Nvidia Reports $57 Billion in Q3 Revenue, Beating Expectations; Strong Blackwell Chip Sales Counter AI Bubble Concerns

Summary

Nvidia released its Q3 2026 fiscal year earnings report after the market closed on November 19, 2025, Eastern Time. Revenue reached $570.1 billion, exceeding Wall Street's expectations of $549.2 billion. Adjusted earnings per share (EPS) were $1.30, surpassing the expected $1.25. The company forecasts Q4 revenue to be around $650 billion, higher than analysts' expectations of $616.6 billion. After the earnings release, the stock price rose by more than 4% in after-hours trading.

Key Financial Data

Q3 Performance

Nvidia's Q3 2026 fiscal year (ending October 2025) financial report showed revenue of $570.1 billion, a 65% increase from the same period last year. Adjusted EPS was $1.30, with net income reaching $319.1 billion, a 65% year-over-year growth, significantly higher than the $193.1 billion in the same period last year.

The company's data center business revenue reached $512 billion, easily surpassing analysts' expectations of $490.9 billion, with a 66% year-over-year growth. Within this, the computing business generated $430 billion, and the networking business generated $82 billion.

Gaming business revenue was $43 billion, up 30% year-over-year. Professional visualization business revenue was $486 million.

Q4 Guidance

Nvidia expects Q4 revenue to be approximately $650 billion (±2%), well above Wall Street analysts' expectations of $616.6 billion, with an expected EPS of $1.43.

CEO Comments and Blackwell Chip

In the investor call following the earnings release, Nvidia founder and CEO Jensen Huang directly addressed market concerns about the AI bubble. "There has been a lot of discussion about the AI bubble lately," Huang said, "but from our perspective, we see a very different situation."

Huang pointed out that cloud GPUs are "sold out," addressing investor concerns that the company's rapidly growing sales are primarily going to a few cloud service providers (hyperscalers) who need to find end users for the chips.

Regarding the new generation of Blackwell chips, Huang stated that sales are "off the charts." Nvidia CFO Colette Kress revealed in the statement that the company's best-selling chip family is the Blackwell Ultra, the second-generation version of the Blackwell chip. She noted that most of the growth comes from initial sales of the GB300 chip.

In October, Huang mentioned that the company has $500 billion worth of AI chip orders for 2025 and 2026 combined. Kress added during the call, "This number will continue to grow."

Market Reaction and Industry Context

After the earnings release, Nvidia's stock price rose by more than 4% in after-hours trading. This year, Nvidia's stock price has cumulatively increased by about 38%, but it has fallen by about 10% since hitting a record high at the end of October.

Before the earnings release, the options market indicated that Nvidia might face a market cap fluctuation of $3200 billion, which would be the largest post-earnings market cap change for the AI giant. With Nvidia's current market cap of about $4.6 trillion, the company accounts for approximately 8% of the S&P 500 index, making its earnings results have broader market significance.

In the weeks leading up to the earnings release, major Nvidia customers Microsoft, Meta, Amazon, and Alphabet all reported their quarterly earnings and raised their capital expenditure forecasts due to AI infrastructure investments. These companies are expected to spend over $380 billion combined this year.

Industry Competition and Investment Dynamics

Notably, just one day before the earnings release (November 18), Microsoft and Nvidia announced a strategic investment of $15 billion in the AI startup Anthropic. The timing of this announcement sparked discussions about the "circular financing" model.

Previously, SoftBank Group disclosed that it had sold all of its Nvidia shares (32.1 million shares) worth $5.8 billion, and instead made an "all-in" investment in OpenAI.

Analyst Dan Ives from Wedbush expressed an optimistic view on Nvidia, citing strong signals from the Asian supply chain and significant investments from cloud giants as drivers of continued demand.

Future Outlook

Nvidia continues to solidify its dominant position in the AI infrastructure sector. Huang emphasized that "the AI era is moving full speed ahead, driving the global transition to Nvidia computing." He noted that enterprises are adopting agent AI to revolutionize workflows, and investments in industrial robots are surging with breakthroughs in physical AI. Countries have also recognized the importance of developing national AI and infrastructure.

In the gaming business, Nvidia, known for manufacturing 3D video game chips before the AI boom, saw Q3 gaming revenue reach $43 billion, a 30% year-over-year increase, demonstrating the continued growth of this traditional business.

Additionally, Nvidia repurchased $12.5 billion worth of shares in the quarter and paid $243 million in dividends.