NVIDIA reported its Q4 2026 earnings on Wednesday, February 25th, marking a quarterly revenue of $68.1 billion (73% YoY). The AI leader beat Wall Street estimates by a large margin of 3-4%, reinforcing investor confidence in the company and its privileged position in the AI data centre pipeline. The revenue from data centres alone surpassed $62 billion, contributing more than 91% of overall revenue.
The AI war is getting fierce as new models with superior capabilities are being launched by the big tech players rapidly. Data centres are essential to train and run these models. Hence, hyperscalers, including Google, Microsoft, and Amazon, are pouring billions of dollars into data centres. NVIDIA provides around 92% of the GPU stacks used in these centres, rendering it the most important player in AI infrastructure.
Q4 Report Highlights
Wall Street estimated that Nvidia’s earnings for the last quarter would range between $65.7-65.8 billion. But the data centre revenue broke all expectations as the demand for AI services far exceeded the available compute.
The data centre revenue increased by 75% compared to last year and 23% compared to Q3. This helped the company to achieve a record annual revenue of $215.9 billion.
The key metrics of this fiscal year compared to those of the previous:
| Metric | FY26 | FY25 | Y/Y Change |
| Revenue | $215.9B | $130.5B | 65% |
| Gross Margin | 71.1% | 75.0% | (3.9) pts |
| Operating Expenses | $23.1B | $16.4B | 41% |
| Operating Income | $130.4B | $81.5B | 60% |
| Net Income | $120.1B | $72.9B | 65% |
| Diluted EPS | $4.90 | $2.94 | 67% |
* GAAP figures
NVIDIA’s Market Dominance and Competitors
NVIDIA dominates the AI infrastructure with its cutting-edge GPUs that are getting more powerful and efficient. NVIDIA owns more than 92% of the AI GPU market and is likely to continue to do so since its CUDA software platform makes diversification hard, even for big players like Google, AWS, and Microsoft.
Competitors like AMD and Intel exist, but they fail to make a foothold in the AI GPU sector, especially in supplying advanced stacks to data centers. AMD is pushing cost-efficient chips to gain an advantage, but hyperscalers are prioritizing speed and capability over cost-efficiency. Intel is still leading the consumer CPU sector, but has missed the AI GPU hardware as their hobbling foundry dreams are squeezing profit margins.
| Competitor | Key Products | Est. AI GPU Share | Edge vs NVIDIA |
| AMD | MI300X, MI325X | ~8% | Cost/power |
| Intel | Gaudi3 | <1% | Integration |
| Custom | TPU, Trainium | Niche | Specialization |
Analyst Take on Nvidia
NVIDIA’s share price last closed at $177.19, marking a 4.16% decrease. The price fell further to $174 in the aftermarket. Many analysts see this as a profit-taking post-earnings report climb. Bank of America’s top analyst projects a 69.31% upside for Nvidia with a target price of $300, while Joseph Moore from Morgan Stanley estimates a 46.24% upside with a target price of $260. The Wall Street consensus is a 54.29% upside with a target price of $273.38.
