Nvidia Earnings Beat Estimates in Q4 as AI Boom Drives 75% Jump In Data Centre Revenue

Nvidia, the world’s largest company in terms of market capitalisation, reported its fourth-quarter earnings after market hours on Wednesday, February 25. The company reported better-than-expected earnings for the fourth quarter of fiscal year 2026. This marks the 11th consecutive quarter in which Nvidia has seen a revenue rise of more than 55%, driven by demand for its AI chips from major tech companies.

The company witnessed a 75% year-on-year rise in revenue from its data centre business. This indicates the massive outlay on AI infrastructure. Nvidia’s shares also initially increased in extended trading hours but pared most of those gains later.

Nvidia Earnings: Record Data Centre Sales, Upbeat Outlook

Nvidia has reported a sharp increase in its quarterly revenue, solidifying its position in the artificial intelligence chip market.

The company's total revenue increased by 73% year-on-year to $68.13 billion from $39.3 billion a year earlier. The surge in revenue was led by its data centre business, which currently contributes more than 91% to the total revenue. Data centre revenue increased to $62.3 billion for the quarter under review, as technology companies around the world continued to accelerate their investments in AI infrastructure.

Net income nearly doubled to $43 billion from $22.1 billion in the year-ago period.

The company also issued stronger-than-expected guidance, forecasting a revenue of $78 billion for the current quarter, plus or minus 2%, well ahead of analysts’ expectations of $72.6 billion. Nvidia also said that its forecast does not include any revenue from data centre sales in China.

The stock has outperformed other trillion-dollar tech titans so far in 2026. This symbolises market confidence that Nvidia is still the primary beneficiary of the AI spending spree.

Why It Matters

Nvidia’s strong earnings further bolster its position as a market leader in the production of high-end AI chips. It remains one of the most heavily weighted stocks in the S&P 500 index. As such, its performance has major implications for the equity markets, its peers in the semiconductor industry and the overall technology sector.

According to CEO Jensen Huang, the hundreds of billions’ worth of capital expenditures now flowing into AI eventually translates into growth and turns “directly to revenues”, according to a Forbes report.

Despite a marginal dip year-to-date, Nvidia stock remains a ‘strong buy’, as per analysts, due to AI infrastructure demand. At the earnings call on February 25, CEO Jensen Huang expressed confidence in the company’s revenue growth prospects in line with the guidance for the first quarter.

In 2025, Nvidia shares delivered around 39% return, outperforming some of the major semiconductor makers like Qualcomm, STMicroelectronics and Texas Instruments. The surge in stock price was aided by strong demand for the company’s AI chips and the rollout of the Blackwell architecture. However, the stock has declined by 0.86% so far this year.