NVIDIA Q3 2026 Earnings Conference Call

Summary

NVIDIA reported exceptional Q3 2026 results with record revenue of $57 billion, representing 62% year-over-year growth and $10 billion sequential increase. The company is experiencing unprecedented demand across three major platform transitions: the shift from CPU to GPU computing, the adoption of generative AI replacing classical machine learning, and the emergence of agentic AI systems. Data center revenue reached a record $51 billion, driven primarily by strong AI infrastructure demand, while networking revenue surged 162% to $8.2 billion. The company has visibility to $500 billion in combined Blackwell and Rubin platform revenue through the end of 2026, with significant momentum in GB 300 adoption now representing two-thirds of total Blackwell revenue. Major strategic partnerships were announced with OpenAI, Anthropic, AWS, and others, representing deployment of millions of GPUs across various AI factory projects. However, the company faces challenges from geopolitical constraints limiting China shipments and rising input costs that are pressuring margins, though management is working to maintain gross margins in the mid-seventies range for fiscal 2027.

Key Points

• Record Q3 revenue of $57 billion, up 62% year-over-year with $10 billion sequential growth
• Data center revenue hit record $51 billion, up 66% year-over-year driven by AI infrastructure demand
• Visibility to $500 billion in Blackwell and Rubin revenue from 2025 through end of 2026
• Three major platform shifts driving growth: CPU to GPU acceleration, generative AI adoption, and agentic AI emergence
• GB 300 now comprises two-thirds of total Blackwell revenue with seamless customer transition
• Networking revenue of $8.2 billion, up 162% year-over-year across NVLink, InfiniBand, and Spectrum X Ethernet
• China revenue constraints due to geopolitical issues impacting data center shipments
• Rising input costs creating margin pressure, working to maintain mid-70s gross margins
• Strategic partnerships announced with OpenAI, Anthropic, AWS, and others representing millions of GPUs

Action Items

• Finalize definitive agreement with OpenAI for strategic partnership and investment
• Execute Rubin platform ramp for 2026 with focus on backward compatibility
• Continue supply chain expansion and resilience efforts with TSMC and other partners
• Develop strategic partnerships with Anthropic for CUDA optimization
• Work with supply chain partners to manage rising input costs and maintain margins

Decisions

• Q4 revenue outlook set at $65 billion plus or minus 2%
• Not assuming any data center compute revenue from China in Q4 outlook
• Target to hold gross margins in mid-seventies for fiscal 2027 despite rising costs
• Continue strategic investments in AI ecosystem partners while maintaining cash flow discipline
• Proceed with Anthropic partnership including up to 1 gigawatt of compute capacity

Participants