Nvidia(US:NVDA)2026-02-25 21:42Revenue Growth - Fiscal year 2026 revenue reached $215.9 billion, a 65% increase from $130.5 billion in fiscal year 2025[247] - Data Center revenue grew by 68% year-over-year, driven by accelerated computing and AI solutions[248] - Gaming revenue increased by 41% year-over-year, supported by strong demand for Blackwell products[248] - Professional Visualization revenue rose by 70% year-over-year, attributed to high demand for Blackwell and the launch of DGX Spark[249] - Compute & Networking revenue increased by 67% to $193,479 million in fiscal year 2026, driven by demand for the Blackwell computing platform and a 59% growth in Data Center computing[269] - Graphics revenue rose by 57% to $22,459 million, attributed to sales of the Blackwell architecture[270] - Total revenue for fiscal year 2026 reached $215,938 million, a 65% increase compared to $130,497 million in fiscal year 2025[269] Operating Performance - Operating expenses for fiscal year 2026 were $23.1 billion, up 41% from $16.4 billion in fiscal year 2025[250] - Operating income for Compute & Networking segment increased by 57% to $130,141 million, despite a $4.5 billion charge related to excess inventory[270] - Total operating expenses rose by 41% to $23,076 million, driven by a 43% increase in research and development expenses[280] - The gross margin for fiscal year 2026 was 71.1%, down from 75.0% in fiscal year 2025, impacted by the transition to Blackwell solutions[250] - Gross margin decreased to 71.1% in fiscal year 2026 from 75.0% in fiscal year 2025, impacted by the transition to Blackwell solutions and inventory charges[278] Net Income and Cash Flow - The net income for fiscal year 2026 was $120.1 billion, a 65% increase from $72.9 billion in fiscal year 2025[247] - Cash and cash equivalents increased to $10,605 million in fiscal year 2026 from $8,589 million in fiscal year 2025[289] - Net cash provided by operating activities was $102,718 million, up from $64,089 million in fiscal year 2025, reflecting higher revenue[290] Shareholder Returns - The company repurchased 282 million shares for $40.4 billion in fiscal year 2026, with an additional $60 billion share repurchase authorization approved[295] Tax and Capital Expenditures - Income tax expense increased to $21.4 billion in fiscal year 2026, with an effective tax rate of 15.1% compared to 13.3% in fiscal year 2025[285] - Capital expenditures for fiscal year 2026 were $6.1 billion, up from $3.4 billion in fiscal year 2025, with an expectation to increase further in fiscal year 2027[303] Investments and Partnerships - Investments in private companies and infrastructure funds totaled $17.5 billion, primarily to support early-stage startups in AI[251] - The company is finalizing an investment and partnership agreement with OpenAI, although completion is not guaranteed[302] - The company expects to continue investing in its ecosystem to support future growth[302] Foreign Exchange and Financial Risks - Direct exposure to foreign exchange rate fluctuations is considered minimal, as most sales are in U.S. dollars[312] - An adverse 10% foreign exchange rate change would impact income before taxes by $124 million as of January 25, 2026[315] - If the U.S. dollar strengthened by 10%, it would have an adverse impact of $180 million on accumulated other comprehensive income related to foreign exchange contracts[314] - A hypothetical 10% decrease in publicly-held equity securities would reduce their fair value by $1.8 billion as of January 25, 2026[309] - The company had $8.5 billion of senior Notes outstanding at the end of fiscal year 2026, with no financial statement risk from interest rate changes due to fixed rates[308] - A 0.5% decrease in the yield curve would decrease the fair value of the investment portfolio by approximately $0.2 billion[307] Supply Chain and Infrastructure - The company is expanding its supply chain from Asia to the U.S. and Latin America to enhance resilience and meet AI infrastructure demand[244]