NVIDIA Corporation Q3 FY2026 earnings call

Management Statement and Operational Highlights

• Revenue Growth: Delivered $57 billion in revenue, up 62% year over year and 22% sequentially. Customers are leveraging three platform shifts in accelerated computing, powerful AI models, and agentic applications.
• Customer Engagements: Partnerships with Meta, Anthropic, OpenAI, AWS, and Humane were highlighted, with collaborations for AI infrastructure and model optimization.
• Infrastructure Projects: Announced AI factory and infrastructure projects totaling 5 million GPUs, including XAI's Colossus two and Lilly's AI factory for drug discovery.
• Technology Leadership: Blackwell and Rubin platforms lead in performance, NVLink Fusion interest is growing, and Dynamo inference framework is adopted by major cloud providers, enabling better AI model performance.

Segment Performance

• Data Center: Record revenue of $51 billion, up 66% year over year. Compute grew 56% year over year driven by GB 300 ramp, while networking more than doubled. Revenue contribution from data center was significant.
• Gaming: Generated $4.3 billion in revenue, up 30% year over year, driven by strong demand.
• Professional Visualization: Registered $760 million in revenue, up 56% year over year, with growth driven by DGX Spark.
• Automotive: Brought in $592 million in revenue, up 32% year over year, primarily from self-driving solutions.
• Blackwell: GB 300 contributed roughly two-thirds of Blackwell revenue in Q3. Hopper platform had approximately $2 billion in revenue in Q3. Rubin platform on track to ramp in 2026.
• Networking: Generated $8.2 billion in revenue, up 162% year over year, with NVLink Fusion and Spectrum X Ethernet driving growth.

Guidance

• Fourth Quarter: Total revenue expected to be $65 billion ±2%, with midpoint implying 14% sequential growth driven by Blackwell architecture. GAAP and non-GAAP gross margins expected 74.875% ±50 basis points.
• Fiscal Year 2027: Aim to hold gross margins in the mid-seventies. OpEx is expected to be approximately $6.7 billion (GAAP) and $5 billion (non-GAAP). Other income/expenses are expected to be ~$500 million. Tax rate is projected at 17% ±1% excluding discrete items.

Risks

• Supply Chain: Potential constraints in memory, foundry, and power, but NVIDIA is working with partners to ensure supply chain resiliency.
• Market Competition: Intense competition in AI infrastructure, with other players possibly introducing ASICs, but NVIDIA's architecture and ecosystem provide key differentiators.

Question and Answer

Q: You talked about the $500 billion of revenue for Blackwell plus Rubin. At this time, are those still the general parameters with possibility of upside as we move forward?

A: Yeah. Thanks, Joe. I'll start first with a response here on that. Yes. That's correct. We are working into our $500 billion forecast. And we are on track for that as we have finished some of the quarters. And now we have several quarters now in front of us to take us through the end of calendar year '26. The number will grow. And we will achieve, I'm sure, additional needs for compute that will be shippable by fiscal year '26. So we shipped $50 billion this quarter. But we would be not finished if we didn't say that we'll probably be taking more orders. For example, just even today, our announcements with KSA and that agreement in itself is four to 600,000 more GPUs over three years. Anthropic is also not new. So there's definitely an opportunity for us to have more on top of the $500 billion that we announced.

Q: What are the biggest bottlenecks that could constrain your growth?

A: Well, these are all issues and they're all constraints. And the reason for that, when you're growing at the rate that we are and the scale that we are, how could anything be easy? What NVIDIA Corporation is doing obviously has never been done before. And we've created a whole new industry. On the one hand, we are transitioning computing from general-purpose and classical or traditional computing accelerated computing and AI. That's on one hand. On the other hand, we created a whole new industry called AI factories. The idea that in order for software to run, you need these factories to generate it generate every single token instead of retrieving information that was pre pre created. And so so I think this whole transition requires extraordinary scale. And all the way from the supply chain of course, the supply chain, we have we have much better visibility and control over because obviously, we're incredibly good at managing our supply chain. We have great partners that we've worked with for thirty-three years. And so so the supply chain part of it, we're quite confident. Now looking down our supply chain, we've now established partnerships with so many players in land and power and shell and and, of course, financing. These things none of these things are easy. But they're all attractable, and they're all solvable things. And the most important thing that we have to do is do a good job planning We plan up the supply chain, down the supply chain, We've established a whole lot of partners and so we have a lot of routes to market. And very, you know, very importantly, our architecture has to deliver the best value to the customers that we have. And so at this point, you know, I'm I'm very confident that NVIDIA Corporation's architecture is the best performance per TCL It is the best performance per watt and therefore, for any amount of energy that is delivered our architecture will drive the most revenues. And I think the increasing rate of our success I think that we're more successful this year at this point than we were last year at this point. You know, the the number of customers coming to us and the number of platforms coming to us after they've explored others is increasing, not decreasing. And so think the the I think all of that is just, you know, all the things that I've been telling you over the years are really coming are coming true and or becoming becoming evident.