 39% year-over-year to a record $2.3 billion.