NVIDIA announced $44.1 billion in revenue for the first quarter that concluded on April 27, 2025, up 69 per cent from the same period last year and up 12 per cent from the prior quarter.
NVIDIA was notified by the U.S. government on April 9 that exporting its H20 devices to the Chinese market requires a licence.
As a result of the new regulation, NVIDIA incurred a $4.5 billion charge in the first quarter of fiscal 2026 related to excess inventory and purchase obligations for H20, as demand for the product declined.
In the first quarter of fiscal 2026, sales of H20 items were $4.6 billion before the new export license regulations were implemented.
The first quarter saw NVIDIA miss out on an additional $2.5 billion in H20 revenue.
NVIDIA reports $39.1 billion in data centre revenue
NVIDIA reports $39.1 billion in data centre revenue, up 73 percent from the previous year and 10 percent from the fourth quarter.
Revenue from gaming reached a record $3.8 billion in the first quarter, rising 48 percent from the previous quarter and 42 percent from the same period last year.
Automotive revenue for the first quarter was $567 million, up 72 percent from the same period last year and down one percent from the prior quarter.
GAAP gross margins for the quarter were 60.5 percent, while non-GAAP gross margins were 61 percent. If the $4.5 billion charge had not been made, the non-GAAP gross margin for the first quarter would have been 71.3 percent.
Earnings per diluted share for the quarter were $0.76 under GAAP and $0.81 under non-GAAP.
With the $4.5 billion charge and associated tax impact removed, non-GAAP diluted profits per share for the first quarter would have been $0.96.
“Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine’ designed for reasoning— is now in full-scale production across system makers and cloud service providers,” said Jensen Huang, founder and CEO of NVIDIA. “Global demand for NVIDIA’s AI infrastructure is robust. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognising AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the centre of this profound transformation.”
NVIDIA’s future outlook
For the second quarter of fiscal 2026, NVIDIA has the following outlook:
A revenue of $45.0 billion, plus or minus 2%, is anticipated. The recent export control restrictions are expected to result in a loss of about $8.0 billion in H20 revenue.
The predicted GAAP and non-GAAP gross margins are 72 percent and 71.8 percent, respectively, with a 50-basis-point margin of error.
GAAP and non-GAAP operating expenses are anticipated to be roughly $5.7 billion and $4 billion, respectively.
Operating expense growth for the entire fiscal year 2026 is anticipated to be between 20 and 30 percent.
With gains and losses from non-marketable and publicly held equity securities excluded, GAAP and non-GAAP other income and expenses are projected to total around $450 million. With the exception of any discrete items, the estimated GAAP and non-GAAP tax rates are 16.5 percent, plus or minus.
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