NVIDIA has released its financial results for the first quarter of fiscal 2026, revealing a revenue of $44.1 billion, marking a 12% increase from the previous quarter and a 69% rise compared to the same period last year. The company faced a significant impact due to new U.S. government export licensing requirements for its H20 products destined for China, resulting in a $4.5 billion charge related to excess inventory and purchase obligations.
The company's gross margins were reported at 60.5% on a GAAP basis and 61.0% on a non-GAAP basis for the quarter. Excluding the H20-related charges, NVIDIA's non-GAAP gross margin would have been 71.3%. The diluted earnings per share were $0.76 GAAP and $0.81 non-GAAP; without considering the H20 charge, this figure would have reached $0.96.
Jensen Huang, founder and CEO of NVIDIA, commented on the strong demand for AI infrastructure: “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.” He noted that "countries around the world are recognizing AI as essential infrastructure."
For its next quarter outlook, NVIDIA expects revenue to be approximately $45 billion, acknowledging an anticipated loss of around $8 billion in H20 product revenue due to export restrictions.
The data center segment achieved first-quarter revenue of $39.1 billion, while gaming brought in $3.8 billion—a record high—demonstrating significant growth from both sectors over previous periods.
NVIDIA continues expanding its operations with several initiatives worldwide, including partnerships to build AI factories in Saudi Arabia and collaboration with Foxconn and Taiwan’s government on an AI factory supercomputer.
A conference call was scheduled by NVIDIA management to discuss these results further with analysts and investors.