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Nvidia earnings once again delivered the kind of numbers that move global markets. The AI chip giant reported fiscal fourth-quarter results that topped Wall Street expectations on both revenue and profit, while issuing stronger-than-expected guidance for the upcoming quarter, reinforcing its dominance at the centre of the artificial intelligence boom.
For Q4, Nvidia posted revenue of $68.1 billion, up 73% year over year and 20% sequentially. Earnings per share came in at $1.62, comfortably ahead of analyst estimates of $1.53. A year ago, the company generated $39.3 billion in revenue and $0.89 in EPS, highlighting just how dramatic Nvidia’s growth trajectory has been.
Yet, as has become the norm with Nvidia earnings, the market reaction was measured. Shares initially rose about 3% in after-hours trading before flattening, a sign that expectations remain extraordinarily high.
The real headline wasn’t just the Q4 beat. It was the forward guidance.
Nvidia projected first-quarter revenue of $78 billion (±2%), well above Wall Street estimates of roughly $72-73 billion. Importantly, that forecast does not include any Data Centre compute revenue from China, effectively boxing geopolitical uncertainty into a disclosed assumption and leaving potential upside unmodeled.
In a market conditioned to expect big numbers, Nvidia didn’t just clear the bar, it raised it again.
As expected, Nvidia’s Data Centre business remained the growth engine. Revenue from the segment reached $62.3 billion, beating analyst projections and climbing 75% year over year.
Hyperscalers, including companies like Amazon, Microsoft, Alphabet, and Meta accounted for slightly over 50% of Data Centre revenue. However, Nvidia noted that growth was increasingly diversified across enterprise and other customers, suggesting the AI buildout is broadening beyond a handful of tech giants.
Breaking it down further, compute revenue grew 58% year over year, while networking revenue surged 263% to nearly $11 billion. Nvidia is no longer just selling chips, it is shipping full AI systems, networking infrastructure, and tightly integrated platforms.
The scale is beginning to resemble industrial logistics rather than a typical semiconductor cycle.
Gross margins remain an important point for investors. Nvidia reported GAAP gross margin of 75% for the quarter, a level that continues to show strong pricing power despite a massive hardware transition to its Blackwell architecture.
Full-year margins dipped compared to fiscal 2025 as the company scaled production and absorbed transition costs, but the quarterly stability reassured investors that profitability remains intact even as volumes explode.
In another important move, Nvidia announced it will begin including stock-based compensation in its non-GAAP results starting fiscal 2027. Tightening its own reporting metrics while guiding higher revenue shows that management is confident in the durability of growth.
The debate around AI spending is far from settled. Some investors question whether the current pace of capital expenditure can be sustained. Others argue that the AI infrastructure cycle is still in its early stages.
Major hyperscalers are expected to invest hundreds of billions of dollars in AI infrastructure in 2026 alone, with a substantial share of that spending flowing directly into Nvidia’s ecosystem, from advanced GPUs to networking and full-stack systems.
The key question for markets is: Are we still early in the AI buildout, or closer to the midpoint of the cycle? If it is still early, Nvidia’s growth runway could extend for several more years. If the cycle is more mature, expansion may gradually moderate.
For now, the latest earnings suggest momentum is accelerating rather than fading.
Outside its core Data Centre segment, Nvidia’s gaming revenue came in at $3.7 billion, slightly below estimates. However, reports indicate the company may soon launch its own laptop CPU, potentially competing more directly with Intel, Advanced Micro Devices, and Qualcomm.
While PC chips would not match Data Centre profitability, such a move would further cement Nvidia’s ecosystem dominance from AI supercomputing clusters to consumer gaming laptops.
Source: TradingView. Nvidia daily price chart as of 25 February 2026.
Despite blockbuster earnings, Nvidia stock has gained only modestly year-to-date compared to its explosive performance over the past two years. The stock remained trapped within a narrow range between $169. 55 and $194.49 but Wednesday’s price action broke through its minor resistance. The breakout is encouraging and suggests that a re-test of the all-time high of $212.19 is on the cards. Over the long-term, we see levels towards $245.00 as achievable.
And the main question investors would be asking is not whether Nvidia can beat, but whether it can keep surprising.
Nvidia earnings have effectively become macro events, rivalling jobs reports and inflation data in their market-moving impact. With a market capitalization above $4 trillion, even small percentage moves carry massive implications for indices and global equity flows.
The central question surrounding this earnings season has been whether AI spending is producing tangible economic returns.
Nvidia’s results suggests that demand for AI infrastructure remains robust. Inventory levels and supply commitments show the company is preparing for sustained demand beyond the next several quarters.
CEO Jensen Huang described the moment as an “agentic AI inflection point,” positioning Nvidia not just as a beneficiary of AI growth, but as the infrastructure backbone powering it.
Nvidia beat on revenue. It beat on earnings. It guided higher. It maintained margins. And it excluded China from its forward numbers, leaving room for potential upside. The only question left for investors is the one that follows every strong quarter: Can Nvidia do it again and even faster?
Professional investors looking for magnified exposure to Nvidia may consider Leverage Shares +3x Long NVIDIA ETP or -3x Short NVIDIA ETPs
Websim is the retail division of Intermonte, the primary intermediary of the Italian stock exchange for institutional investors. Leverage Shares often features in its speculative analysis based on macros/fundamentals. However, the information is published in Italian. To provide better information for our non-Italian investors, we bring to you a quick translation of the analysis they present to Italian retail investors. To ensure rapid delivery, text in the charts will not be translated. The views expressed here are of Websim. Leverage Shares in no way endorses these views. If you are unsure about the suitability of an investment, please seek financial advice. View the original at
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