NVIDIA Corporation (NASDAQ:NVDA) released its third quarter earnings report after closing bell tonight, posting adjusted earnings of 39 cents per share on revenue of $1.23 billion, a 16% year over year increase. Analysts had been expecting earnings of 27 cents per share on $1.2 billion in revenue for the quarter.

NVIDIA Corporation Beats Earnings Estimates

In the same quarter last year, the company reported earnings of 26 cents per share, beating the consensus estimate, on $1.05 billion in revenue, which was just barely a miss compared to consensus.

Net earnings were 31 cents per share or $173 million, compared to 20 cents per share last year.

Business updates

During the quarter, NVIDIA launched its new gaming GPUs, extended its Maxwell-based processors and continued working with Tesla Motors INc (NASDAQ:TSLA) to push into the big data analytics market. The company also passed 6 million cars on the road with NVIDIA-powered infotainment systems.

“NVIDIA’s focus on creating visual computing platforms for datacenter, mobile and PC drove record revenue this quarter,” said NVIDIA President and CEO Jen-Hsun Huang in a statement. “Growth drivers have kicked in for us on several fronts. High-performance computing, virtualization and web service providers have created demand for our GPU-accelerated datacenter platforms. Automakers are using Tegra to help reinvent the driving experience. And our new Maxwell architecture is a giant leap forward that has triggered a major upgrade cycle by PC gamers.”

The company paid $46 million in cash dividends and received 16.8 million shares as part of a $310 repurchase agreement. NVIDIA expects to return about $600 million to shareholders in the 2016 fiscal year through a combination of share repurchases and dividends.

NVIDIA provides guidance

For the fourth fiscal quarter, NVIDIA expects revenue to be about $1.2 billion, plus or minus 2%. The company projects non-GAAP gross margins of between 55.2% and 55.5%, plus or minus 50 basis points. NVIDIA expects GAAP operating expenses to be between $470 million and non-GAAP operating expenses to be about $422 million, including litigation costs.

The company expects to spend between $40 million and $50 million on capital expenditures.