Nvidia Shatters Forecasts with 73 Percent Revenue Surge
Total quarterly revenue soared to $68.13 billion, with more than 91% of that haul generated by the company's data center division — home to its industry-dominant AI chips. The segment alone pulled in $62.3 billion, also clearing analyst forecasts with ease.
Net income surged 93% to $43 billion, or $1.76 per share, a dramatic leap from $22.1 billion, or $0.89 per share, recorded in the same quarter a year prior, the company disclosed.
Forward guidance proved equally commanding. Nvidia projected fiscal first-quarter revenue of approximately $78 billion, plus or minus 2% — a figure that towers above the $72.6 billion consensus estimate among analysts. Notably, the company flagged that its outlook excludes any data center revenue contribution from China.
Chief Financial Officer Colette Kress noted that hyperscalers — the cloud computing titans powering the global AI buildout — remained Nvidia's largest customer cohort, accounting for just over half of total data center revenue during the quarter.
Within the data center segment, networking revenue emerged as a standout performer, rocketing 263% year-over-year to $10.98 billion. The surge was fueled by surging demand for Nvidia's NVLink interconnect technology and Spectrum-X Ethernet switches, with fresh agreements inked alongside major clients including Meta. These components serve as the connective tissue linking hundreds of GPUs in sprawling, large-scale AI systems.
Nvidia's gaming division — once the undisputed engine of the company's growth — posted a 47% annual revenue increase to $3.7 billion, though the figure represented a 13% sequential decline from the prior quarter. Kress cautioned that supply constraints are expected to weigh on the gaming segment beginning in the first quarter of fiscal 2027 and persisting thereafter.
The automotive segment, which encompasses chips powering vehicles and robotics platforms, generated $604 million in quarterly revenue — up 6% year-over-year but falling short of analyst projections. By contrast, the professional visualization division outperformed, delivering $1.32 billion in revenue, a remarkable 159% jump from a year earlier.
On the deal front, Chief Executive Jensen Huang disclosed that Nvidia is in active discussions with OpenAI regarding a partnership agreement, expressing confidence that a deal is imminent. The two companies had unveiled a $100 billion accord in September, though the agreement remains unsigned. Nvidia's annual filing, also released Wednesday, stopped short of guaranteeing the transaction would ultimately be completed.
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