Nvidia is set to release its fiscal 2026 third-quarter earnings, revealing the current state of AI investment. Analysts predict earnings per share of $1.25, a 54.3% year-over-year increase, with revenue reaching $54.9 billion, up 56.4%. The report is highly anticipated, as Nvidia's performance is seen as an indicator of the overall health and growth potential of the AI sector.
Investors are keen to see if Nvidia can meet these expectations, as a failure to do so could intensify concerns about an AI bubble. Despite a strong year, with shares up over 38%, the stock has recently declined nearly 10% from its peak. The company's Q3 2026 forecast includes revenue of $54 billion (plus or minus 2%), GAAP gross margins of 73.3% (plus or minus 50 basis points), and non-GAAP gross margins of 73.5% (plus or minus 50 basis points).
Nvidia's role as a bellwether for the stock market and the AI space means its earnings will have broad implications. Factors such as data-centre demand, China export risks, and future guidance will significantly influence market reaction. A strong report could boost market confidence, while a disappointing one may pressure the tech sector.
