Nvidia fiscal 2026 Q1 revenue at $44.1 billion

Nvidia Q1 revenue at $44.1 billion, market expected $43.29 billion. Data center revenue at $39.1 billion, estimate was $39.22 billion.

NVIDIA (NASDAQ: NVDA) reported robust financial results for the first quarter of fiscal year 2026, with revenue reaching $44.1 billion, up 12% quarter-over-quarter (QoQ) and 69% year-over-year (YoY). The company's data center revenue stood at $39.1 billion, a 10% QoQ increase and a 73% YoY growth [1].

However, NVIDIA faced a significant setback due to new export licensing requirements for H20 products to China, resulting in a $4.5 billion charge for excess inventory. This charge significantly impacted gross margins, which fell to 61.0% (non-GAAP), a 17.9% drop year-over-year. Excluding the China-related charge, non-GAAP gross margin would have been 71.3%, still below the 78.9% reported a year ago. Despite these challenges, NVIDIA achieved $19.9 billion in non-GAAP net income, up 31% YoY [1].

For Q2 FY2026, NVIDIA expects revenue of $45.0 billion (±2%), reflecting an $8.0 billion loss in H20 revenue due to export controls. The company projects gross margins to recover to 72.0% (non-GAAP), with management targeting mid-70s by year-end. NVIDIA's strategic response to geopolitical challenges includes building factories in the U.S. and forming global partnerships to diversify its manufacturing footprint [1].

NVIDIA's gaming revenue hit a record $3.8 billion, up 42% YoY, demonstrating the company's continued strength in its original market. The introduction of the next-generation Blackwell NVL72 AI supercomputer and expansion into new markets, such as Saudi Arabia, UAE, and Taiwan, highlight NVIDIA's strategic pivot in response to geopolitical challenges [1].

The 33% YoY growth in non-GAAP EPS to $0.81 ($0.96 excluding the H20 charge) indicates NVIDIA's underlying operational strength despite the China challenge. The company's strategic investments in U.S. manufacturing capacity, global AI infrastructure partnerships, and next-generation products position it well to navigate geopolitical complications while capitalizing on robust AI demand [1].

NVIDIA's Q1 results reveal a company executing well on AI infrastructure demand while simultaneously navigating significant geopolitical complications. The Blackwell architecture launch represents a critical technological transition, with CEO Jensen Huang describing the NVL72 AI supercomputer as a "thinking machine designed for reasoning" - signaling NVIDIA's push beyond traditional AI training into inference and reasoning capabilities. The 10x surge in AI inference token generation over just one year validates this strategic direction [1].

The China export restriction challenge is revealing NVIDIA's adaptability. Rather than simply absorbing the blow, the company is restructuring its global manufacturing strategy, announcing plans to build factories in the U.S. and establishing AI infrastructure partnerships across Saudi Arabia, UAE, and Taiwan. This geographic diversification protects against future geopolitical disruptions while ensuring access to key markets [1].

Beyond core AI computing, NVIDIA is executing a comprehensive ecosystem strategy. The gaming division's record $3.8 billion quarter (42% YoY growth) shows the company isn't neglecting its original market. The Nintendo Switch 2 partnership brings NVIDIA technology to a massive consumer platform, while the RTX Remix modding platform's 2 million user milestone demonstrates community engagement. The Automotive segment's 72% YoY growth to $567 million signals NVIDIA's expanding role in another AI-intensive sector. Partnerships with GM on next-generation vehicles and factories showcase how NVIDIA's technology is becoming embedded across multiple industries [1].

The technical depth of NVIDIA's announcements - from Spectrum-X networking to NVLink Fusion and silicon photonics - indicates the company is building an integrated technology stack that creates significant competitive moats. NVIDIA isn't just selling chips; it's creating comprehensive AI infrastructure platforms that are increasingly difficult for competitors to replicate [1].

Analysts expect NVIDIA to report Q1 revenue of $43.28 billion, with adjusted earnings per share of $0.73. Despite the high hopes, investors will be looking to see what impact the China export restrictions will have on NVIDIA's performance [2].

NVIDIA's stock (NASDAQ: NVDA) has seen significant price movement in advance of earnings, gaining more than 3% as of 3:00 p.m. ET, with shares topping $135. Year to date, shares of NVDA are down 2%. Despite the challenges, analysts remain positive, with 87% of those who cover NVDA stock holding a buy rating on the company [2].

References:

[1] https://www.stocktitan.net/news/NVDA/nvidia-announces-financial-results-for-first-quarter-fiscal-dhce42nx73x8.html
[2] https://www.fastcompany.com/91341195/nvidia-reports-q1-earnings-this-week-heres-what-to-expect