NVIDIA’s earnings beat market expectations, once again highlighting the tailwind from AI demand and supply constraints. Attention is also focusing on the quality of its growth, including the outlook for 70% growth in fiscal 2028.
NVIDIA [NVDA], listed on the NYSE, reported revenue of $96.22 billion for the May–July 2026 quarter, up 106% from the same period a year earlier. Adjusted EPS was $2.22, while Data Center revenue was $89 billion. The stock rose about 4% in after-hours trading following the earnings release.
The figures exceeded market expectations, reversing the pattern of the stock falling on the following trading day even after the company beat estimates in its previous 4 earnings reports. Third-quarter margins, which had been expected to come in below market expectations, were 74%, in line with the company’s 74% guidance. This contributed to the stock’s initial decline, but it subsequently remained firm.
For fiscal 2028, the company offered an unusual outlook for revenue growth of about 70%. With the market expecting growth of about 44%, this suggests that the view remains firmly held that expanding demand and strengthening supply capacity will determine the ceiling for growth. Vera Rubin’s start of mass production and AWS’s plans to add GPUs also support the strengthening of supply.
Vera Rubin is scheduled to begin mass-production shipments in August and is expected to account for about 20% of Data Center revenue. Its processing capacity per gigawatt is said to be up to 30 times higher, while token costs are said to be as low as one-thirty-fifth of current levels. The company explained that Vera Rubin will serve as a pillar for generating more AI processing and revenue from limited power and land resources.