Earnings Report
NVIDIA (NVDA) FY2026 Annual Earnings Report
Summary
NVIDIA's last quarter (Q3 FY2026) net income reached $31.9B, with total assets exceeding $206.8B. As the "picks and shovels" supplier of the AI era, NVIDIA's data center business accounts for approximately 85% of total revenue, making it the core winner of global AI infrastructure.
📊 Stock Price & Market Cap
Data as of: May 14, 2026
Stock Price (NVDA) $234.02 52-week range: $129.16 — $236.47
Market Cap $5.67T Shares outstanding: ~24.2B
Price Position Near 52-week High Only 1% below high of $236.47
In Plain Language
- NVIDIA's market cap of $5.67T makes it the world's most valuable company, surpassing Microsoft and Apple
- At $234.02, the stock is near its 52-week high of $236.47, and up 81% from its 52-week low of $129.16 — the market is fully buying into NVIDIA's AI story
- Unlike traditional chip companies that make money selling phone chips, NVIDIA sells GPUs needed for AI training — each worth tens of thousands of dollars and in global short supply
🏦 What Does Wall Street Think?
Data as of: May 2026 · Source: stockanalysis.com
Consensus Rating Strong Buy 37 analysts covering
12-Month Price Target $271.46 ↑ +16.0% vs. current price
In Plain Language
- Analysts are almost unanimously bullish: 36 out of 37 recommend buying, only 1 holds, 0 recommend selling
- Analysts expect NVIDIA to reach $271 over the next 12 months on average — about 16% upside from current levels
- The most bullish analyst believes NVIDIA will reach $360 in a year, believing the AI super-cycle is far from over
- Note: Analyst forecasts are for reference only. NVIDIA's stock is highly volatile, invest at your own discretion
💰 How Much Did They Earn?
The following are NVIDIA Q3 FY2026 (October 2025 — January 2026) quarterly figures:
| Metric | Q3 FY2026 (Current) | Prior Quarter (Q2) | YoY Change |
|---|---|---|---|
| Total Revenue | ~$49.3B (est.) | ~$45.0B | ↑ Continued high-speed growth |
| Gross Profit | $41.8B | ~$37.5B | ↑ ~85% gross margin |
| Operating Income | $36.0B | ~$32.0B | ↑ Strong growth |
| Net Income | $31.9B | ~$30.0B | ↑ Sustained high growth |
| EPS | $1.30 | ~$1.23 | ↑ Growing |
In Plain Language
- NVIDIA's single-quarter net income of $31.9B equals approximately $350M per day
- Gross margin of approximately 85% — for every $100 in chips sold, costs are only $15, leaving $85 as profit. This is the "monopolist's privilege"
- Operating margin also exceeds 70%, showing NVIDIA's pricing power is extreme and virtually no competitor can shake it
📊 Where Did the Money Go?
| Expense | Amount (Quarterly) | % of Revenue | Notes |
|---|---|---|---|
| Cost of Goods | ~$7.5B | ~15% | Chip manufacturing, wafer foundry costs (TSMC) |
| R&D | $4.7B | ~10% | Next-gen GPU architecture R&D (Blackwell, Rubin) |
| Capex | Relatively small | ~2-3% | NVIDIA is "fabless" — no need to build its own factories |
In Plain Language
- NVIDIA's biggest secret weapon is its asset-light model: chip design is in-house, manufacturing is outsourced to TSMC, so no need to spend tens of billions building factories
- R&D spend of $4.7B/quarter goes toward next-gen AI chips like Blackwell and Rubin, maintaining its technology lead
- Compared to Microsoft spending ~$30B per quarter on data centers, NVIDIA's capex is extremely low — that's why its margins are so astonishing
🏢 Two Major Business Segments
NVIDIA's business is divided into two segments, with Data Center as the absolute dominant force:
Data Center
AI training/inference GPUs (H100, H200, Blackwell), networking (NVLink, InfiniBand)
Revenue Share ~85% ↑ Continuously expanding
Customers Microsoft/Google/Meta ↑ World's largest tech companies
Growth Rate Explosive Growth ↑ More than doubled YoY
In Plain Language
- One of the biggest winners of the AI era: Every tech giant globally (Microsoft, Google, Meta, Amazon) is frantically buying NVIDIA's AI GPUs
- A single H100 chip sells for ~$30,000–40,000; the Blackwell series is even pricier, and there's a global shortage
- NVIDIA holds over 80% market share in AI training GPUs, and the CUDA ecosystem makes it very hard for competitors to catch up
Gaming
GeForce graphics cards, laptop GPUs, consumer products
Revenue Share ~15% ↓ Relatively shrinking
Products RTX 50 Series ↑ Latest generation
Growth Rate Moderate Growth ↑ Steady
In Plain Language
- Gaming GPUs are NVIDIA's "bread and butter," with the RTX series being gamers' top choice
- Relative to the explosive growth in data center, gaming has gone from NVIDIA's "star" to a "supporting role"
- But the gaming business remains solidly profitable, providing NVIDIA with a stable cash flow base
🏦 How Strong is the Balance Sheet?
| Metric | Q3 FY2026 Quarter End | Notes |
|---|---|---|
| Total Assets | $206.8B | Total company assets (cash + equipment + investments, etc.) |
| Cash & Equivalents | $10.6B | Cash and cash equivalents on hand |
| Long-term Debt | $8.5B | Long-term borrowings, very low relative to net income |
| R&D Spend | $4.7B/quarter | Continued heavy investment in next-gen chips |
In Plain Language
- Note: Book value of $206.8B is far below NVIDIA's market cap of $5.67T — the gap reflects the market's premium valuation on future earnings power
- Cash of $10.6B vs. long-term debt of $8.5B means NVIDIA is net cash positive (more cash than debt) — extremely healthy finances
- With $31.9B in quarterly net income, NVIDIA could pay off its $8.5B in debt in less than a month
📈 What Changed vs. Last Quarter?
Improvements
- Profits continue to set new records: Net income of $31.9B, breaking records every quarter
- Gross margin stays elevated: ~85% gross margin shows pricing power hasn't weakened
- Blackwell shipments accelerating: Next-gen AI chip demand exceeded expectations, orders overflowing
Things to Watch
- Competition is intensifying: AMD, Intel, and in-house chips from Google/Meta are all catching up
- Supply chain risk: Heavy reliance on TSMC; geopolitical risks cannot be ignored
- Export restriction impact: US chip export controls to China may affect some market revenue
📅 Annual View: FY2026 Full-Year Highlights
| Metric | FY2025 Full Year | FY2026 Q3 Quarter | Trend |
|---|---|---|---|
| Total Assets | ~$85.0B | $206.8B | More than doubled |
| Quarterly Net Income | ~$15.0B/quarter | $31.9B | More than doubled |
| Quarterly Gross Margin | ~75% | ~85% | +10 percentage points |
| Long-term Debt | ~$8.5B | $8.5B | Stable |
| R&D Spend/Quarter | ~$2.5B | $4.7B | Significantly increased |
In Plain Language
- NVIDIA's growth speed is rare in tech history — total assets doubled in one year, profits doubled too, a direct reflection of the AI demand explosion
- Gross margin rising from ~75% to 85% shows that as AI GPU supply remains tight, NVIDIA's pricing power is actually strengthening
- R&D spending almost doubled; the next-gen Rubin architecture chip is in development — NVIDIA is working hard to maintain its technology generation gap
🎯 Key Points for Investors
1
The "Picks & Shovels" of the AI Era
In a gold rush, the most profitable business isn't the miners, it's the shovel sellers — NVIDIA is the shovel seller of the AI era
2
Deep CUDA Moat
The CUDA ecosystem built over 15 years makes it very hard for developers and enterprises to migrate to competing platforms
3
Valuation is Already High
The $5.67T market cap already reflects substantial future growth expectations; if AI investment slows, there would be significant stock price pressure
4
Geopolitics is the Biggest Risk
The ongoing US-China chip war means export control policy changes will directly affect NVIDIA's China market revenue