Last week, Nvidia (NVDA 1.48%) once again showed why it is the most dominant player in the artificial intelligence (AI) infrastructure space when it released fiscal 2026 fourth-quarter financial results. The results show that the company continues to see extraordinary revenue growth, as demand for its graphics processing units (GPUs) remains insatiable.
Let's take a closer look at Nvidia's fourth-quarter results and prospects to see if the stock is still a buy.
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Nvidia's Q4 revenue soars
For its fiscal Q4, Nvidia's revenue surged 73% year over year to $68.1 billion, easily surpassing the $66.2 billion consensus estimate (as compiled by LSEG). Adjusted earnings per share (EPS), meanwhile, soared 82% to $1.62, topping the $1.53 analyst consensus.
Data center segment revenue once again led the charge, climbing 75% year over year to $62.3 billion. The company said it saw strength both with training and inference deployments. Meanwhile, within its data center segment, its networking portfolio has a highlight, with revenue skyrocketing more than 3.5 times to $11 billion. The company said demand for its NVLink interconnect solution, InfiniBand, and Spectrum-X Ethernet products all hit record levels.
Cloud computing providers remain Nvidia's largest customers. It said that it expects every provider to use its Vera Rubin platform, which combines its new Rubin GPUs with its Vera central processing units (CPUs) and other networking components. Meanwhile, its sovereign nation business saw revenue triple during this past fiscal year to $30 billion. Nvidia saw no revenue from China, despite the company getting approval to sell some of its H200 chips to Chinese customers.
Nvidia's other segments were also mostly strong. Gaming revenue climbed 47% to $3.7 billion, while its professional visualization segment sales jumped 74% to $1.3 billion. Its automotive segment saw revenue edge up 2% to $604 million, although it was up 39% on the year.
The company continues to throw off an enormous amount of cash. It produced operating cash flow of $36.2 billion and free cash flow of $34.9 billion in the quarter. It ended its fiscal year with cash and marketable securities of $62.6 billion and $8.5 billion in debt.
Looking ahead, Nvidia guided for fiscal first-quarter revenue to come in around $78 billion, which would represent 77% growth. The company also said that it has secured inventory and capacity to help meet growing demand into calendar year 2027.
NASDAQ: NVDA
Key Data Points
Is the stock still a buy?
Nvidia continues to fire on all cylinders. The company's ecosystem remains a big advantage, with its CUDA software platform and networking portfolio being big reasons for its success. Meanwhile, it is no longer just selling GPUs, but complete AI infrastructure systems. Networking is the fastest-growing part of its business, led by its NVLink interconnect system.
Looking at valuation, Nvidia trades at a forward price-to-earnings (P/E) ratio of around 25 times based on the current-year consensus, which is cheap given its growth. With AI infrastructure spending still ramping up, the stock continues to be a buy.
