Revenue and profit hit new records
Nvidia reported another record quarter as demand for artificial intelligence infrastructure continued to accelerate. For the third quarter of fiscal 2026, revenue reached 57.0 billion dollars, an increase of 22% compared with the previous quarter and 62% year over year. GAAP and non GAAP gross margins came in at 73.4% and 73.6%, respectively, highlighting the strong profitability of its AI business.
Net income under GAAP rose to 31.9 billion dollars, up 65% from a year earlier, with diluted earnings per share of 1.30 dollars, up 67% year over year. On a non GAAP basis, net income was 31.8 billion dollars and diluted earnings per share also stood at 1.30 dollars, an increase of 60% versus the same period of fiscal 2025.
Chief executive Jensen Huang described AI demand as entering a “virtuous cycle”, pointing to exponential growth in both training and inference workloads. He said sales of the new Blackwell platform are “off the charts” and that cloud GPUs are effectively sold out, as AI deployments spread across more industries and regions.
Data center drives growth while outlook accelerates
The Data Center segment remained the core growth engine. Revenue from this business reached a record 51.2 billion dollars, up 25% sequentially and 66% year over year, reflecting heavy investment by cloud providers, enterprises and AI startups. Gaming revenue was 4.3 billion dollars, roughly flat versus the prior quarter but up 30% from a year earlier, while Professional Visualization and Automotive and Robotics delivered double digit annual growth from a smaller base.
For the fourth quarter of fiscal 2026, Nvidia expects revenue of about 65.0 billion dollars, plus or minus 2%. The company guides for GAAP gross margin of 74.8% and non GAAP gross margin of 75.0%, both with a range of 50 basis points. GAAP operating expenses are projected at around 6.7 billion dollars, with non GAAP operating expenses at about 5.0 billion dollars.
During the first nine months of fiscal 2026, Nvidia generated strong cash flow and returned 37.0 billion dollars to shareholders through share repurchases and dividends. As of the end of the quarter, the company still had 62.2 billion dollars remaining under its repurchase authorization and confirmed a quarterly dividend of 0.01 dollars per share payable on 26 December 2025.
AI partnerships, infrastructure and new platforms
Alongside the financial results, Nvidia highlighted a long list of strategic initiatives aimed at cementing its position at the center of the global AI build out. The company announced a partnership with OpenAI to deploy at least 10 gigawatts of Nvidia systems for the next generation of AI infrastructure, and is working with Google Cloud, Microsoft, Oracle and xAI to build large scale AI data centers using hundreds of thousands of GPUs.
Nvidia also revealed that Anthropic will run and scale its models on Nvidia hardware, initially adopting 1 gigawatt of compute capacity with Grace Blackwell and Vera Rubin systems. The company is collaborating with Intel on custom data center and PC products using NVLink, and plans to accelerate seven new AI supercomputers including the Solstice and Equinox systems for the US Department of Energy.
Nvidia underlined its push into networking, quantum and industrial AI with announcements such as NVQLink for hybrid quantum systems, Spectrum X Ethernet switches for AI data centers, and the launch of the BlueField 4 data center processor. In parallel, it is investing in AI infrastructure across the United Kingdom, South Korea and Germany, and expanding physical AI applications through partnerships with automakers, telecoms and robotics firms. Taken together, the record quarter and ambitious pipeline confirm that Nvidia remains a central player in the current global AI investment cycle.
