NVIDIA Corporation Q4 FY2026 earnings call

• Delivered record revenue, operating income, and free cash flow in Q4. Total revenue $68 billion, up 73% YOY.
• Demand for Blackwell architecture strengthens, inference deployments grow.
• Networking revenue was a standout, up more than 3.5x YOY in Q4.
• Sovereign AI business more than tripled YOY in fiscal 2026.
• Unveiled Rubin platform at CES, shipped first samples to customers.
• Gaming revenue driven by strong Blackwell demand and improved supply.
• Professional visualization revenue crossed $1 billion for the first time.
• Automotive revenue driven by robust demand for self-driving solutions.

Data center: Q4 revenue $62 billion, up 75% YOY and 22% sequentially, full-year data center revenue $194 billion, up 68% YOY. Networking: Q4 revenue $11 billion, up over 3.5x YOY, full-year networking revenue over $31 billion, up more than 10x since 2021. Gaming: Q4 revenue $3.7 billion, up 47% YOY. Professional visualization: Q4 revenue $1.3 billion, up 159% YOY. Automotive: Q4 revenue $604 million, up 6% YOY

• Total revenue expected to be $78 billion plus or minus 2% for Q1.
• Gap and non-gap gross margins expected to be 74.9% and 75% respectively, plus or minus 50 basis points.
• Full-year gross margins expected in the mid-70s.
• Gap and non-gap operating expenses expected to be approximately $7.7 billion and $7.5 billion respectively, including stock-based compensation expense of $1.9 billion.
• Full-year non-gap operating expenses expected to grow in the low 40s YOY.
• Full-year fiscal year 27 gap and non-gap tax rates expected to be in between 7 and 19% excluding discrete items and material changes to tax environment.

• Competitors in China bolstered by recent IPOs have potential to disrupt global AI industry long term.
• Supply constraints to be headwind to gaming in Q1 and beyond.
• Uncertainty regarding imports of H200 products into China and whether any will be allowed.

Q: Vivek Arya with Bank of America Securities asked about confidence in customers' ability to continue growing CapEx and NVIDIA's growth if CapEx doesn't grow.

A: Jensen said confident in customers' cash flow growing as compute equals revenues in new AI world.

Q: Joe Moore with Morgan Stanley asked about role of investments and balance sheet in growing NVIDIA's position in ecosystem.

A: Jensen said investments focused on expanding and deepening ecosystem reach.

Q: Harlan Suhr with JP Morgan asked about networking spectrum runway.

A: Jensen said networking is extension of AI infrastructure platform and growing fast.

Q: CJ Muse with Cantor Fitzgerald asked about future roadmap and customized silicon.

A: Jensen said CUDA architecture is effective, and will extend architecture with Grok.

Q: Stacy Raskin with Bernstein Research asked about sequential growth and gaming.

A: Colette said Rubin ramp and gaming supply constraints discussed.

Q: Atif Malik with Citi asked about importance of CUDA with inference workloads.

A: Jensen said inference equals revenues for customers and CUDA enables high performance.

Q: Ben Reitzes with Milius Research asked about gross margins sustainability.

A: Jensen said delivering generational leads is key to sustaining gross margins.

Q: Antoine Chikaban with New Street Research asked about space data centers.

A: Jensen said economics poor now but improving, with applications in imaging.

Q: Mark Lipakis with Evercore ISI asked about revenue diversification and non-hyperscalers.

A: Colette and Jensen said diversity of customer base is strength.

Q: Aaron Rakers with Wells Fargo asked about importance of Vera CPU.

A: Jensen said Vera designed for high data processing in AI pipeline.

Q: Tim Arcuri with UBS asked about capital deployment and share repurchases.

A: Colette said capital return carefully considered with stock repurchases and dividends.

Q: Jim Schneider with Goldman Sachs asked about key application areas driving inflection.

A: Jensen said agentic AI and physical AI are key with compute driving revenues.