Nvidia 2026 Q3 Earnings Record $31.9B Net Income, 65.3% YoY Growth

Nvidia (NVDA) delivered a blockbuster Q3 2026 earnings report, significantly outperforming expectations. The company reported revenue of $57.01 billion, a 62.5% increase from $35.08 billion in the prior-year period, while EPS surged 65.8% to $1.31. Guidance was raised for Q4, with revenue projected at $65 billion (±2%), reflecting robust demand for AI infrastructure.

Revenue

Nvidia’s revenue growth was driven by a 66% surge in Data Center segment sales to $51.22 billion, underscoring the dominance of Blackwell and Hopper GPUs in AI-driven infrastructure. Compute revenue reached $43.03 billion, while Networking and Gaming segments contributed $8.19 billion and $4.26 billion, respectively. Professional Visualization, Automotive, and OEM/Other segments added $760 million, $592 million, and $174 million, completing a diversified revenue stream that highlights the company’s leadership across AI, gaming, and enterprise markets.

Earnings/Net Income

Net income soared 65.3% year-over-year to $31.91 billion, marking a record high for the quarter and the highest in over two decades. The EPS increase of 65.8% to $1.31 reinforces the company’s profitability amid surging demand for AI and GPU-accelerated computing. This performance underscores Nvidia’s ability to capitalize on the AI boom and maintain strong margins.

Post-Earnings Price Action Review

A strategy of buying NVDA shares when revenue beats estimates and holding for 30 days has historically shown favorable outcomes. Over 10 backtested simulations, the approach generated a 20% total profit, with the best single simulation yielding 35.2%. The average maximum drawdown was 10.2%, with the worst-case scenario at 6.8%, indicating resilience during market volatility. While some scenarios incurred losses, the overall trend suggests that Nvidia’s revenue growth drives positive short-term gains, particularly in a high-demand AI environment.

CEO Commentary

CEO Jen-Hsun Huang emphasized Nvidia’s pivotal role in driving three AI platform shifts: accelerated computing, generative AI, and agentic AI. He highlighted the Blackwell and Rubin architectures as key differentiators, enabling end-to-end AI workflows. Huang’s optimism centered on the “virtuous cycle” of AI adoption, with demand for GPU-accelerated systems expanding across hyperscalers, robotics, and enterprise applications.

Guidance

Nvidia raised its Q4 2026 revenue guidance to $65 billion (±2%), reflecting 14% sequential growth and 66% year-over-year acceleration. GAAP and non-GAAP gross margins are expected to remain robust at 74.8% and 75%, respectively. For FY2027, the company aims to sustain mid-70s gross margins despite rising input costs, with operating expenses estimated at $6.7 billion (GAAP) and $5 billion (non-GAAP).

Additional News

Nvidia announced a $500 billion Blackwell and Rubin revenue visibility through 2026, with Rubin’s production ramping in H2 2026. The company also confirmed a $0.01 per share quarterly dividend, signaling confidence in its financial resilience. Additionally, a strategic partnership with OpenAI involves financing 10 GW of AI data-center infrastructure, further solidifying Nvidia’s ecosystem dominance.