SANTA CLARA, California, February 25, 2026 — Nvidia reported record quarterly revenue of $39.3 billion for the period ended January 26, up 78% year-over-year, driven by relentless demand for its AI accelerators. However, the company’s guidance for the current quarter fell short of some analyst expectations, contributing to a sharp after-hours sell-off in the stock.
Data center revenue, Nvidia’s largest segment, surged 112% to $35.6 billion, fueled by continued adoption of the Blackwell platform for training and inference workloads.
CEO Jensen Huang highlighted the strength of the AI ecosystem: “The age of AI is in full steam. Demand for Blackwell is extraordinary.” Gaming revenue rose 8% to $2.9 billion, while automotive and professional visualization segments grew modestly.
Adjusted earnings per share came in at $0.89, beating the $0.84 consensus estimate. Gross margins expanded to 78.4% from 76.7% a year earlier, reflecting favorable product mix and pricing power.
The stock fell more than 8% in extended trading after Nvidia guided current-quarter revenue to $43 billion (±2%), below the $44.1 billion average analyst estimate. The company cited typical seasonality, supply chain normalization after the Blackwell ramp, and a shift toward inference workloads that require fewer chips per model compared to training.
Huang addressed investor concerns during the earnings call: “We are seeing the transition from training to inference, and that changes the dynamics. But the overall demand for AI compute remains incredibly strong.” He reiterated confidence in long-term growth, pointing to expanding use cases in robotics, digital twins, and enterprise applications.
The results cap a remarkable run for Nvidia, whose market cap exceeded $3 trillion in 2025. The company spent $12.8 billion on capital expenditures in the quarter, primarily for AI infrastructure and next-generation chip development.
Analysts remain largely bullish, with many maintaining buy ratings despite the cautious guidance. The stock has risen more than 170% in the past 12 months but is now down 12% from its December peak.
