Nvidia 2026 Q3 Earnings Beats Expectations, Net Income Surges 65.3%

Nvidia (NVDA) delivered a standout performance in Q3 2026, surpassing Wall Street expectations with a 62.5% year-over-year revenue increase to $57.01 billion and a 65.8% surge in EPS to $1.31. The company raised Q4 revenue guidance to $65 billion, signaling sustained demand for its AI infrastructure.

Revenue

Nvidia’s total revenue soared to $57.01 billion in Q3 2026, a 62.5% jump from $35.08 billion in the prior-year period. The Data Center segment led with $51.22 billion, reflecting 66.4% year-over-year growth, while Compute revenue reached $43.03 billion. Networking revenue grew to $8.19 billion, Gaming to $4.26 billion, and Professional Visualization to $760 million. Automotive and OEM segments contributed $592 million and $174 million, respectively, marking 31.9% and 79.4% year-over-year increases.

Earnings/Net Income

Nvidia’s EPS surged 65.8% year-over-year to $1.31, while net income reached $31.91 billion—a 65.3% increase from $19.31 billion in Q3 2025. The company set a new record for Q3 net income, the highest in over 20 years. Nvidia’s EPS and net income surged by 65.8% and 65.3% year-over-year, underscoring robust profitability.

Post-Earnings Price Action Review

The strategy of buying NVDA on strong revenue beats and holding for 30 days shows favorable potential, given the company’s 62% year-over-year revenue growth to $57 billion, exceeding the $55 billion consensus. Post-earnings, NVDA’s stock surged 6%, with analysts like Kenio Fontes upgrading it to “cautious Buy.” Adjusted gross margins of 73.6% in Q3 and Q4 guidance of $65 billion at ~75% gross margins highlight operational efficiency and optimism. While historical data on this strategy is limited, NVDA’s track record and bullish sentiment suggest potential gains. Risks include demand shifts, production issues, or regulatory changes.

CEO Commentary

Jen-Hsun Huang emphasized NVIDIA’s leadership in AI platform shifts, including agentic AI and CUDA’s 20-year optimization. He noted AI infrastructure demand driven by hyperscalers and sovereign projects, with challenges like H20 sales to China. Huang expressed confidence in supply chain resilience and partnerships, projecting a $3–$4 trillion AI infrastructure market by 2030.

Guidance

NVIDIA guided Q4 FY2026 revenue to $65 billion (±2%), with GAAP and non-GAAP gross margins targeting 74.8% and 75%. For FY2027, gross margins are expected to remain in the mid-70s despite rising costs, with operating expenses projected at $6.7 billion (GAAP) and $5 billion (non-GAAP).

Additional News

Recent non-earnings updates include strategic partnerships with OpenAI and Anthropic, expanding NVIDIA’s AI ecosystem. The company also announced a $0.01 per share quarterly dividend and a $62.2 billion remaining buyback authorization. Additionally, NVIDIA secured a $10 billion strategic partnership with OpenAI for AI data-center buildouts, further solidifying its role in global AI infrastructure.

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