Nvidia delivered excellent results for its third quarter, FY 2026

Nvidia’s Q3 revenue grew by a solid 62.5% YoY and 22% QoQ to $57.01Bn, with growth accelerating by 6.9% from 55.6% YoY growth reported in Q2. ​

Revenue handily trounced estimates by 3.5% and was the strongest beat in the last four quarters. Analysts had become conservative in the past year, understanding it had become difficult for the giant to grow as fast as it used to, but they had clearly underestimated Blackwell's demand.​ The company’s strong revenue growth reassured investors fearing an AI Bubble, with Nvidia’s CEO Jensen Huang chiming in,

Blackwell sales are off the charts, and cloud GPUs are sold out. Blackwell Ultra is ramping on all categories, with Blackwell total revenues over $100Bn so far.​

Earnings growth was also solid, with Q3 EPS coming in at $1.30, 61% higher YoY and 24% higher QoQ.

What about guidance?

$65Bn in total revenue guided for Q4-FY2026, with an estimated $59Bn in data center revenue, again beating earlier estimates of $61Bn by a wide margin. Analysts expect adjusted EPS to grow 61% YoY to $1.43 in Q4 and accelerate to 90% YoY growth to $1.53 in Q1-FY2027. For the full year, analysts expect FY2027 adjusted EPS to grow 50% YoY to $6.83 and 27% YoY to $8.65 in FY2028. At $182 Nvidia is priced at just 27x forward earnings.

Nvidia has extremely high margins because of its pricing power, and it guided gross margins significantly higher to 75% from 73% in Q3. For Nvidia, margins do fluctuate about a couple of percentage points, especially when they're ramping up, and as management said on the call the transition from the Blackwell 200s, to the 300s, and the ultras and NV72 has been seamless, and we can see that that in the margins shooting by 2% over the 73% in Q3. On base of $65Bn, 2% is a significant $1.3Bn straight to the bottom line.​

During Nvidia's GTC in October, CEO, Jensen Huang had spoken about a total committed revenue of $500Bn for Blackwells and Vera Rubin now it believes it can exceed that. Based on these estimates I'm estimating that that FY 2027 data center revenue could exceed $300Bn, versus estimates for around $270Bn. That is a giant leap for AI-kind.​

​Why is Nvidia so confident? Its ensuring that its supply-related commitments, for High Bandwidth Memory, and for CoWoS wafers, and other components, stay on schedule. Its  spending for these components has surged nearly 52% QoQ to $50.3Bn in Q3,  bolstering confidence in its ability complete and exceed the cumulative $500Bn in Blackwell and Rubin revenue.​

Why are you not afraid of a bubble, Jensen? Who's going to fund all this? Management believes that global and sovereign demand offer enough de-risking and diversification from US big tech and hyper-scalers, across geographic regions, enterprises, and startups. These will help insulate Nvidia should one customer or region slow their spending, or if power requirements are not fulfilled, which we expect to see in 2026 in the US. Coreweave had that problem, in its last quarter, pushing revenue out to 2026. ​ Each country will fund their own infrastructure, in multiple industries. ​Besides, most of the world's industries haven't really engaged agentic AI yet, which will create a ton of agentic demand. Additionally, Nvidia should get demand from autonomous vehicle companies, digital twins, physical AI for factories and digital biology start-ups for accelerated drug discovery.

For more on Nvidia, read on how Nvidia, could reach $20 Trillion in market cap by 2030.