Summary
NVIDIA Corporation reported robust financial results for the first quarter of fiscal year 2026, driven by exceptional demand for its accelerated computing platforms and AI solutions. Revenue surged by 69% year-over-year to $44.1 billion, with the Data Center segment experiencing a remarkable 73% growth. This growth was propelled by the continued ramp of its Blackwell architecture across all customer categories and strong adoption by cloud service providers and consumer internet companies. Despite the strong top-line performance, the company incurred a significant $4.5 billion charge related to H20 excess inventory and purchase obligations due to new U.S. government export licensing requirements for China, which also impacts future revenue outlook. Profitability saw a noticeable impact from this charge, with gross margin decreasing to 60.5% compared to 78.4% in the prior year's first quarter. Operating income, however, still saw a healthy 28% year-over-year increase to $21.6 billion, and net income grew 26% to $18.8 billion. The company's balance sheet remains strong, with $53.7 billion in cash, cash equivalents, and marketable securities, allowing for continued investment in innovation and significant capital returns to shareholders through share repurchases and dividends. Management is actively navigating evolving export control regulations and supply chain complexities while focusing on new product introductions and supporting the growing AI ecosystem.
Financial Highlights
52 data points| Revenue | $44.06B |
| Cost of Revenue | $17.39B |
| Gross Profit | $26.67B |
| R&D Expenses | $3.99B |
| SG&A Expenses | $1.04B |
| Operating Expenses | $5.03B |
| Operating Income | $21.64B |
| Net Income | $18.77B |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.76 |
| Shares Outstanding (Basic) | 24.44B |
| Shares Outstanding (Diluted) | 24.61B |
Key Highlights
- 1Revenue for the first quarter of fiscal year 2026 reached $44.1 billion, a substantial 69% increase year-over-year, demonstrating continued strong demand.
- 2The Data Center segment was the primary growth driver, with revenue up 73% year-over-year to $39.1 billion, fueled by AI and accelerated computing platforms.
- 3A $4.5 billion charge was recorded due to new U.S. export licensing requirements for H20 products to China, impacting gross margin and future revenue outlook.
- 4Gross margin declined to 60.5% from 78.4% in the prior year, largely due to the H20 inventory charge and the ramp-up of sophisticated new systems.
- 5Net income increased by 26% year-over-year to $18.8 billion, reflecting strong operational performance despite the charge.
- 6NVIDIA returned $14.5 billion to shareholders through share repurchases in the quarter, underscoring its commitment to capital return.
- 7The company faces evolving export control regulations and supply chain challenges, particularly concerning the China market, which are being actively managed.