Total revenue for the third quarter of fiscal 2026 reached $57.01 billion, a 62 % increase from $35.08 billion in the same period a year earlier and a 25 % sequential rise from $45.00 billion in Q2 FY2026. Diluted earnings per share climbed to $1.30, beating the consensus estimate of $1.26 by $0.04, or roughly 3 %. The beat was driven by a combination of strong demand for the new Blackwell GPU platform, disciplined cost management, and a favorable product mix that shifted toward higher‑margin data‑center contracts.
The data‑center segment, the company’s primary growth engine, generated $51.20 billion—up 66 % YoY and 25 % sequentially—while the gaming segment added $4.30 billion, a 30 % jump. Professional visualization revenue rose to $760 million, up 56 % YoY, and automotive sales reached $592 million, up 32 % YoY. These gains were underpinned by continued adoption of AI workloads by cloud providers and enterprise customers, and by the rapid ramp‑up of the Blackwell architecture in production.
Gross margin for the quarter was 73.4 % GAAP, slightly lower than the 74.6 % reported in Q3 FY2025, reflecting a mix shift toward newer, higher‑cost GPUs and the impact of inventory write‑downs. Operating margin improved to 58 %, driven by higher gross margin and efficient operating leverage. Net income reached $31.90 billion, a 65 % increase YoY, after a one‑time $4.5 billion charge related to U.S. export controls on China—a charge that was not explicitly disclosed in prior quarters but was confirmed in the earnings release.
Management raised its fiscal fourth‑quarter revenue guidance to $65 billion, a 15 % increase over the $56.5 billion forecasted by analysts, and projected a gross margin of 75 %, up from 71.8 % in Q3. CEO Jensen Huang emphasized that Blackwell sales are “off the charts” and that cloud GPUs are sold out, underscoring sustained demand for AI infrastructure. CFO Colette Kress noted disappointment over export restrictions limiting sales to China, highlighting a geopolitical headwind that could affect future revenue streams.
Analysts reacted positively to the earnings beat and the upward guidance, citing NVIDIA’s continued dominance in the AI chip market and the company’s ability to maintain pricing power. Some analysts expressed caution about the company’s high valuation multiples and the potential for increased competition, but the consensus view remained bullish on the near‑term outlook.
The results reinforce NVIDIA’s position as the leading provider of AI hardware, with data‑center demand driving the majority of growth. The company’s ability to scale the Blackwell platform while managing costs positions it well for continued expansion, though export controls and potential supply‑chain constraints remain key risks to monitor in the coming quarters.
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