Nvidia (NVDA) reported another quarter of record-breaking results and provided a strong outlook, reflecting its central role in the global AI boom. Following the earnings release, NVDA stock rose more than 3% in after-hours trading. The chipmaker’s better-than-expected guidance may have helped ease fears of an AI bubble.
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For the third quarter of Fiscal 2026, adjusted earnings per share came in at $1.30, which surpassed analysts’ consensus estimate of $1.26 per share. The reported figure has jumped 60% from the prior-year quarter.
In addition, the company delivered revenue of $57 billion, up 62% year-over-year. This beat the analysts’ estimates of $54.9 billion.
The standout performer was Nvidia’s Data Center segment, which generated revenues of $51.2 billion, up 66% from the same quarter last year. CEO Jensen Huang attributed the performance to rising demand for AI infrastructure, noting that “Blackwell sales are off the charts, and cloud GPUs are sold out.”
Outlook for Fiscal Q4
Looking forward, management has provided the following guidance for Q4 2026:
- Revenue of $65 billion (+/- 2%) versus analysts’ estimates of $61.84 billion
- Adjusted gross margin of 75% (+/- 0.5%)
- Adjusted operating expenses of $5 billion
Is NVDA a Strong Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 37 Buys, one Hold, and one Sell assigned in the past three months. Further, the average NVDA price target of $243.09 per share implies 30.18% upside potential.
However, it’s worth noting that estimates will likely change following today’s earnings report.
