Nvidia Reports Record $68 Billion Quarterly Revenue and Projects $78 Billion for Next Quarter, CEO Jensen Huang Attributes Growth to Rapidly Increasing Agent Adoption

Once again, Nvidia CEO Jensen Huang had a straightforward response for investors concerned that the AI spending race might be exaggerated.

During the $4.8-trillion-valuation chip supplier’s earnings call on Wednesday, analysts questioned Huang about whether major cloud customers – whose annual capital expenditures are approaching $700 billion – could maintain the pace. According to Huang, it’s an obvious answer. In the new AI-based economy, compute and revenue are essentially equivalent. Without the ability to generate AI tokens, which are the small segments of chatbot outputs in the form of words and text, cloud providers have no means to grow significantly.

“I am confident in their cash flow growth,” Huang replied to a question. “And the reason is very simple.”

“We have now witnessed the inflection of agentic AI and the utility of agents globally and in enterprises everywhere, and as a result, you’re seeing an extraordinary compute demand,” Huang continued. “In this new AI world, compute is revenues. Without compute, there’s no way to generate tokens. Without tokens, there’s no way to increase revenues.”

So, the hundreds of billions of dollars in capital expenditures are now flowing into AI, which ultimately translates into growth, which “directly translates to revenues,” said Huang.

provided AI investors with a glimpse of a sharp recovery in its results for the fourth quarter and the full year of fiscal 2026, with results showing a record revenue of $68.1 billion for the quarter, exceeding guidance by approximately $3 billion. Those figures were 20% higher than the third quarter and a substantial 73% higher than a year ago.

Notably, the company released a guidance of $78 billion for the first quarter of fiscal 2027. Total supply-related commitments increased from $50.3 billion at the end of the third quarter to $95.2 billion at the end of the fourth quarter. In a statement, Nvidia stated that it has “strategically secured inventory and capacity to meet demand beyond the next several quarters.”

Heading into the results, investors were prepared for – a sigh, a hesitation, anything – that might suggest a further decline in its gross margins. Previous guidance had called for a 74.8% GAAP gross margin, which would indicate a partial recovery, and Huang and chief financial officer Colette Kress have said that the goal for fiscal year 2027 is to maintain margins “in the mid-70s.”

As expected, investors closely monitored those figures on Wednesday. And Nvidia did not disappoint. The company’s GAAP gross margin rose to 75%, surpassing guidance and increasing from 73.4% in Q3, and the non-GAAP gross margin was 75.2%. Nvidia’s stock rose more than 2% in the initial phase of after-hours trading, although it quickly gave back much of those gains.

In total, GAAP net income was up 35% quarter-over-quarter and 94% year-over-year to approximately $43 billion. GAAP diluted earnings-per-share increased by 35% to $1.76 for the quarter and nearly doubled compared to fiscal 2025. Net income also saw an increase related to Nvidia’s investment in stock. Non-GAAP income, which does not include the Intel investment gains, was $39.6 billion.

The Nvidia earnings results come against a high-stakes backdrop of concerns about AI over-investment, in the form of eye-catching capital expenditures among hyperscalers including , , , , and that are engaged in a frantic AI race. A recent from Moody’s flagged that approximately $662 billion in future data center lease commitments that have not yet started remain off those companies’ balance sheets.

“Computing demand is growing exponentially,” Huang said in a statement. “Enterprise adoption of agents is skyrocketing. Our customers are competing to invest in AI compute – the factories driving the AI industrial revolution and their future growth.”

Of course, for Nvidia, a portion of that capex spending ends up in the company’s coffers to pay for its highly sought-after – and premium-priced – chips.

Full-year revenue also surges

For the full year, Nvidia revenues reached $215.9 billion, up 65% from last year; GAAP operating income was $130.4 billion and net income was $120.1 billion. In comparison, in fiscal year 2025, which ended in January 2025, Nvidia reported $130.5 billion in revenue, more than doubling the previous year’s $60.9 billion. Net income for that year was $72.9 billion and operating income more than doubled compared to the year before to $81.5 billion. Data center revenues for fiscal 2026 were $197.3 billion, up from $115.2 billion the previous year.

Throughout fiscal year 2026, revenues increased each quarter, from $44.1 billion in , to $46.7 billion in , to $57 billion in , and now to $68.1 billion in .

Last quarter, CEO Jensen Huang directly tried to about market frothiness on the with analysts.

“There’s been a lot of talk about an AI bubble,” said Huang . “From our perspective, we see something very different.”

He said the industry has undergone three structural platform shifts: from traditional CPUs to GPU-driven computing, from traditional machine learning to generative AI, and from generative AI to agentic AI. Each transition, by itself, justifies substantial investments. Huang said the first two shifts were fully funded through cost reductions and revenue growth, while the agentic AI is a new layer on top that will require investment.

CFO Kress said last quarter that Nvidia had “visibility” to $500 billion in revenue from its Blackwell and Rubin offerings from the start of the 2025 calendar year through the end of the 2026 calendar year. Kress also said that Nvidia believes total AI infrastructure investment could reach $3 trillion to $4 trillion annually by 2029 or 2030.