Nvidia reported fiscal Q4 2026 results after Wednesday’s close and beat Wall Street estimates. Shares rose more than 3% after the release.
Adjusted EPS was $1.62, which was $0.08 above consensus. Revenue was $68.13 billion, which was $1.9 billion above expectations. Revenue rose 20% quarter over quarter and 73% year over year.
Key Segment Performance
Data Centre revenue was $62.3 billion, up 22% from Q3 and 75% from a year earlier. Non-GAAP gross margin was 75.2%, in line with the company’s stated target.
For fiscal Q1 2027, Nvidia forecast revenue of $78 billion, above the $72 billion consensus estimate. The company also pointed to rising demand for AI computing and growing enterprise use of AI agents.
Salesforce reported a top-line beat, with revenue roughly in line with analyst expectations. Shares fell 4% at first in after-hours trading.
Snowflake shares dropped 3% after a narrow beat versus consensus. The Trade Desk fell over 14% after its Q1 revenue outlook came in $10 million below consensus.
Options Strategy Considerations
Nvidia’s big earnings beat shows the AI trend is still speeding up. But the stock only rose about 3%, which suggests much of the good news was already priced in. This “sell the news” move means traders may want more than a simple “buy calls” approach.
Implied volatility was very high going into the report, and it will likely fall sharply now. This drop is known as a “volatility crush.” It can make option-selling strategies more attractive, such as short-term, out-of-the-money put credit spreads. These aim to collect premium while betting that NVDA will not fall much in the next few weeks.
Tech is also splitting into winners and losers. Salesforce and Snowflake fell even after beats, showing the market is punishing anything that is not close to perfect. Money is concentrating in the clear leader. That sets up a possible pairs trade: take bullish exposure to Nvidia options while buying puts on a broader tech ETF like QQQ to hedge against broader sector weakness.
The huge NVDA rally during 2025 also pushed expectations very high. Ahead of the report, call option volume often topped 2 million contracts per day, showing how crowded the bullish trade became. When many buyers are already positioned for upside, even a strong beat can lead to only a modest initial move.
Even after this strong report, NVDA’s forward price-to-earnings ratio is still above 35. That valuation depends on near-flawless execution. The stock is also sensitive to interest rates, especially in the environment we have seen since late 2025. Any unexpected macro news could still pressure even the strongest names. Because of that, bullish positions should have clearly defined risk.
With strong guidance for next quarter, bullish positions can still make sense, but they should be built to manage cost. A call debit spread—buying a call and selling another call at a higher strike—can target further upside while reducing the upfront premium. It also fits a view that the data center business remains the main driver.
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