There was some good news for the PC industry yesterday; despite a global slowdown in the number of computers sold, hardware sales are improving - for Nvidia, at least. The GPU maker reported that it had beaten fourth quarter earnings targets and posted record revenue for both Q4 and 2016.

Nvidia’s revenue from its core graphics card business for the three months up to January 31 was $810 million, a jump of 25.4 percent from the same period a year earlier. The company puts this down to consumers buying new GPUs to power some of the blockbuster games released during this holiday quarter, including Star Wars: Battlefront and Call of Duty: Black Ops III.

"GeForce sales are driven by the launch of great gaming titles and that again proved true this past holiday season," Chief Financial Officer Colette Kress said on a conference call with investors and press.

While revenue for the entire year was up 7 percent to $5.01 billion, the company’s net income was down 3 percent from $631 billion to $614 billion. Operating expenses rose 12 percent to just over $2 billion.

Nvidia is continuing to expand its business into other areas outside of gaming; the company is “especially excited” about its deep learning strategy.

"Deep learning is a new computing model that teaches computers to find patterns and make predictions, extracting powerful insights from massive quantities of data. We are working with thousands of companies that are applying the power of deep learning in fields ranging from life sciences and financial services to the Internet of Things," said CEO Jen-Hsun Huang.

Nvidia’s share price rose almost 10 percent in after-hours trading following the report, and is currently up 25 percent over the last 12 months. With continued growth in the PC gaming, VR, deep learning and self-driving vehicle markets, the future is looking bright for Nvidia.

Here's the full breakdown from the report.

GAAP
($ in millions except earnings per share) Q4 FY16 Q3 FY16 Q4 FY15 Q/Q Y/Y
Revenue $1,401 $1,305 $1,251 up 7% up 12%
Gross margin 56.5% 56.3% 55.9% up 20 bps up 60 bps
Operating expenses $539 $489 $468 up 10% up 15%
Operating income $252 $245 $231 up 3% up 9%
Net income $207 $246 $193 down 16% up 7%
Diluted earnings per share $0.35 $0.44 $0.35 down 20% --
Non-GAAP
($ in millions except earnings per share) Q4 FY16 Q3 FY16 Q4 FY15 Q/Q Y/Y
Revenue $1,401 $1,305 $1,251 up 7% up 12%
Gross margin 57.2% 56.5% 56.2% up 70 bps up 100 bps
Operating expenses $445 $430 $420 up 3% up 6%
Operating income $356 $308 $283 up 16% up 26%
Net income $297 $255 $241 up 16% up 23%
Diluted earnings per share $0.52 $0.46 $0.43 up 13% up 21%

FY2016 Summary

GAAP
($ in millions except earnings per share) FY16 FY15 Y/Y
Revenue $5,010 $4,682 up 7%
Gross margin 56.1% 55.5% up 60 bps
Operating expenses $2,064 $1,840 up 12%
Operating income $747 $759 down 2%
Net income $614 $631 down 3%
Diluted earnings per share $1.08 $1.12 down 4%
Non-GAAP
($ in millions except earnings per share) FY16 FY15 Y/Y
Revenue $5,010 $4,682 up 7%
Gross margin 56.8% 55.8% up 100 bps
Operating expenses $1,721 $1,657 up 4%
Operating income $1,125 $954 up 18%
Net income $929 $801 up 16%
Diluted earnings per share $1.67 $1.42 up 18%