The financial data for the first quarter of fiscal year 2026, which ended on April 27, 2025, have been made public by NVIDIA Corporation (NASDAQ: NVDA). The business recorded $44.1 billion in revenue, up 69% year over year and 12% from the preceding quarter. The data center segment, which produced $39.1 billion in revenue, up 73% yearly and 10% sequentially, was the main driver of this expansion.
However, new U.S. export limitations on NVIDIA's H20 AI processors to China presented difficulties. A $4.5 billion charge for excess inventories and purchase obligations resulted from these limits. The company claimed a gross margin of 61%, but its non-GAAP gross margin, excluding this penalty, would have been 71.3%. Compared to the anticipated $0.93, adjusted earnings per share were $0.81.
After-hours trading of NVIDIA's stock increased by 1% in reaction to the results report, and it has increased by 25% in the last month. With plans for a quantum computing center in Boston and new offices in Taipei, the company is still growing internationally. Strategic agreements like the $40 billion chip contract from Oracle and the supply of 18,000 AI processors to Saudi Arabia demonstrate NVIDIA's attempts to expand its clientele outside conventional American tech companies.
In the future, NVIDIA has projected sales for the second quarter of $28.0 billion, plus or minus 2%, which is less than what analysts had anticipated. The business expects its non-GAAP and GAAP gross margins to be roughly 75.5% and 74.8%, respectively.
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Analysts are upbeat about NVIDIA's long-term prospects despite short-term challenges, pointing to robust demand in AI-driven data centers and developing industries like sovereign AI. The price expectations for NVDA shares, which show faith in the company's sustained development trajectory, fall between $120 and $160 per share.
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