NVIDIA Earnings: Good or Bad?

The big quarterly release investors have been waiting on finally arrived with NVIDIA’s NVDA print now out, undoubtedly reflecting the most important of the Q4 cycle yet again. Though the company remains a late reporter, it goes without saying that its results have largely dictated market sentiment for years now, particularly so as companies continue to shell out billions for the magical GPUs behind the broader AI buildout.

Though the company remains the go-to AI stock, shares haven’t seen much momentum relative to its momentum-filled history over recent years, up roughly 2.5% over the last three months.

NVIDIA Earnings

NVIDIA posted a double-beat relative to our consensus expectations yet again, with adjusted EPS of $1.62 growing 82% year-over-year alongside record sales of $68.1 billion that shot an impressive 73% higher.

Below is a chart illustrating the company’s immense sales growth over the past year. It’s certainly extraordinary to see a company of its size post sales growth rates of this size, mostly driven by the enduring AI frenzy.

Image Source: Zacks Investment Research

But as usual, what everybody really cared about was the Data Center results, which again showed a red-hot demand backdrop. Data Center sales of $62.3 billion reflected a record, up 75% year-over-year and 22% sequentially.

Jensen Huang, on the results –

‘Enterprise adoption of agents is skyrocketing. Our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth.’

Below is a chart illustrating NVIDIA’s Data Center sales on a quarterly basis.

Image Source: Zacks Investment Research

He’s certainly spot on about the investments pouring into the broader AI buildout, underpinned by recent CapEx forecasts from fellow Mag 7 member Meta Platforms META.

Specifically, META forecasts total FY26 expenses in a band of $162 - $169 billion, of which the majority is allocated to infrastructure costs. Higher compensation for key talent to support the buildout is the second-biggest contributor to its FY26 expenses, underscoring how high a priority it remains for the company.

Further, NVIDIA and Meta Platforms were also in the news again recently thanks to an announcement that deepens their relationship. The announced partnership will enable the large-scale deployment of NVIDIA CPUs and millions of NVIDIA Blackwell and Rubin GPUs, as well as the integration of NVIDIA Ethernet switches for Meta Platforms’ Facebook Open Switching System platform.

In other words, Meta Platforms will deploy a massive number of NVDA’s AI chips and technology to power its data center computing needs, helping META achieve its lofty AI goals.

Going back to NVIDIA, shares still remain at more than fair valuation levels despite the huge run over recent years, with the AI-fueled growth keeping multiples in check. Shares presently trade at a 26.2X forward 12-month earnings multiple, nowhere near the 40.8X five-year median and reflecting just a 15% premium relative to the S&P 500.

NVIDIA shares have traded at much higher multiples throughout most of the last five years, with 2021-2022 also refelcting a time when the AI story had yet to be fully realized.  

Image Source: Zacks Investment Research

Keep in mind that current consensus expectations allude to 60% EPS growth in its newly-started FY27 (last night’s release wrapped up its FY26), with sales also expected to be up an impressive 47%.

Putting Everything Together

While shares have so far had a weak reaction to the results, the reality remains that the company is continuing to see massive growth from the AI buildout, underpinned by CapEx plans we’ve seen from fellow Mag 7 member Meta Platforms META, just for one example.

NVIDIA NVDA also now sports a bullish Zacks Rank #1 (Strong Buy), with EPS expectations remaining bullish not just for its newly-started FY27 but its FY28 as well.

Image Source: Zacks Investment Research

Just Released: Zacks Top 10 Stocks for 2026

Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.

From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.

Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Source Zacks-com