EARNINGS REVIEW
NVIDIA, FY26 Q3 Earnings Results
Historical quarterly report · Results and outlook reflect information available at the time of that release. Actual results from subsequent quarters are not incorporated into the outlook.
Blackwell demand and data center growth increased revenue and operating income. Alongside strong growth, monitor the durability of customers' investment pace and supply capacity.
Assessment · Data center demand and earnings generation are strong. The next step is to assess whether large customer investments and supply-chain expansion continue to translate into actual revenue and cash collection. High demand is not used to assign arbitrary probabilities of target achievement.
Key management and company statements
Earnings release · Short original excerpt“Blackwell sales are off the charts, and cloud GPUs are sold out”Meaning · Blackwell sales are very strong, and cloud GPUs are sold out.
Context · This is management's description of demand, not a guarantee of future orders or revenue.
Original statement ↗01 Revenue, operating income and results versus expectations
Year over year · Revenue 35.082 → 57.006 B$ (+62.5% · +21.924 B$), Operating income 21.869 → 36.010 B$ (+64.7% · +14.141 B$).
Quarter over quarter · Revenue 46.743 → 57.006 B$ (+22.0% · +10.263 B$), Operating income 28.440 → 36.010 B$ (+26.6% · +7.570 B$), Operating margin 60.8% → 63.2% (+2.3%p).
Data Center revenue was approximately 51.2 B$, up 66% year over year and 25% quarter over quarter. Gaming revenue was approximately 4.3 B$, up 30% year over year but down 1% sequentially.
02 Earnings sustainability · From operating income to net income
GAAP gross margin was 73.4%, versus non-GAAP gross margin of 73.6%. Operating income throughout the text uses GAAP consistently, without mixing in non-GAAP figures that exclude stock-based compensation and other items.
- Operating income
- 36.010 B$
- Net non-operating income/loss
- 1.926 B$
- Income tax expense
- −6.026 B$
- Consolidated net income
- 31.910 B$
Net income of 31.910 B$ in the existing quarterly data is on a consolidated basis.
03 Cash flow quality · Net income → OCF → FCF
Company FCF deducts purchases of property, equipment and intangible assets and related principal payments from OCF. This quarter, subtracting principal payments of 0.024 B$ in addition to 23.750 B$−1.637 B$ yields 22.089 B$.
- Consolidated net income
- 31.910 B$
- Total net adjustments, including non-cash items and working capital¹
- −8.160 B$
- Operating cash flow
- 23.750 B$
- Cash CapEx
- −1.637 B$
- Additional company-defined adjustments and disclosure rounding²
- −0.024 B$
- Company-defined FCF
- 22.089 B$
¹ Total net adjustments calculated as OCF minus net income. This is not a single disclosed line item; it combines non-cash items, working capital, classification differences and other adjustments.
² Difference between company FCF and OCF minus cash CapEx. The detailed scope follows the explanation above and the original definition.
FCF versus the previous quarter · 13.450 → 22.089 B$, a 8.639 B$ improvement.
04 Financial capacity · Net debt and payment obligations
Previous-quarter net cash · 2025-07-27
Cash and liquid assets 56.791 / Borrowings 8.466 B$
Current-quarter net cash · 2025-10-26
Cash and liquid assets 60.608 / Borrowings 8.467 B$
Net debt improved by 3.816 B$ from the previous quarter. The carrying amount of current borrowings is 0.999 B$. This may differ from the principal maturity schedule.
Equity investments and share repurchases are not directly included in FCF but change ending cash and available funds. Unlisted investment assets are not added to cash equivalents.
Common definitions · Cash and liquid assets = cash equivalents + current investments and deposits. Borrowings = carrying amount of interest-bearing debt (current + non-current), excluding separate lease liabilities. This differs from total liabilities of 42.251 B$. Restricted cash, non-current securities and non-current deposits are excluded from cash and liquid assets.
05 Investment, capital allocation and cash recovery
The design-focused business model means the company's own CapEx differs from customer data center investment. Consider customer investment plans, supply-chain prepayments and purchase commitments, and inventory associated with product transitions together.
This quarter, cash CapEx/revenue was 2.9% and FCF/revenue was 38.8%. These ratios should not be used as a simple ranking of companies with different business models and FCF definitions.
06 Next-quarter and full-year outlook and implications
YoY +62.0%~+68.6% · QoQ +11.7%~+16.3%. Comparison revenue was 39.331 B$ in the corresponding prior-year quarter and 57.006 B$ in the current quarter. Growth rates were calculated from the underlying amounts.
Next-quarter revenue was projected at 65.000 B$ ±2%, and GAAP gross margin at 74.8% ±0.5%p.
RPO / Backlog
QoQ 1.900 → 2.500 B$ (+31.6% · +0.600 B$).
YoY 1.600 → 2.500 B$ (+56.2% · +0.900 B$).
Disclosed long-term remaining performance obligations. This differs from total GPU orders, purchase commitments and amounts securing supply capacity · Contract balances are not equivalent to committed next-quarter revenue or cash inflows. RPO scope differs across companies.
RPO disclosure ↗Quarterly results · CY-aligned view
Amounts in B$. The table shows all 4 quarters of the prior year and the current year's reported quarters, based on the report's CY-aligned year. Each fiscal quarter is assigned to the calendar quarter with the greatest overlap in its actual reporting period; the original FY/CY label and start and end dates are also shown. Amounts have not been recalculated into actual calendar quarters.
| CY alignment | 2024 · 4 quarters | 2025 · 3 quarters | Change this quarter | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Metric | 2024 total4-quarter totalBalances are at period end | 1QFY25 Q124-01-29 ~24-04-28 | 2QFY25 Q224-04-29 ~24-07-28 | 3QFY25 Q324-07-29 ~24-10-27 | 4QFY25 Q424-10-28 ~25-01-26 | 2025 YTD3-quarter totalBalances are at period end | 1QFY26 Q125-01-27 ~25-04-27 | 2QFY26 Q225-04-28 ~25-07-27 | 3QFY26 Q325-07-28 ~25-10-26 | QoQvs FY26 Q2 | YoYvs FY25 Q3 |
| Revenue | 130.497 | 26.044 | 30.040 | 35.082 | 39.331 | 147.811 | 44.062 | 46.743 | 57.006 | +22.0%+10.263 B$ | +62.5%+21.924 B$ |
| Operating income | 81.454 | 16.909 | 18.642 | 21.869 | 24.034 | 86.088 | 21.638 | 28.440 | 36.010 | +26.6%+7.570 B$ | +64.7%+14.141 B$ |
| Operating margin | 62.4% | 64.9% | 62.1% | 62.3% | 61.1% | 58.2% | 49.1% | 60.8% | 63.2% | +2.3%p | +0.8%p |
| FCF · Company definition | 60.725 | 14.936 | 13.483 | 16.787 | 15.519 | 61.674 | 26.135 | 13.450 | 22.089 | +8.639 B$ | +5.302 B$ |
| Operating cash flow | 64.091 | 15.345 | 14.489 | 17.629 | 16.628 | 66.529 | 27.414 | 15.365 | 23.750 | +54.6%+8.385 B$ | +34.7%+6.121 B$ |
| Cash CapEx | 3.236 | 0.369 | 0.977 | 0.813 | 1.077 | 4.758 | 1.227 | 1.894 | 1.637 | −13.6%−0.257 B$ | +101.4%+0.824 B$ |
| Net cash | 34.747 | 21.728 | 26.339 | 30.025 | 34.747 | 52.141 | 45.227 | 48.325 | 52.141 | +3.816 B$ | +22.116 B$ |
| Cash and liquid assets | 43.210 | 31.438 | 34.800 | 38.487 | 43.210 | 60.608 | 53.691 | 56.791 | 60.608 | +6.7%+3.817 B$ | +57.5%+22.121 B$ |
| Borrowings | 8.463 | 9.710 | 8.461 | 8.462 | 8.463 | 8.467 | 8.464 | 8.466 | 8.467 | +0.0%+0.001 B$ | +0.1%+0.005 B$ |
Indented rows are components of, or reference items for, the parent metric. Net cash = cash and liquid assets − borrowings. Depending on company definitions, FCF may include additional adjustments such as lease principal and therefore differ from operating cash flow − cash CapEx. See the cash flow discussion for the detailed definition.
Annual totals and year-to-date totals precede the quarters for each year. Revenue, earnings and cash flow are sums of quarterly values; operating margin equals total operating income divided by total revenue; net cash, cash and borrowings are the final quarter's ending balances. Do not make a simple annual comparison of totals covering different period lengths.
Net cash = cash and liquid assets − borrowings. A negative value indicates net debt. Changes in FCF and net cash are shown as absolute amounts in B$. Quarterly values were not adjusted to match disclosed annual totals.
Comparison bases, calculations and quarterly sources
Calculations and presentation · Amounts in B$. US disclosures in millions of dollars were preserved by dividing by 1,000. Where only cumulative cash flow was available, the preceding cumulative amount in the same fiscal year was subtracted. YoY, QoQ and margins were calculated before display rounding. Earnings growth from negative or 0 bases is shown as a sign change and/or absolute amount.
Opinions and outlook · Management quotations include short original excerpts and translations. Unless identified as earnings call transcripts, quotations come from earnings releases. Interpretations and implications are the author's judgments. No numerically unverified probabilities of achieving targets are assigned.