NVIDIA Corporation Surges with Record-Breaking First Quarter Fiscal 2026
Highlights
- Revenue: $44 billion (+69% YoY)
- Data center revenue: $39 billion (+73% YoY)
- Gaming revenue: $3.8 billion (+48% QoQ, +42% YoY)
- Networking revenue: $5 billion (+64% QoQ)
- Record shareholder returns: $14.3 billion
- $4.5 billion charge due to inventory write-down tied to export controls
- H20 revenue impact: Recognized $4.6 billion, potential loss of $8 billion in Q2 due to export controls
NVIDIA Corporation has reported a remarkable fiscal first quarter for 2026, characterized by exceptional growth across several key segments. Despite geopolitical headwinds, including export controls impacting its sales to China, NVIDIA managed to post impressive numbers that underscore its market leadership and relentless innovation.
Revenue Growth and Data Center Dominance
The tech giant reported total revenue of $44 billion, marking a significant 69% increase year-over-year, surpassing expectations despite challenges in the operating environment. Particularly noteworthy is the data center segment, which generated $39 billion, up an impressive 73% from last year. This growth is largely driven by the adoption of AI workloads, with substantial contributions from the Blackwell series, NVIDIA's latest advancement in data center GPUs.
Gaming and Networking Triumphs
NVIDIA's gaming division also displayed robust figures, reaching a record $3.8 billion, an increase of 48% sequentially and 42% year-over-year. The successful launch and fast adoption of the Blackwell architecture have stimulated significant demand among gamers and AI enthusiasts alike.
Networking revenue resumed strong growth with a 64% quarter-over-quarter increase to $5 billion. This resurgence is attributed to the deployment of enhanced Ethernet solutions and SpectrumX technology, which have significantly boosted operational efficiency in AI clusters, particularly within major cloud service providers.
Challenges and Charges
However, the quarter was not without its hurdles. Export controls implemented by the US on NVIDIA's H20 GPUs have forced the company to recognize a $4.5 billion charge as it wrote down inventory and purchase obligations. This has created a substantial impact, as NVIDIA was unable to ship $2.5 billion in H20 anticipated revenue for the quarter and foresees an $8 billion revenue loss for the H20 in the upcoming second quarter. These restrictions not only impact NVIDIA's bottom line but also highlight the tense geopolitical landscape that tech companies navigate.
Significant Shareholder Returns
Despite these challenges, NVIDIA returned a record $14.3 billion to shareholders through share repurchases and cash dividends, underscoring its commitment to delivering value and maintaining confidence in its strategic direction.
As AI technology continues to scale across industries and geographies, NVIDIA remains at the forefront, shaping the future of computing and ensuring its infrastructure is integral to global digital transformation.