NVIDIA reports $44.1 billion in Q1 revenue
NVIDIA Q1: $44.1B revenue, $0.81 EPS, $4.5B charge
NVIDIA Corporation (NASDAQ: NVDA) reported strong financial results for the first quarter of fiscal 2026, ended April 27, 2025, with revenue reaching $44.1 billion, marking a 12% increase from the previous quarter and a 69% year-over-year jump.
The performance was driven by surging global demand for AI computing infrastructure, particularly within the company’s data center segment, which contributed $39.1 billion to the quarterly revenue, NVIDIA reported.
Key figures and facts
- Q1 FY26 revenue: $44.1 billion (+12% QoQ, +69% YoY)
- Data Center revenue: $39.1 billion
- H20 revenue: $4.6 billion shipped, $2.5 billion unshipped
- GAAP EPS: $0.76, Non-GAAP EPS: $0.81 (would be $0.96 excluding charge)
- GAAP margin: 60.5%, Non-GAAP margin: 61.0% (would be 71.3% excluding charge)
- Dividend: $0.01 per share, payable July 3, 2025
On April 9, 2025, the company received notification from the U.S. government that a license would be required to export its H20 AI products to China. In response, NVIDIA recorded a $4.5 billion charge associated with excess inventory and purchase obligations due to reduced demand. Although H20 sales totaled $4.6 billion prior to the policy shift, an additional $2.5 billion in revenue could not be realized due to the restrictions.
Margins, earnings, and AI strategy
Despite the headwind, NVIDIA maintained strong profitability metrics. GAAP and non-GAAP gross margins stood at 60.5% and 61.0%, respectively. Adjusting for the H20-related charge, non-GAAP gross margin would have reached 71.3%.
Earnings per diluted share were $0.76 GAAP and $0.81 non-GAAP. Excluding the H20 charge and related tax impact, non-GAAP EPS would have been $0.96.
CEO Jensen Huang emphasized NVIDIA's leadership in the AI space, noting the full-scale production of the Blackwell NVL72 AI supercomputer, engineered for advanced reasoning capabilities. “Global demand for NVIDIA’s AI infrastructure is incredibly strong,” Huang said. “AI inference token generation has surged tenfold in just one year… countries are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation.”
Dividends and outlook
NVIDIA announced a $0.01 per share quarterly cash dividend, payable on July 3, 2025, to shareholders of record as of June 11, 2025. While trade restrictions remain a concern, the company’s core growth trajectory remains closely tied to the global AI boom, with demand expected to accelerate as AI agents become mainstream.
You reported earlier that Nvidia stock gains 3.2% ahead of earnings as traders eye $137.50 breakout.
