Nvidia Revenue Tops $216B as Blackwell Ramp Lifts Data Center Sales for AI Compute

Nvidia has reported a 65% rise in revenue to $215.9 billion for its fiscal year after sales climbed to a record $68.1 billion in the fourth quarter as customers continued to build out AI infrastructure.

The company’s data center business remained the primary engine, with full-year data center revenue rising 68% to $193.7 billion and fourth-quarter data center sales reaching $62.3 billion.

Nvidia said networking revenue jumped 142% for the year, which the company attributed to the ramp-up of NVLink fabric used in Blackwell systems. Graphics revenue rose 57% to $22.5 billion, while gaming revenue grew 41% to $16.0 billion, boosted by demand for Blackwell-based GeForce RTX 50 Series products, the company said.

Profit expanded alongside the top line, with net income increasing 65% to $120.1 billion for the year, according to its annual filing. Fourth-quarter net income was $43.0 billion.

Still, the fiscal-year gross margin declined to 71.1% from 75.0% a year earlier, reflecting what Nvidia described as a transition from Hopper HGX systems to broader Blackwell data center solutions and the impact of inventory-related charges tied to U.S. export restrictions.

A central driver of that pressure was the company’s H20 line—chips designed to comply with prior U.S. export rules for China. Nvidia previously disclosed that it took a $4.5 billion charge in the first quarter of fiscal 2026 after the U.S. government informed the company that a license would be required for exports of H20 products into the China market, which Nvidia said diminished demand and left it with excess inventory and purchase obligations.

Nvidia’s annual report also underscored how concentrated its largest customers remain. For fiscal 2026, sales to one direct customer represented 22% of total revenue, while another accounted for 14%, the filing said.

The company also provided additional color on how it attributes revenue geographically after changing its methodology during the year. In the third quarter of fiscal 2026, Nvidia switched to reporting revenue based on the headquarters location of direct customers rather than shipping destination, saying it believes the approach better represents its geographic profile. Using that metric, the U.S. accounted for $149.6 billion of fiscal-year revenue, while China (including Hong Kong) was $19.7 billion, the company said.

Beyond the earnings figures, Nvidia’s 10-K detailed a series of sizable transactions and financial commitments that reflect both its efforts to broaden its ecosystem and the scale of capital flowing into AI infrastructure.

In December 2025, Nvidia entered a non-exclusive license agreement with Groq for Groq’s language processing unit technology and hired certain Groq employees. Nvidia said total consideration consisted of $13.0 billion paid at closing, plus an additional $4.0 billion (including imputed interest) payable within one year. The company recorded $14.4 billion of goodwill and a $2.5 billion developed technology intangible asset as part of the deal.

Nvidia also disclosed it is “finalizing an investment and partnership agreement with OpenAI,” while cautioning there is no assurance a transaction will be completed. The disclosure comes as external reporting has pointed to discussions around a large Nvidia investment as part of a broader OpenAI fundraising effort.

Separately, Nvidia said other income was boosted by unrealized gains in equity holdings, including gains from its previously announced investment in Intel’s common stock.

Capital returns remained aggressive. Nvidia’s board approved an additional $60.0 billion in share repurchase authorization in August 2025, and the company said it repurchased 282 million shares for $40.4 billion during fiscal 2026, leaving $58.5 billion authorized as of Jan. 25, 2026.

The annual filing also highlighted the extent to which Nvidia is supporting partners building physical infrastructure. The company said it provided $3.5 billion in “land, power, and shell guarantees” to early-stage companies—generally over multi-year periods—to support the build-out of complex data center projects.

Finally, Nvidia disclosed that CFO Colette Kress adopted a Rule 10b5-1 trading arrangement on Dec. 18, 2025, covering the sale of up to 500,000 shares through March 23, 2027.