NVIDIA Corp.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 19 November 2025: press release, CFO commentary. Guidance figures: 5 new. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue grew 22% sequentially: Revenue reached $57.0 billion, up 22% from the prior quarter and 62% from a year ago. Data Center accounted for most of the increase. Source
• Data Center drove growth: Data Center revenue was $51.2 billion, with compute at $43.0 billion and networking at $8.2 billion. Management attributed growth to accelerated computing, AI models and agentic applications. Source
• Blackwell Ultra became leading architecture: Blackwell Ultra now leads across all customer categories. Prior Blackwell architecture continued to see demand, and H20 sales were insignificant. Source
• Gross margin up sequentially, down yearly: GAAP gross margin was 73.4% and non-GAAP 73.6%, both up about one point sequentially. Management cited the shift from Hopper HGX systems to Blackwell full-scale data center solutions for the year-on-year decline. Source
• Operating expenses rose on compute costs: Non-GAAP operating expenses were $4.2 billion, up 11% sequentially and 38% year on year. Drivers were compute and infrastructure, compensation and new-product engineering. Source
• Inventory and supply commitments rose: Inventory rose sequentially and supply-related commitments reached $50.3 billion. Management said it is ordering to secure long lead-time components and support architecture ramps. Source
• Operating cash flow rose sharply: Operating cash flow was $23.8 billion, up from the prior year and the prior quarter. Cash, equivalents and marketable securities were $60.6 billion at quarter end. Source
• Returned $12.7 billion to shareholders: Shareholder returns in the quarter were $12.5 billion of share repurchases and $243 million of cash dividends. Remaining repurchase authorization was $62.2 billion at quarter end. Source

“Blackwell sales are off the charts, and cloud GPUs are sold out,”

Jensen Huang, founder and CEO of NVIDIA

Guidance

What changed from last quarter

• New guidance: Fourth-quarter fiscal 2026 guidance was given for revenue, margins, operating expenses, other income and tax rate. Source
• New: A strategic partnership with OpenAI covers deploying at least 10 gigawatts of NVIDIA systems. Source
• New: Anthropic will run and scale on NVIDIA infrastructure, initially adopting 1 gigawatt of compute capacity. Source
• New: Blackwell Ultra became the leading architecture across all customer categories during the quarter. Source
• Ended: H20 sales contributed an insignificant amount to revenue in the quarter. Source

Results and growth drivers

• Revenue grew 22% sequentially: Revenue reached $57.0 billion, up 22% from the prior quarter and 62% from a year ago. Data Center accounted for most of the increase. Source
• Data Center drove growth: Data Center revenue was $51.2 billion, with compute at $43.0 billion and networking at $8.2 billion. Management attributed growth to accelerated computing, AI models and agentic applications. Source
• GAAP and non-GAAP EPS matched: GAAP net income was $31.9 billion. Diluted EPS was $1.30 on both a GAAP and non-GAAP basis. Source

Segments and end markets

• Networking up 13% sequentially: Networking growth came from XDR InfiniBand, NVLink and Ethernet for AI. Shipment timing and supply availability varied from the prior quarter. Source
• Gaming dipped slightly sequentially: Gaming revenue was $4.3 billion, down 1% sequentially and up 30% from a year ago. Management tied the sequential change to channel inventory levels heading into the holiday season. Source
• Professional Visualization and Automotive grew: Professional Visualization revenue was $760 million, driven by DGX Spark. Automotive revenue was $592 million, up 1% sequentially on self-driving platform adoption. Source

“Compute demand keeps accelerating and compounding across training and inference - each growing exponentially.”

Jensen Huang, founder and CEO of NVIDIA

Products and customers

• Blackwell Ultra became leading architecture: Blackwell Ultra now leads across all customer categories. Prior Blackwell architecture continued to see demand, and H20 sales were insignificant. Source
• First U.S.-made Blackwell wafer: The first Blackwell wafer produced on U.S. soil was made at TSMC's Arizona facility, as Blackwell reached volume production. Source
• New Rubin CPX GPU unveiled: The company unveiled Rubin CPX, a GPU class aimed at massive-context processing. Meta, Microsoft and Oracle will use Spectrum-X Ethernet switches in their AI networks. Source

Margins and costs

• Gross margin up sequentially, down yearly: GAAP gross margin was 73.4% and non-GAAP 73.6%, both up about one point sequentially. Management cited the shift from Hopper HGX systems to Blackwell full-scale data center solutions for the year-on-year decline. Source
• Operating expenses rose on compute costs: Non-GAAP operating expenses were $4.2 billion, up 11% sequentially and 38% year on year. Drivers were compute and infrastructure, compensation and new-product engineering. Source
• Other income from equity gains: Net other income was $1.4 billion, mainly from gains on equity securities. Interest income was $624 million, up on higher cash and debt securities. Source
• GAAP tax rate higher than last year: GAAP effective tax rate was 15.9% and non-GAAP was 17.1%. Management cited smaller stock-compensation and research credit benefits relative to income growth. Source

“AI is going everywhere, doing everything, all at once.”

Jensen Huang, founder and CEO of NVIDIA

Demand and supply

• Inventory and supply commitments rose: Inventory rose sequentially and supply-related commitments reached $50.3 billion. Management said it is ordering to secure long lead-time components and support architecture ramps. Source
• Multi-year cloud agreements increased: Multi-year cloud service agreements rose to $26.0 billion, supporting research and development and DGX Cloud offerings. Source
• Receivable days eased slightly: Accounts receivable was $33.4 billion, with 53 days sales outstanding, down from 54 days. Management attributed the change to timing of cash collections. Source

Cash and shareholder returns

• Operating cash flow rose sharply: Operating cash flow was $23.8 billion, up from the prior year and the prior quarter. Cash, equivalents and marketable securities were $60.6 billion at quarter end. Source
• Free cash flow reached $22.1 billion: Free cash flow was $22.1 billion for the quarter, compared with $13.5 billion in the prior quarter, per the reconciliation table. Source
• Returned $12.7 billion to shareholders: Shareholder returns in the quarter were $12.5 billion of share repurchases and $243 million of cash dividends. Remaining repurchase authorization was $62.2 billion at quarter end. Source

Strategy and deployments

• Seven supercomputers accelerated: The company plans to accelerate seven supercomputers, including Oracle's Solstice for the U.S. Department of Energy with 100,000 Blackwell GPUs, and Equinox with 10,000. Source
• National AI infrastructure investments: The company is working with partners on U.K. AI infrastructure with a £2 billion investment. A South Korea program covers over a quarter-million NVIDIA GPUs. Source
• Networking partners adopt Spectrum-X: Meta, Microsoft and Oracle will boost their AI data center networks with Spectrum-X Ethernet switches. Arm is extending its Neoverse platform with NVLink Fusion. Source

Coming up, as management said on 19 November 2025

• Quarterly dividend payment: The next quarterly cash dividend is $0.01 per share, paid December 26, 2025, to holders of record on December 4, 2025. Source
• Uber Level 4 network launch: The Uber Level 4-ready mobility network is scheduled to start in 2027, targeting 100,000 vehicles. Source

Figures management reported

Risks management discussed

• Regulatory: Export of H20 product to China requires a U.S. government license, which the company said it was informed of in April 2025. H20 sales were insignificant this quarter.
• Operational: Supply commitments were made for long lead-time components, Blackwell demand and future architecture ramps, which management cited as the reason for ordering. Source

Earlier plans management reported on

• Met: Gross margins increased sequentially as Blackwell ramped, which management described as expected. Source
• Not stated: The prior release said the company continued to expect an exit-year non-GAAP gross margin in the mid-70% range.
• Not stated: The prior release gave full-year fiscal 2026 operating expense growth expected in the high-30% range.

Other quarters

• Q2 FY2027 earnings call
• Q1 FY2027 earnings call
• Q4 FY2026 earnings call
• Q2 FY2026 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.