Wedoany.com Report on Feb 27th, NVIDIA released its latest financial report, with its networking business performing exceptionally well, becoming a key factor driving its overall performance growth. In the fourth fiscal quarter ending January 25, 2026, the company's total revenue reached $68.1 billion, a sequential increase of 20%. Among this, networking products contributed $11 billion in revenue, a year-over-year increase of 3.5 times.
Chief Financial Officer Colette Kress stated that the networking business was the highlight of the quarter. For the entire fiscal year, NVIDIA's networking business revenue exceeded $31 billion, representing a growth of over 10 times compared to the year it acquired Mellanox. Kress told investors: "Demand for both scale-up and scale-out technologies reached record levels, driven by the adoption of the NVL72 switch, with Grace Blackwell systems contributing approximately two-thirds of the data center revenue."
In the fourth quarter, NVIDIA made several advancements in the networking field, including launching the BlueField Astra unified control plane and the CUDA Tile GPU management solution. Kress also mentioned that collaboration with Amazon Web Services integrated NVLink into custom chips, enhancing network interconnectivity. Ethernet-based scale-up and scale-out momentum is strong, with customers working to unify distributed data centers into integrated gigawatt-scale AI factories.
Founder and CEO Jensen Huang expressed optimism about the market outlook. He told investors: "We see an inflection point in agentic AI and the growth of global computing demand. In this new world of AI, computing is revenue." Huang emphasized that the demand for networking technology is at the core of confidence, with NVIDIA's products deployed across clouds, data centers, and the global edge. He also noted that software advantages are another driver of revenue, with the CUDA architecture demonstrating outstanding efficiency.
Following the earnings release, Emarketer analyst Jacob Bourne commented that despite strong demand for NVIDIA's products, the competitive landscape is changing. Bourne said: "Companies like Meta are turning to AMD, and large cloud service providers are investing in custom chips. This raises concerns about how NVIDIA will maintain its dominance." Bourne added that NVIDIA's diversification strategy, such as expanding into the PC market, helps build revenue streams beyond data centers.
