2025-11-19 22:59
publication
2025-11-19 22:59
The pick and shovel provider for the AI revolution once again exceeded analyst expectations by reporting quarterly results and providing a strong forecast for the current quarter. In after-hours trading, Nvidia's shares rose significantly.
In the past fiscal quarter (which Nvidia calls Q3 2026), the chipmaker recorded $57 billion in sales revenue. This result exceeds the market consensus of USD 54.92 billion. “Adjusted” earnings per share amounted to $1.30, also exceeding the median analyst forecast of $1.25.
Nominally, the Santa Clara-based company earned $31.91 billion net in three months. This is 21% more than the quarter before and 65% more than a year ago. Sales revenues increased by 22% QoQ and 62% YOY. At the same time, the gross margin increased to 73.4% compared to 72.4% a quarter earlier. These are absolutely phenomenal results, unheard of on this scale in any other industry.
– Blackwell chip sales dropped off the charts and cloud GPUs were sold out. The demand for computing power continues to accelerate, growing at an exponential rate. We have entered the virgin period of AI – CEO and founder Jensen Huang commented on Nvidia's quarterly results in his own style. – This ecosystem is scaling rapidly with more and more new models, more AI startups in more and more countries. “AI will be everywhere, doing everything, all at once,” Huang added.
This is exactly the message investors and Nvidia fans wanted to hear. Especially after a wave of skepticism regarding the future of generative artificial intelligence and enormous expenditure on the construction of further data centers has been spreading through financial markets over the past weeks. Nvidia shares were up more than 6% in after-hours trading after gaining nearly 3% during Wednesday's regular session. Its chips are used by all leading AI companies to develop new models and technologies. Nvidia's clients include: Microsoft, Amazon, Google, Oracle and Meta.
Additionally, Nvidia presented strong forecasts for the current fiscal quarter, in which revenues are expected to reach approximately USD 65 billion – significantly more than the USD 61.66 billion average expected by analysts. These are hard numbers (basically a derivative of the actual order backlog) confirming very strong demand for GPU processors, which constitute the basis for computers providing computing power for AI algorithms.
In the previous quarter, Nvidia's data center business generated $51.2 billion in revenue, accounting for nearly 90% of total sales. This is 25% more than in the previous quarter and 66% more than a year earlier. For comparison, Nvidia's original business – GPUs for PC gamers – contributed just $4.3 billion in revenue (+30% YoY).
Over the previous four quarters, Nvidia generated USD 99.2 billion in revenues, according to the financial statements of the Californian company. These are amazing results, but they pale in comparison to the market value of Nvidia itself, which before the announcement of the report for the previous quarter was approximately USD 4.4 trillion. Hence, the p/z ratio for Nvidia is currently 44.5. Such a high valuation includes expectations for at least a 2-3-fold increase in profits in the coming years, which does not have to be that easy.
There is one more impressive statistic. Nvidia included $60.6 billion in cash and cash equivalents on its balance sheet as of Oct. 26. Despite this, the quarterly dividend will amount to a symbolic 1 cent per share, which, given 23.31 billion shares, translates into an expenditure of USD 233 million per quarter. But in addition, the Santa Clara-based company buys back its own shares. Nvidia spent USD 37 billion on buybacks and dividends this fiscal year alone.
K.K
