Key Points
Nvidia exceeded analysts' top- and bottom-line expectations for the fourth quarter of fiscal 2026.
Management forecast strong year-over-year revenue growth in Q1 2027.
Nvidia stock provides great AI exposure.
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Investors had high hopes for what Nvidia (NASDAQ: NVDA) would report with its fourth-quarter fiscal 2026 financial results this afternoon. And judging from the immediate reaction, it seems the market is pretty pleased. With the company beating analysts' expectations on both the top and bottom lines, investors are rushing to click the buy button on Nvidia stock.
As of 5:03 p.m. ET, shares of the artificial intelligence leader are up 2.2% from closing at $195.56 at the end of regular trading hours today.
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Digging into the deets of the quarter
Reporting Q4 2026 revenue of $68.1 billion, Nvidia beat analysts' expectations that it would report $66.2 billion on the top line. The company's Q4 2026 sales represent a 73% increase over the same period in fiscal 2025, a sharper year-over-year sales increase than the 62% reported in Q3 2026.
Similarly, the company provided a surprise regarding its profits. Whereas analysts had anticipated Nvidia reporting adjusted earnings per share (EPS) of $1.54, the company posted adjusted EPS of $1.62 for Q4 2026.
The company's strong financial results transcended the income statement. In Q4 2026, Nvidia reported free cash flow of $34.9 billion, a 125% increase over the $15.5 billion in free cash flow that it reported last year.
With respect to the first quarter of fiscal 2027, Nvidia forecasts revenue of $78 billion, excluding revenue from its data center business in China. Should it achieve this guidance, it will represent year-over-year sales growth of 77%.
Should investors buy Nvidia stock based on the company's strong financial report?
While Nvidia reported a strong end to fiscal 2026, investors who are exclusively focusing on these results as a basis for buying Nvidia stock are being narrow-minded. Savvy investors know better than basing a stock purchase on a company's single earnings report. In this case, though, Nvidia consistently reports strong financial results. The company is one of the premier AI stocks, and it's well worth consideration for investors seeking AI exposure.
Should you buy stock in Nvidia right now?
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
