NVDA 2026 Q3

Q3 revenue reached $57 billion, up 62% year over year, with a record sequential increase of $10 billion (22%), the largest sequential dollar jump in company history.

Per Colette Kress, Chief Financial Officer

Management raised visibility on Blackwell and Rubin revenue to a cumulative $500 billion through the end of calendar 2026, with additional confirmed orders (Saudi Arabia, Anthropic) suggesting upside beyond that figure.

Per Colette Kress, Chief Financial Officer

Management stated that demand for AI infrastructure continues to exceed its own expectations, with clouds sold out and full utilization across GPU generations, signaling demand running ahead of prior planning.

“Demand for AI infrastructure continues to exceed our expectations.”— Colette Kress, Chief Financial Officer

Q4 guidance of $65 billion implies 14% sequential growth, a deceleration from the record 22% sequential growth delivered in Q3, though still described as driven by continued Blackwell momentum.

Per Colette Kress, Chief Financial Officer

Dollar-per-gigawatt content has risen each generation, from roughly the low $20 billions for Hopper to about $30 billion-plus for Blackwell, with Rubin expected to be higher still, reflecting increasing value capture per generation.

Per Jensen Huang, Chief Executive Officer

Networking revenue grew 162% year over year and more than doubled, outpacing the 56% year-over-year growth in compute, driven by the onset of NVLink scale-up and Spectrum X/Quantum X adoption.

Per Colette Kress, Chief Financial Officer

Sizable H200 purchase orders in China never materialized this quarter due to geopolitical issues and an increasingly competitive local market, resulting in only about $50 million in H200 sales versus prior expectations of larger orders.

Per Colette Kress, Chief Financial Officer

NVIDIA announced a new agreement with the Kingdom of Saudi Arabia for an additional 400,000-600,000 GPUs over three years, expanding sovereign AI infrastructure demand beyond the previously disclosed $500 billion forecast.

Per Colette Kress, Chief Financial Officer

Anthropic is adopting NVIDIA's architecture for the first time, with an initial compute commitment of up to one gigawatt using Grace Blackwell and Vera Rubin systems, marking entry into a previously untapped major AI lab customer.

Per Jensen Huang, Chief Executive Officer

GB300 crossed over GB200 in the quarter, now contributing roughly two-thirds of total Blackwell revenue, with management describing the transition as seamless and already driving customer growth ahead of expectations.

Per Colette Kress, Chief Financial Officer

The Rubin platform has received silicon back from supply chain partners and is executing bring-up ahead of its planned 2026 ramp, with the ecosystem now described as ready for a fast ramp.

Per Colette Kress, Chief Financial Officer

NVIDIA introduced Rubin CPX, a new product line targeting long-context inference workloads, representing a new product category expected to launch next year.

Per Jensen Huang, Chief Executive Officer

Ethernet GPU attach rates are now roughly on par with InfiniBand, a shift from InfiniBand's prior dominance in AI networking deployments.

Per Colette Kress, Chief Financial Officer

Gross margins rose sequentially to 73.4% GAAP / 73.6% non-GAAP, exceeding prior outlook, due to improved data center mix, better cycle time, and cost structure improvements.

Per Colette Kress, Chief Financial Officer

For fiscal 2027, management flagged that input costs are rising, a new headwind versus this year, and said the company is now working just to hold gross margins in the mid-seventies rather than expecting further improvement.

“input costs are on the rise but we are working to hold gross margins in the mid-seventies”— Colette Kress, Chief Financial Officer

Operating expenses accelerated, up 8% sequentially GAAP and 11% non-GAAP, driven by higher infrastructure compute spend, compensation, and engineering development costs to support the next architecture ramp.

Per Colette Kress, Chief Financial Officer

The non-GAAP tax rate came in just over 17%, above the prior guidance of 16.5%, due to stronger-than-expected U.S. revenue mix.

Per Colette Kress, Chief Financial Officer

Management said the number of customers coming to NVIDIA after exploring alternative (non-GPU) architectures is increasing, not decreasing, indicating strengthening competitive position versus ASIC alternatives.

“The number of customers coming to us after exploring alternatives is increasing, not decreasing, and that trend is continuing.”— Jensen Huang, Chief Executive Officer

China's data center compute market was described as increasingly competitive, contributing alongside geopolitical restrictions to the failure of expected large H200 orders to materialize this quarter.

Per Colette Kress, Chief Financial Officer

Geopolitical restrictions continue to prevent NVIDIA from shipping more competitive data center compute products to China, and guidance again assumes zero China data center compute revenue, unchanged from last quarter's cautious assumption.

Per Colette Kress, Chief Financial Officer

NVIDIA is working toward a definitive agreement with OpenAI to help build and deploy at least 10 gigawatts of AI data centers, alongside an opportunity to make a new strategic investment in the company.

Per Jensen Huang, Chief Executive Officer

NVIDIA announced a new strategic investment and technology partnership with Anthropic, the first time Anthropic will run on NVIDIA architecture, with an initial commitment of up to one gigawatt of compute.

Per Jensen Huang, Chief Executive Officer

Inventory grew 32% quarter over quarter and supply commitments rose 63% sequentially, which management said reflects preparation for significantly greater growth ahead versus prior quarters' pace of build-up.

Per Colette Kress, Chief Financial Officer

Analyst aggregate 2026 CapEx estimates for top hyperscalers have risen to roughly $600 billion, over $200 billion higher than at the start of the year, indicating an accelerating infrastructure spending environment.

Per Colette Kress, Chief Financial Officer

The CEO directly addressed growing external narratives of an 'AI bubble,' stating management sees a fundamentally different picture of sustained demand, a notable tone shift to counter market skepticism.

“There's been a lot of talk about an AI bubble. From our vantage point, we see something very different.”— Jensen Huang, Chief Executive Officer