NVIDIA (NASDAQ: NVDA) reported record-breaking results for its third fiscal quarter ended October 26, 2025, delivering $57.0 billion in revenue, up 22% from the previous quarter and 62% year-over-year, as it continues to dominate the booming artificial intelligence (AI) hardware market. The company’s performance exceeded Wall Street’s expectations, beating analyst estimates of around $55.4 billion in revenue and $1.26 per share in earnings. Both GAAP and non-GAAP earnings per diluted share came in at $1.30, up 67% from the same period last year.
Nvidia’s gross margins held steady at 73.4% (GAAP) and 73.6% (non-GAAP), signaling that the company is maintaining profitability even as it scales up massively to meet insatiable demand for AI chips.
CEO Jensen Huang said in the earnings release:
“Blackwell sales are off the charts, and cloud GPUs are sold out. Compute demand keeps accelerating and compounding across training and inference — each growing exponentially. We’ve entered the virtuous cycle of AI.”
NEWS: NVIDIA announces financial results for the third quarter of fiscal 2026.
— NVIDIA Newsroom (@nvidianewsroom) November 19, 2025
➡️ Record revenue of $57.0 billion, up 22% from Q2 and 62% from a year ago
➡️ Record Data Center revenue of $51.2 billion, up 25% from Q2 and 66% from a year ago
Read more: https://t.co/CD1aTAztZb
Data center drives growth amid AI demand
The company’s data center division, which makes up the bulk of its business, reported a record $51.2 billion in revenue, 25% higher than the previous quarter and 66% higher than a year ago. The surge was powered by widespread AI infrastructure investments from hyperscalers and enterprise customers.
Nvidia continues to serve as the backbone of global AI, partnering with major technology and research players. During the quarter, it announced collaborations with OpenAI, Google Cloud, Microsoft, Oracle, xAI, and Anthropic, all focused on scaling AI infrastructure using Nvidia’s Blackwell chips.
Blackwell GPUs achieved the highest performance and efficiency in the SemiAnalysis InferenceMAX benchmarks, delivering 10x throughput per megawatt compared to the previous generation. Nvidia also celebrated the production of its first Blackwell wafer in the U.S. at TSMC's Arizona facility, which shows that the company is getting better at making chips in the U.S.
The company continues expanding its footprint across sectors, from AI supercomputing to telecom and robotics, with new partnerships involving Intel, Palantir, Nokia, and CoreWeave. It also revealed plans for seven new AI supercomputers, including Solstice, the U.S. Department of Energy’s largest AI system featuring 100,000 Blackwell GPUs.
Market reaction and AI bubble debate
Wall Street reacted positively to Nvidia’s results. After the announcement, shares rose by more than 5% in after-hours trading. This helped the S&P 500 futures and other major indexes, which rose by 1% overnight. Nvidia now makes up almost 7% of the S&P 500's weighting, which shows how important it has become to the performance of U.S. stocks.
Reuters reported that this quarter marked the first acceleration in Nvidia’s revenue in seven quarters, quelling investor fears of a slowdown. Analysts had worried the AI boom was unsustainable, but Nvidia’s stronger-than-expected Q4 revenue guidance of $65 billion (±2%), higher than the $61.7 billion analysts forecast, suggested demand remains strong.
On an analyst call, Huang emphasized Nvidia’s ubiquity in AI computing, saying:
“We’re in every cloud. The reason why developers love us is because we’re literally everywhere.”
Still, not all market observers are convinced. Some analysts warned that AI infrastructure spending growth could slow, while Nvidia’s heavy investments and rental agreements could pose risks if demand tapers. The company disclosed that it had $26 billion in contracts to rent back its chips from cloud partners, more than double from the previous quarter, as hyperscalers rush to secure inventory ahead of the next training cycles.
Investor returns and outlook
Through the first nine months of fiscal 2026, Nvidia has returned $37.0 billion to shareholders through buybacks and dividends and has $62.2 billion remaining under its repurchase authorization. The company will pay its next quarterly cash dividend of $0.01 per share on December 26, 2025.
For the upcoming quarter, Nvidia expects gross margins near 75% and continued strength in its data center segment. Executives project GAAP operating expenses of about $6.7 billion and a tax rate of 17%, reflecting growing profitability across the AI ecosystem.
Wall Street analysts described the results as “eye-popping,” with one calling the guidance a sign that “the upgrade cycle is not yet wobbling.” The report signals that AI infrastructure spending remains in full swing, even as energy and supply constraints challenge capacity expansion.
For the broader tech and crypto sectors, Nvidia’s results provided an immediate morale boost. Bitcoin climbed back over $91,000, while U.S. tech and AI-related stocks, including Apple, Microsoft, Amazon, and Meta, all saw gains following the report.
As Huang put it in his closing remarks, “AI is going everywhere, doing everything, all at once.”
Gunel Ismayilova
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