By Danny Vena, CPA
Publication Date: 2026-02-25 22:12:00
The AI chipmaker is growing like gangbusters.
When it comes to powering artificial intelligence (AI), there’s Nvidia (NVDA +1.44%), then there’s everyone else. As the leading provider of graphics processing units (GPUs) that underpin AI, Nvidia is viewed as a bellwether for AI adoption.
As such, the company’s quarterly financial report has become critically important for understanding the current state of AI. Nvidia CEO Jensen Huang just handed down the company’s financial report as the latest and most definitive update on the matter.
Image source: Nvidia.
The results are conclusive
Some investors feared that Nvidia’s financial results might stall, but sales actually accelerated. For its fiscal 2026 fourth quarter (ended Jan. 25), the company generated record revenue of $68 billion, up 73% year over year and 20% quarter over quarter. This drove adjusted earnings per share (EPS) of $1.62, which surged 82%. The results were partially driven by Nvidia’s impressive gross margin of 75%.
For context, analysts’ consensus estimates were calling for revenue of $66.2 billion and adjusted EPS of $1.54, so Nvidia cleared both hurdles with ease.
The data center segment, which includes chips used for high-performance computing, cloud computing, AI, and (as the name implies) data centers, delivered another record-setting performance. Segment revenue of $62.3 billion soared 75% year over year and 22% sequentially.
The gaming segment — which was once Nvidia’s bread and butter — also…
