NVIDIA Reports Strong Revenue Growth Amid Challenges

Nvidia Corporation ( (NVDA) ) has released its Q1 earnings. Here is a breakdown of the information Nvidia Corporation presented to its investors.

NVIDIA Corporation is a leading company in the accelerated computing sector, known for its innovations in AI and graphics technology. In its latest earnings report for the first quarter of fiscal 2026, NVIDIA announced a significant revenue increase to $44.1 billion, marking a 12% rise from the previous quarter and a 69% jump from the same period last year. This growth was primarily driven by its data center segment, which generated $39.1 billion in revenue.

The company faced a $4.5 billion charge due to new U.S. export licensing requirements affecting its H20 products in China, impacting its gross margins and earnings per share. Despite this, NVIDIA’s non-GAAP gross margin, excluding the charge, would have been 71.3%. The company’s diluted earnings per share stood at $0.76, with a potential increase to $0.96 without the H20 charge.

NVIDIA’s strategic advancements include the production of its Blackwell NVL72 AI supercomputer and partnerships to build AI infrastructure globally. The company is also expanding its AI and gaming product lines, with new releases such as the NVIDIA GeForce RTX 5070 and RTX 5060, and collaborations with major tech firms to enhance AI capabilities.

Looking ahead, NVIDIA expects its second-quarter revenue to reach approximately $45 billion, despite anticipated losses in H20 revenue due to export restrictions. The company aims to achieve gross margins in the mid-70% range by the end of the fiscal year, reflecting its ongoing commitment to innovation and market leadership.