Nvidia Results Review - August 27, 2026
By Kathleen Brooks, Research Director UK
Market Overview
Trading on Thursday is significantly influenced by Nvidia's impressive earnings report. US stock futures indicate a higher opening, particularly in tech stocks, with Nasdaq futures suggesting a 0.8% gain. In contrast, European indices are mostly lower, with the FTSE 100 being the weakest due to declining oil prices, which have dropped 7% this week.
Nvidia's Earnings Highlights
Nvidia reported remarkable revenues of $96.22 billion for the last quarter, surpassing expectations of $92.17 billion and doubling the revenue from Q2 2025. Net income also doubled year-over-year to $53.95 billion, translating to $2.22 per share, up from $1.87 a year ago. The company forecasts future revenues to exceed $100 billion this quarter, with expectations of reaching $108 billion, significantly higher than analyst predictions.
Additionally, Nvidia announced a $26 billion share buyback program and a dividend for shareholders, contributing to a more than 5% surge in its stock price in overnight trading.
Drivers of Revenue Growth
The substantial revenue growth is attributed to an expanding customer base. Nvidia's CEO, Jensen Huang, noted a shift from reliance on a single lab for AI development to multiple labs, marking a "golden age for AI." Revenue from Nvidia Cloud customers and industrial clients has surged to $40.3 billion, more than doubling in a year, while hyperscalers contributed $48.7 billion.
Concerns regarding Nvidia's equity investments in AI companies have been alleviated, as these investments yielded a $7.8 billion gain last quarter. Despite worries about potential risks, supporters argue that Nvidia's strong cash flow allows for strategic investments to enhance the global AI ecosystem.
Impact on the AI Trade and Stock Market
Nvidia's impressive results are expected to bolster the AI trade and provide a boost to the US stock market, which has faced volatility in recent months. The company's commitment to double its supply commitments to $279 billion, primarily for memory costs, is also positive news for its suppliers, including SK Hynix, Samsung, and Micron, with the latter seeing a 3% rise in share price post-report.
If the stock rally continues, Nvidia's share price could surpass the $220 mark, potentially reaching the $235 highs from May.