Nvidia's Rise with a Strong Balance Sheet: Here are the Details

Nvidia's Strong Performance and Expectations

Nvidia (NVDA) drew attention with its fiscal year 2026 third-quarter results. The company generated $57 billion in revenue for the quarter ending October 26, 2025. This figure represents a 22% increase compared to the previous quarter and a 62% increase year-over-year. Net income rose to $31.9 billion, while diluted earnings per share stood at $1.30. These strong results outperformed Wall Street's expectations.

Growth in Data Centers and Other Business Segments

A significant portion of Nvidia's successful performance came from its data center division. Data center revenues reached $51.2 billion, marking a 25% increase on a quarterly basis and a 66% increase on a yearly basis. In the gaming sector, revenues amounted to $4.3 billion, reflecting a 30% annual increase. The professional visualization segment also saw a 56% year-over-year growth, with revenues reaching $760 million. The automotive sector generated $592 million in revenue, representing a 32% increase.

Explosion in Blackwell Sales

Nvidia's new Blackwell platform provided the highest performance and efficiency in industry benchmarks. CEO Jensen Huang noted that sales of this platform reached record levels and cloud GPUs were completely sold out. He emphasized the rapidly increasing computational needs in training and inference processes, referring to it as the "virtuous cycle of artificial intelligence."

Future Expectations and Strategic Partnerships

The company has projected revenue expectations for the fourth quarter of fiscal year 2026 to be around $65 billion, surpassing Wall Street's estimate of $61.6 billion. A GAAP gross margin of 74.8% is anticipated. Additionally, a strategic partnership with OpenAI aims to establish at least 10 gigawatts of NVIDIA systems. Collaborations with Google Cloud, Microsoft, Oracle, and xAI intend to expand AI capabilities in the United States.

In conclusion, Nvidia is not only breaking financial records but is also becoming an indispensable player globally in the artificial intelligence infrastructure.