Nvidia Reports Record Q3 Revenue, Projects Strong Q4 Growth

Nvidia, the leading AI chipmaker, has delivered a remarkable earnings report for the third quarter of fiscal year 2026, showcasing record revenue figures. For the quarter ending on October 26, 2025, the company reported revenue of $57.0 billion, reflecting a 22% increase from the previous quarter and a substantial 62% rise compared to the same period last year.

The company’s gross margins for this quarter stood at 73.4% on a GAAP basis and 73.6% on a non-GAAP basis. In addition to revealing its impressive Q3 results, Nvidia has provided optimistic projections for the fourth quarter of fiscal 2026. The company anticipates revenue of approximately $65.0 billion, with a margin of plus or minus 2%. Projected gross margins for Q4 are estimated at 74.8% and 75.0% for GAAP and non-GAAP, respectively.

Nvidia’s operating expenses are expected to be around $6.7 billion on a GAAP basis and $5.0 billion on a non-GAAP basis, as stated in their press release. Moreover, the company anticipates approximately $500 million in other income and expenses, excluding gains and losses from non-marketable and publicly held equity securities.

Market Reaction and Future Outlook

The strong earnings report has sparked renewed interest among investors, with Nvidia’s shares rising by more than 3% following the announcement. This surge in stock value comes as analysts express concerns about a potential AI bubble, putting Nvidia, often viewed as the industry bellwether, under scrutiny. The company reported a profit of $31.9 billion during the quarter, highlighting its dominance in the AI sector.

Nvidia’s revenue this quarter significantly exceeded its earnings from the same period last year, with an increase of approximately 60%. The company also expects a GAAP tax rate of 17.0%, plus or minus 1%, excluding any discrete items. With a valuation surpassing $4.5 trillion, Nvidia continues to solidify its position as a leader in the technology landscape, particularly in AI.

As the fiscal year progresses, investors and analysts alike will be closely monitoring Nvidia’s performance and its ability to navigate challenges posed by market speculation. The forthcoming quarter will be critical in determining whether the company’s growth trajectory remains on track amidst these discussions of an AI bubble.