TLDR
- NVIDIA hits $57B revenue on AI boom, guiding even higher for next quarter.
- Blackwell AI drives massive data center gains, boosting margins to 75%.
- Strategic cloud deals fuel expansion with OpenAI, Google, and Microsoft.
- Gaming softens slightly but GeForce upgrades keep market momentum alive.
- $22B free cash flow signals strong liquidity and aggressive shareholder returns.
NVIDIA Corporation (NASDAQ: NVDA) shares rose 2.85% to close at $186.52 after reporting record quarterly results.
NVIDIA Corporation, NVDA
The company posted fiscal Q3 2026 revenue of $57.01 billion, surpassing expectations and marking a 22% sequential and 62% annual increase. Strong demand for its Blackwell-powered AI platforms fueled growth across data center, gaming, and professional visualization segments.
Record-Breaking Performance and Expanding Margins
NVIDIA achieved record revenue of $57.0 billion in the third quarter, supported by expanding AI infrastructure deployments worldwide. Its adjusted gross margin stood at 73.6%, while adjusted operating income reached $37.75 billion. Adjusted net income rose to $31.77 billion, reflecting robust operational efficiency and higher-scale profitability.
Free cash flow totaled $22.09 billion, indicating strong liquidity and disciplined capital management. The company declared a quarterly dividend of $0.01 per share, payable on December 26, 2025. During the first nine months of fiscal 2026, NVIDIA returned $37.0 billion to shareholders through buybacks and dividends.
NVIDIA guided fiscal Q4 revenue to about $65 billion, plus or minus 2%, showing continued momentum in global AI adoption. The company expects GAAP and non-GAAP gross margins near 75%, sustaining strong profitability. Additionally, it projects operating expenses of roughly $6.7 billion on a GAAP basis.
Data Center Dominance and Strategic Collaborations
The Data Center business led performance with $51.2 billion in revenue, up 25% from Q2 and 66% from a year earlier. Growth stemmed from rising demand for cloud GPUs and Blackwell architecture adoption across major hyperscalers. Partnerships with OpenAI, Google Cloud, Microsoft, Oracle, and xAI strengthened NVIDIA’s leadership in AI infrastructure.
NVIDIA also advanced collaborations with Intel and Arm to expand its ecosystem across data center and PC markets. It launched new technologies, including NVQLink and NVLink Fusion, enhancing AI system efficiency and scalability. The company revealed plans for multiple next-generation supercomputers featuring thousands of Blackwell GPUs.
The firm expanded globally, investing in the U.K. and South Korea to boost AI infrastructure capacity. It also launched the Industrial AI Cloud with Deutsche Telekom to accelerate industrial transformation. These developments highlight NVIDIA’s broad influence across sectors adopting large-scale AI computing.
Broad-Based Growth Across Gaming, Visualization and Automotive
The Gaming segment posted $4.3 billion in revenue, down 1% from the prior quarter but up 30% year over year. NVIDIA enhanced its GeForce lineup and launched major titles supporting DLSS 4 and Reflex technologies. The company also celebrated 25 years of GeForce with a global gamer event in South Korea.
Professional Visualization revenue reached $760 million, up 26% quarter over quarter and 56% year over year. NVIDIA began shipping DGX Spark, a compact AI supercomputer designed for developers and enterprises. Moreover, the segment benefited from growing adoption of Omniverse-powered 3D workflows across industries.
Automotive and Robotics revenue climbed to $592 million, rising 32% from a year earlier. NVIDIA introduced DRIVE AGX Hyperion 10 and expanded partnerships with automakers to enable advanced level 4 vehicles. The company also teamed with robotics and industrial leaders to advance physical AI solutions globally.
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