Nvidia Reports 69% Revenue Surge, 26% Net Profit Gain Despite Export Restrictions

Nvidia has reported its first-quarter fiscal 2026 earnings, showcasing a robust performance with significant increases in both revenue and net profit. The company's revenue for the quarter reached 440.62 billion dollars, reflecting a 69% year-over-year increase and a 12% sequential growth. Net profit for the quarter stood at 187.75 billion dollars, marking a 26% increase compared to the same period last year, although it decreased by 15% from the previous quarter.

The data center business was a standout performer, generating 391 billion dollars in revenue, a 73% year-over-year increase and a 10% sequential growth. The gaming and AI PC segment also saw strong performance, with revenue reaching 38 billion dollars, a 42% year-over-year increase and a 48% sequential growth. The professional visualization and automotive segments contributed 5.09 billion dollars and 5.67 billion dollars respectively, showing modest growth.

Nvidia's gross profit for the quarter was 266.68 billion dollars, up from 204.06 billion dollars in the same period last year, but down from 287.23 billion dollars in the previous quarter. The gross margin for the quarter was 60.5%, down from 78.4% in the same period last year and 73.0% in the previous quarter. Operating expenses for the quarter were 50.30 billion dollars, up from 34.97 billion dollars in the same period last year and 46.89 billion dollars in the previous quarter.

The company's operating income for the quarter was 216.38 billion dollars, up from 169.09 billion dollars in the same period last year, but down from 240.34 billion dollars in the previous quarter. Nvidia's earnings per share for the quarter were 0.76 dollars, up from 0.60 dollars in the same period last year, but down from 0.89 dollars in the previous quarter.

Nvidia's performance was impacted by new export restrictions on its H20 chip products. The company recorded a 45 billion dollars charge related to excess inventory and purchase obligations for the H20 chip. This charge resulted in a loss of 25 billion dollars in revenue for the quarter. Despite this setback, Nvidia's data center and gaming segments continued to drive growth, highlighting the company's strong position in the market.

Looking ahead, Nvidia has provided guidance for the second quarter of fiscal 2026, expecting revenue to reach 450 billion dollars, with a margin of error of 2%. This guidance reflects an approximate 80 billion dollars loss in H20 chip revenue. The company also anticipates a gross margin of around 71.8% to 72.0% and operating expenses of approximately 57 billion dollars. For the full fiscal year 2026, Nvidia aims to maintain a gross margin in the mid-range of 70% to 79% and expects operating expenses to grow at a rate in the mid-range of 30% to 39%.