The Most Jaw-Dropping Number You May Have Missed From Nvidia’s Latest Earnings Report | The Motley Fool

Nvidia (NVDA 0.97%) rocketed as much as 6.5% higher in after-hours trading on Nov. 19 after reporting third-quarter fiscal 2026 results and issuing fourth-quarter guidance.

While some investors may have been focused on the revenue and earnings per share (EPS) beats, the most jaw-dropping number of the report was hiding in plain sight.

Here’s what blew me away about Nvidia’s recent quarter, and why the artificial intelligence (AI) growth stock remains a great buy now.

Nvidia’s revenue growth is mostly profit

Nvidia grew revenue by $21.92 billion compared to the same quarter last year, but the cost of revenue grew by just $6.23 billion, and operating expenses only grew by $1.17 billion.  This means that Nvidia is converting the bulk of additional revenue into operating income.

Despite fears that Nvidia’s margins would compress due to competition and increased research and development spending, Nvidia’s operating margin was actually higher this quarter than in Q3 of fiscal 2025. More importantly, Nvidia converted a staggering 56% of revenue into after-tax net income.

With $31.91 billion in net income generated in the quarter, Nvidia will likely eclipse Alphabet within the next year as the most profitable U.S. company — and probably the most profitable company in the world unless oil prices, and, in turn, Saudi Aramco‘s profits surge.

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