AI Takeaway
NVIDIA delivered exceptional FY2026 results with revenue surging 65.5% YoY to $215.9B and net income jumping 64.7% to $120.1B, driven by explosive demand for AI computing infrastructure.
Revenue
$215.94B
++65.47% YoY
EPS (Basic)
$4.93
++65.99% YoY
Gross Margin
71.1%
-3.92% YoY
Operating Income
$130.39B
++60.08% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Revenue grew 65.5% YoY from $130.5B to $215.9B in FY2026, reflecting unprecedented demand for NVIDIA's data center GPUs powering AI training and inference workloads across hyperscalers and enterprises globally.
Source: Source: 10-K Income Statement
Gross margin declined approximately 3.9 percentage points YoY to 71.1% (from 75.0%), as cost of revenue grew 91.4% — significantly faster than revenue growth of 65.5% — likely reflecting higher costs associated with new product ramps such as Blackwell architecture.
Source: Source: 10-K Income Statement
Operating income reached $130.4B (operating margin 60.4%) and operating cash flow hit $102.7B, up 60.3% YoY, demonstrating NVIDIA's extraordinary ability to convert revenue growth into cash, funding $40.1B in share buybacks and $974M in dividends.
Source: Source: 10-K Income Statement & Cash Flow Statement
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Upgrade to unlockCost of revenue grew 91.4% YoY — nearly double the revenue growth rate of 65.5% — compressing gross margin by ~390 basis points to 71.1%. If new architecture ramp costs (e.g., Blackwell) remain elevated or yields are lower than expected, margins could face further pressure in future periods.
Source: Source: 10-K Income Statement
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Upgrade to unlockReported EPS of $1.62 versus the $1.56 analyst consensus — a +3.6% beat for FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $215.94B | $130.5B | +65.47% |
Cost of Revenue | $62.48B | $32.64B | +91.41% |
Gross Profit | $153.46B | $97.86B | +56.82% |
Operating Income | $130.39B | $81.45B | +60.08% |
Net Income | $120.07B | $72.88B | +64.75% |
EPS (Basic) | $4.93 | $2.97 | +65.99% |
EPS (Diluted) | $4.90 | $2.94 | +66.67% |
R&D Expense | $18.5B | $12.91B | +43.23% |
SG&A Expense | $4.58B | $3.49B | +31.17% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $206.8B | $111.6B | +85.31% |
Current Assets | $125.61B | $80.13B | +56.76% |
Total Liabilities | $49.51B | $32.27B | +53.41% |
Current Liabilities | $32.16B | $18.05B | +78.22% |
Stockholders' Equity | $157.29B | $79.33B | +98.28% |
Cash & Equivalents | $10.61B | $8.59B | +23.47% |
Long-Term Debt | $8.47B | $8.46B | +0.06% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $102.72B | $64.09B | +60.27% |
Investing Cash Flow | $-52.23B | $-20.42B | -155.76% |
Financing Cash Flow | $-48.47B | $-42.36B | -14.44% |
Dividends Paid | $974M | $834M | +16.79% |
Share Buybacks | $40.09B | $33.71B | +18.93% |
D&A | $2.84B | $1.86B | +52.52% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 71.1% | 75.0% | -3.92% |
Operating Margin | 60.4% | 62.4% | -2.04% |
Net Margin | 55.6% | — | — |
ROE | 76.3% | — | — |
ROA | 58.1% | — | — |
Current Ratio | $3.905 | — | — |
Debt to Equity | $0.315 | — | — |
NVIDIA delivered extraordinary Q2 FY2026 results with revenue surging 85.2% YoY to $81.6B, net income tripling to $58.3B, and gross margin expanding to 74.9%, driven by insatiable demand for AI computing infrastructure.
NVIDIA reported a significant 62.5% year-over-year revenue increase in Q3 FY2026, driven by strong demand and operational efficiency, despite slight margin compression.
Other companies in Semiconductors
NVIDIA's revenue grew 65.5% year-over-year in FY2026, rising from $130.5B to $215.9B. This growth was primarily driven by surging demand for AI data center GPUs, with cost of revenue also rising sharply at 91.4% YoY to $62.5B.
NVIDIA's FY2026 10-K highlighted record revenue of $215.9B, net income of $120.1B, and operating cash flow of $102.7B — all growing over 60% YoY. However, gross margin compressed ~390 basis points to 71.1% due to elevated production costs, and the company deployed $40.1B in share buybacks alongside $52.2B in investing activities.
NVIDIA is extraordinarily profitable, reporting a net margin of 55.6% in FY2026 — meaning it kept over half of every revenue dollar as profit. Net income reached $120.1B on $215.9B in revenue, with diluted EPS of $4.90, up 66.7% from $2.94 in FY2025.
Key risks inferred from NVIDIA's FY2026 financials include gross margin pressure from new product ramps (cost of revenue grew 91.4% vs. revenue growth of 65.5%), concentration risk from AI/data center demand cycles, and geopolitical export control risks that could limit access to key markets. Supply chain dependency on third-party foundries like TSMC also remains a structural risk.
NVIDIA enters FY2027 in strong financial health, with a current ratio of 3.91, debt-to-equity of just 0.31, and stockholders' equity of $157.3B — nearly double the prior year. Operating cash flow of $102.7B provides ample resources for continued R&D investment ($18.5B in FY2026), shareholder returns, and strategic capital deployment.