After the US stock market closed on Wednesday, November 19th (Eastern Time), Nvidia... Nvidia has once again released a better-than-expected quarterly report. Data shows that Nvidia's revenue for the third fiscal quarter was $57.01 billion, a year-over-year increase of 62%, exceeding market expectations of $55.19 billion; the company projects fourth-quarter revenue of approximately $65 billion, compared to market expectations of $62 billion.
Nvidia's third fiscal quarter data center Nvidia reported revenue of $51.2 billion, a 66% year-over-year increase, exceeding market expectations of $49.34 billion. Adjusted earnings per share for the third fiscal quarter were $1.30. Adjusted operating profit for the third fiscal quarter was $37.75 billion, a 62% year-over-year increase, exceeding market expectations of $36.46 billion. R&D expenses for the third fiscal quarter were $4.71 billion, a 39% year-over-year increase, exceeding market expectations of $4.66 billion.
In the earnings announcement, Nvidia CEO Jensen Huang stated that the company's latest generation of Blackwell architecture chips "sold far beyond expectations, and the cloud GPUs have also sold out."
After the earnings report was released, Nvidia, which closed up nearly 3%, saw its after-hours gains quickly expand, exceeding 5%.
Key financial data:
Revenue: Third-quarter revenue was $57.01 billion, up approximately 62% year-over-year. Analysts expected $55.19 billion, while Nvidia provided guidance of $52.92 billion to $55.08 billion. The previous quarter saw a 56% year-over-year increase.
EPS: Third-quarter non-GAAP adjusted earnings per share (EPS) were $1.30, up 60% year-over-year, compared with analysts’ expectations of $1.26 and a 54% year-over-year increase in the previous quarter.
Gross margin: The adjusted gross margin for the third quarter was 73.6%, down 1.4 percentage points year-over-year. Analysts expected 73.7%, and Nvidia’s guidance was 73% to 74%. The previous quarter’s gross margin was 72.7%, down 3 percentage points year-over-year.
Operating expenses: Adjusted operating expenses in the third quarter were $4.215 billion, up 38% year-over-year. Analysts expected $4.22 billion, and Nvidia’s guidance was $4.2 billion. The previous quarter saw a 36% increase.
Detailed business data:
Data Centers : Third-quarter data center revenue reached $51.2 billion, a 66% year-over-year increase, compared to analysts' expectations of $49.34 billion and a 56% year-over-year increase in the previous quarter.
game And AI PC: Revenue from gaming and AI PC business reached $4.3 billion in the third quarter, up 30% year-over-year, compared with analysts’ expectations of $4.42 billion and a 49% year-over-year increase in the previous quarter.
Professional Visualization: Professional visualization revenue reached $760 million in the third quarter, a 56% year-over-year increase, compared to analysts' expectations of $612.8 million and a 32% year-over-year increase in the previous quarter.
Cars and robots The company reported revenue of $592 million in the automotive and robotics business in the third quarter, up 32% year-over-year, compared to analysts’ expectations of $621.6 million and a 69% year-over-year increase in the previous quarter.
Performance guidance:
Revenue: Fourth-quarter revenue is projected to be $65 billion, plus or minus 2%, or $63.7 billion to $66.3 billion, compared to the median analyst estimate of $61.98 billion.
Gross margin: The adjusted gross margin for the fourth quarter on a non-GAAP basis is expected to be 75.0%, fluctuating by 50 basis points, or 74.5% to 75.5%, while the median analyst forecast is 74.6%.
Operating expenses: Adjusted operating expenses for the fourth quarter are expected to be $5 billion, compared with analysts’ expectations of $4.59 billion.
Nvidia reported record revenue of $57 billion in the third quarter, exceeding the company's full guidance range and more than 3% higher than analysts' expectations. Year-over-year revenue growth accelerated to 62% from 56% in the previous quarter, marking the first time in two years since the fourth quarter of fiscal year 2024 that revenue growth has accelerated compared to the previous quarter.
The data center business, which contributed nearly 90% of the revenue in the third quarter, also set a new quarterly record, exceeding analysts' expectations by nearly 4%, with the year-on-year growth rate increasing from 56% in the previous quarter to 66%.
Adjusted EPS also accelerated its year-on-year growth in the third quarter, with the year-on-year growth rate increasing from 54% in the previous quarter to 60%, the highest growth rate this fiscal year.
Looking at the earnings guidance, Nvidia's revenue guidance range for the entire fourth quarter is higher than the median of analysts' expectations. Based on the median guidance range of $65 billion, Nvidia expects its fourth-quarter revenue to set a new single-quarter record, nearly 5% higher than the median of analysts' expectations, and is expected to grow by more than 65% year-on-year, which means it is expected to maintain a growth rate of more than 60%.
However, some very optimistic Wall Street analysts had previously expected revenue of $75 billion, more than 15% higher than the midpoint of Nvidia's guidance range.
Nvidia expects its median gross margin to increase to 75.0% in the fourth quarter, up from 73.5% in the same period last year. That would be the first year-over-year gross margin growth in six quarters since the second fiscal quarter of 2025.
Nvidia says its cloud GPUs are sold out. Blackwell Ultra is now the company's leading architecture, and gaming revenue is benefiting from continued demand for Blackwell, although sales in the third quarter (H20) were not significant.
Nvidia: Last quarter was "outstanding," reaffirming its $500 billion revenue commitment.
Nvidia stated that demand continues to exceed expectations, with a surge in Agentic AI.
Nvidia says the new Rubin chip platform is progressing well and is on track for increased production in the second half of 2026.
NVIDIA: Anthropic is using our technology for the first time, and all of the company's AI models now use NVIDIA technology.
Nvidia's CFO stated during the earnings call that A100 GPUs shipped six years ago are still operating at full capacity today. The company's chips continue to maintain performance records, and the lifespan of its GPUs has been extended.
Nvidia CEO Jensen Huang stated that costs are rising, but they are managing to maintain profits; customers' financial problems are their own business, and each country will provide financing for its own (AI) infrastructure.
Huang Renxun stated that he has not seen any artificial intelligence. Foam.
Jensen Huang pointed out that AI ( artificial intelligence ) has reached a "tipping point." He also stated, "My product has had a long-standing advantage in the inference field (over competitors)."
Jensen Huang: "We first considered other alternative companies, and then turned our attention to Nvidia." The number of customers is actually growing.
Jensen Huang stated that there aren't that many chip design teams out there. Nvidia has shifted to manufacturing many components for computers, and the diversity of chip numbers and component models has exacerbated the complexity of the challenge.
In response to a question from Bernstein analyst Stacy Rasgon, Nvidia's CFO reiterated that the company is trying to keep profit margins in the middle of the 70% to 80% range.
Daily Economic News compiled publicly available information
(Source: Daily Economic News)
