Nvidia reported record fourth-quarter revenue of $68.1 billion for the period ended January 25, 2026, surpassing Wall Street expectations and extending a multiyear streak of quarterly beats. Despite the strong results, shares showed muted momentum as investors weighed concerns about the durability of artificial intelligence infrastructure spending.
In pre-market trading Thursday, Nvidia stock rose about 1.4%, according to Google Finance. Shares gained roughly 3% in after-hours trading immediately after the earnings release before trimming those gains. The stock closed at $195.63 and traded at $198.63 in after-hours activity. The pre-market price of the stock is currently $197.75.
Revenue for the quarter increased 73% from a year earlier and 20% from the prior quarter. Analysts surveyed by LSEG had expected $66.21 billion in revenue. Nvidia also posted earnings of $1.62 per share on a non-GAAP basis, above estimates of $1.53 per share. GAAP earnings per diluted share reached $1.76.
For fiscal 2026, Nvidia reported revenue of $215.9 billion, up 65% year over year. GAAP and non-GAAP gross margins for the quarter stood at 75.0% and 75.2%, respectively. For the full fiscal year, those margins were 71.1% and 71.3%.
Data center division drives performance
Nvidia’s data center segment remained the primary engine of growth. The unit generated $62.3 billion in quarterly revenue, accounting for 91% of total sales. StreetAccount had projected $60.69 billion for the segment.
The company attributed much of the expansion to demand for AI infrastructure. Processing units designed for machine learning workloads have become core components of large-scale AI systems. Nvidia’s chips power many of the systems built by major cloud providers and AI developers.
“Our customers are racing to invest in AI compute – the factories powering the AI industrial revolution and their future growth,” CEO Jensen Huang said in a statement accompanying the earnings report.
On the earnings call, Huang added:
“In this new world of AI, compute equals revenues.”
Nvidia issued first-quarter revenue guidance of $78 billion, plus or minus 2%. Analysts had forecast $72.6 billion. Richard Clode, portfolio manager at Janus Henderson Investors, told CNBC:
“The guidance of $78bn in revenues was well ahead of even the most bullish buyside expectations and the fourth straight quarter of accelerating growth in contrast to concerns around a slowdown.”
Huang also highlighted product developments in the company’s official release.
“Computing demand is growing exponentially — the agentic AI inflection point has arrived. Grace Blackwell with NVLink is the king of inference today — delivering an order-of-magnitude lower cost per token — and Vera Rubin will extend that leadership even further,” he said.
Investor focus shifts to sustainability of AI capex
Even with record results, market attention has turned toward the sustainability of AI-related capital expenditures. Hyperscalers saw more than $1 trillion erased from their combined market capitalizations at the start of February before partial recoveries in recent weeks.
Dan Hanbury, global strategic equity co-portfolio manager at Ninety One, said:
“The market is currently fighting broad-based AI concerns.”
He added:
“What is weighing heavy on investors’ minds is how Nvidia can maintain its phenomenal growth rate now its core customers — the hyperscalers — are mostly depleting their cash flows, spending on AI-related capex.”
Richard Clode framed the debate in similar terms.
“The debate has shifted away from near-term results and toward the sustainability of AI capex spending, amid concerns around its quantum, monetisation and potential cashflow degradation,” he told CNBC.
Concerns about AI sector concentration have surfaced alongside scrutiny of Nvidia’s investment relationships. The Guardian reported that a proposed $100 billion investment into OpenAI fell through earlier this month. Nvidia now reportedly plans to invest $30 billion into the company as it seeks a public listing later this year at a valuation of around $730 billion.
On the earnings call, Huang addressed the partnership:
“We continue to work with OpenAI towards a partnership agreement, and believe we are close.”
Shareholder returns and outlook
During fiscal 2026, Nvidia returned $41.1 billion to shareholders through share repurchases and cash dividends. As of the end of the fourth quarter, $58.5 billion remained under its share repurchase authorization. The company announced a quarterly cash dividend of $0.01 per share, payable on April 1, 2026, to shareholders of record on March 11, 2026.
Nvidia’s financial performance has consistently exceeded expectations over the past two fiscal years. The company has reported higher-than-anticipated revenue each quarter during fiscal 2024 and 2025, according to The Guardian.
Still, recent volatility in technology stocks and broader debates about AI spending cycles have tempered investor enthusiasm. While Nvidia’s results reflect strong demand for AI compute infrastructure, markets now appear focused on whether that demand can sustain its current pace through 2026.
Anastasiia G
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