NVIDIA reported first quarter fiscal 2026 revenue of $44.1 billion, up 12% from the previous quarter and up 69% from a year ago, despite incurring a $4.5 billion charge related to H20 product export restrictions to China. The company was informed by the U.S. government on April 9, 2025, that a licence is required for exports of H20 products into the China market, resulting in excess inventory and purchase obligation charges as H20 demand diminished.
Data Centre revenue reached $39.1 billion, up 10% from the previous quarter and up 73% from a year ago, representing the primary growth driver for the company. Sales of H20 products were $4.6 billion for the first quarter prior to the new export licensing requirements, with NVIDIA unable to ship an additional $2.5 billion of H20 revenue during the quarter.
GAAP and non-GAAP gross margins were 60.5% and 61.0%, respectively. Excluding the $4.5 billion charge, first quarter non-GAAP gross margin would have been 71.3%. GAAP and non-GAAP earnings per diluted share were $0.76 and $0.81, respectively, with adjusted earnings per share reaching $0.96 excluding the H20 charge and related tax impact.
Jensen Huang, founder and CEO of NVIDIA, stated that "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 emphasised that "global demand for NVIDIA's AI infrastructure is incredibly strong" with "AI inference token generation has surged tenfold in just one year."
Gaming and AI PC revenue hit a record $3.8 billion, up 48% from the previous quarter and up 42% from a year ago. The company announced the GeForce RTX 5070 and RTX 5060, bringing Blackwell graphics to gamers at prices starting from $299 for desktops and $1,099 for laptops.
For Q2 fiscal 2026, NVIDIA expects revenue of $45.0 billion, plus or minus 2%, reflecting a loss in H20 revenue of approximately $8.0 billion due to export control limitations. GAAP and non-GAAP gross margins are expected to be 71.8% and 72.0%, respectively.
The company announced multiple enterprise initiatives including U.S. AI factory construction, partnerships with HUMAIN for Saudi Arabian AI facilities, and Stargate UAE infrastructure development alongside G42, OpenAI, Oracle, SoftBank Group, and Cisco. NVIDIA Blackwell cloud instances are now available on AWS, Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure.
Despite regulatory challenges in China representing significant revenue impact, NVIDIA's diversified AI infrastructure demand demonstrates resilience across global markets. The company's positioning in AI reasoning capabilities and enterprise partnerships supports continued growth trajectory, though China export restrictions present ongoing operational and financial considerations for future quarters.