Nvidia (NASDAQ: $NVDA) Smashes Q3 Expectations on AI Demand

Nvidia (NASDAQ: NVDA, XETRA:NVD) posted another blockbuster quarter as its fiscal Q3 results exceeded Wall Street expectations, powered almost entirely by explosive demand for its AI-focused data center chips. Revenue reached $57.01 billion, beating the $55.19 billion consensus and climbing 62% year-over-year. Adjusted EPS came in at $1.30, up 60% from last year and 24% sequentially.

The data center division once again carried the quarter with $51.2 billion in revenue, outperforming analyst estimates of $49.34 billion and rising 66% from a year ago. Nvidia highlighted record demand for its Blackwell platform, which delivers industry-leading performance and 10x throughput per megawatt compared to previous generations. CEO Jensen Huang said AI compute demand continues to accelerate across both training and inference, calling it a “virtuous cycle of AI.”

Other business segments posted mixed results. Gaming revenue grew 30% year-over-year to $4.3 billion but dipped slightly from the previous quarter. Professional visualization revenue increased 56% to $760 million, and automotive revenue rose 32% to $590 million, reflecting steady diversification outside core AI markets.

Nvidia reported adjusted operating income of $37.75 billion and adjusted net income of $31.77 billion, both well above expectations. Free cash flow hit $22.09 billion, and the company returned $37 billion to shareholders through dividends and buybacks in the first nine months of fiscal 2026.

For Q4, Nvidia guided revenue of $65 billion, well above the $61.98 billion consensus, and projected gross margins around 75%. The company expects global AI adoption to accelerate further as more startups, enterprises, and countries ramp up model development.

Shares rose 3.7% in after-hours trading following the earnings release.