Why Nvidia Stock Is Soaring in After-Hours Trading

MrDecoder · 2026-02-26T10:34:08+00:00

Nvidia reported strong Q4 2026 results, surpassing revenue and earnings expectations, leading to a 2.2% stock price increase. With revenue of $68.1 billion and adjusted EPS of $1.62, the company continues to attract investor interest in AI stocks.

MrDecoder

2026-02-26 10:34:08

Abstract generation in progress

Investors had high hopes for what **Nvidia **(NVDA +1.44%) 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.

Image source: Getty Images.

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.

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NASDAQ: NVDA

Nvidia

Today’s Change

(1.44%) $2.77

Current Price

$195.62

Key Data Points

Market Cap

$4.7T

Day’s Range

$193.80 - $197.62

52wk Range

$86.62 - $212.19

Volume

6.6M

Avg Vol

170M

Gross Margin

70.05%

Dividend Yield

0.02%

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.

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