Nvidia beat on the top and bottom lines and guided revenue above forecasts. (0:15) Blackwell GPU sees fastest ramp in company history.Moomoo is an advanced investing trading platform that integrates real-time and comprehensive data with no commission on options trading, stocks or ETFs. New users from Seeking Alpha can exclusively enjoy an 8.1% APY* account opening bonus, up to 15 free stocks, and up to $300 in cash rewards. Terms & Conditions apply, visit moomoo.com for more details.
Chapter 1: What are the highlights of Nvidia's earnings report?
Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis. Hello, today is Wednesday, February 26th, and this is a special NVIDIA earnings edition of Wall Street Lunch. Bulls can breathe again, at least for now. The market beacons were lit, and NVIDIA answered.
Chapter 2: How did Nvidia's revenue perform compared to expectations?
The AI chip giant posted fiscal fourth-quarter results and offered up guidance that were better than expected, aided in part by its Blackwell line of GPUs. That was a relief for a stock market where momentum and tech were suddenly looking vulnerable. Nvidia earned $0.89 per share on an adjusted basis as revenue surged 78.8% year-over-year to come in at $39.33 billion.
Chapter 3: What is the performance of Nvidia's data center segment?
Analysts were expecting the company to earn $0.85 per share on $38.16 billion in revenue during the quarter. Data center revenue flew past expectations, coming in at $35.6 billion compared to estimates of $34.1 billion. Adjusted gross margin came in at 73.5% for the quarter in line with estimates, while it generated $15.52 billion in free cash flow.
Chapter 4: What are Nvidia's projections for the next fiscal quarter?
Looking to the first quarter of fiscal 2026, NVIDIA expects to generate $43 billion in revenue, plus or minus 2%. Analysts were forecasting $42.05 billion in revenue. The stock, though, was choppy after hours, struggling to find firm direction.
Chapter 5: How did analysts react to Nvidia's earnings report?
Rob Izbitz, investing group leader for the SunGarden YARP portfolio, said the results lacked the positive shock value of some of last year's reports, though that suggests the stock will trade more on raw demand and supply rather than on some sort of surprise element. Seeking Alpha tech editor Chris Sciaccia put NVIDIA's numbers in perspective.
I think the numbers at first glance are pretty strong, especially considering you've seen some concerns about Blackwell demand and some imperfections. I mean, it's staggering to see a company that's generating 80% year-over-year revenue growth consistently... And in some cases more the data center, which is where Nvidia generates the majority of its revenue from is mind blowing at this point.
And it seems like there's no slowing down. The only thing that's holding it down is just the ability to make the chips. They're selling literally everything they can. So I think that's why you're kind of seeing a little bit of a muted reaction to the shares. And after hours trading, I think expectations were high.
And Nvidia beat those expectations, but they weren't the major blowouts that we'd seen in the past when people weren't really sure where Nvidia and AI were going. But still, these numbers are incredible from a raw number perspective.
NVIDIA CEO Jensen Huang said, demand for Blackwell is amazing as reasoning AI adds another scaling law. Increasing compute for training makes models smarter, and increasing compute for long thinking makes the answer smarter. CFO Colette Kress noted NVIDIA delivered $11 billion of Blackwell architecture revenue in the fourth quarter of fiscal 2025, the fastest product ramp in the company's history.
That's all for today's Wall Street Lunch. Look for links for stories in the show notes section. Don't forget, these episodes will be up with transcriptions at SeekingAlpha.com. And make sure you're getting the most out of your portfolio with quant, news, and analysis by heading to SeekingAlpha.com.
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