Image Source: TradingView
By Brian Nelson, CFA
Nvidia (NVDA) recently announced fourth quarter fiscal 2026 results with revenue and non-GAAP earnings per share exceeding the respective consensus forecasts. The company posted record revenue for the fourth quarter of $68.1 billion, up 20% sequentially and up 73% from the year-ago period. Data Center revenue in the quarter was $62.3 billion, up 22% sequentially and up 75% from the same period a year ago. For the quarter, GAAP and non-GAAP gross margins were 75.0% and 75.2%, respectively, while GAAP and non-GAAP earnings per share were $1.76 and $1.62, respectively.
Management had the following to say about the results:
Computing demand is growing exponentially — the agentic AI inflection point has arrived. Grace Blackwell with NVLink is the king of inference today — delivering an order-of-magnitude lower cost per token — and Vera Rubin will extend that leadership even further. Enterprise adoption of agents is skyrocketing. Our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth.
During fiscal 2026, Nvidia returned $41.1 billion to shareholders in the form of buybacks and cash dividend payments. Looking to the first quarter of fiscal 2027, Nvidia expects revenue to be $78 billion, plus or minus 2%, well above the consensus estimate of $72 billion at the time and a forecast that does not assume any Data Center compute revenue from China. GAAP and non-GAAP gross margins are expected to be 74.9% and 75.0%, respectively, plus or minus 50 basis points. In the quarter, GAAP and non-GAAP operating expenses are expected to be approximately $7.7 billion and $7.5 billion, respectively. Nvidia ended the quarter with $62.6 billion in cash and marketable securities versus $8.5 billion in short- and long-term debt. We continue to like Nvidia in the Best Ideas Newsletter portfolio.
—–
Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not a member? Subscribe today. The first 14 days are free.