Nvidia (NVDA, Financial) posted better-than-expected fiscal Q4 results, with its AI-focused Data Center unit continuing to drive significant revenue growth, though at a more moderate pace than previous quarters.
For the quarter ending January 26, the company reported adjusted earnings of $0.89 per share, while revenue surged 78.8% year-over-year to $39.33 billion, surpassing Wall Street expectations.
The Data Center division remained the standout performer, delivering $35.6 billion in revenue, up 93% year-over-year and exceeding estimates of $34.1 billion. However, this growth rate cooled from 112% in Q3 and the 400% surge seen a year ago.
Other business segments saw varied results. Automotive revenue reached $570 million, while professional visualization revenue climbed 10% YoY to $511 million. Gaming revenue came in at $2.5 billion, down 14% YoY and missing expectations of $3.02 billion.
Nvidia's adjusted gross margin stood at 73.5%, in line with projections, while the company generated $15.52 billion in free cash flow during the quarter. Looking ahead, Nvidia expects Q1 FY26 revenue of $43 billion (±2%), slightly ahead of analyst estimates of $42.3 billion.
CEO Jensen Huang emphasized the rapid adoption of Blackwell GPUs, noting that AI is evolving at an unprecedented pace, with agentic AI and physical AI shaping the next wave of industry transformation.
While some analysts noted the absence of last year's “shock value,” Nvidia's performance continues to highlight strong demand in AI and high-performance computing.
