Wed, May 28, 8:34 PM (25 days ago)
**NVIDIA Corporation (NVDA) Q1 2026 Financial Summary** NVIDIA Corporation reported strong quarterly financial health for Q1 2026, ending April 27, 2025. The company's revenue surged to $44.1 billion, marking a 69% year-over-year increase and a 12% sequential growth. This growth was primarily driven by the Data Center segment, which saw a 73% year-over-year increase, fueled by demand for accelerated computing platforms used in large language models, recommendation engines, and generative AI applications. **Key Financial Metrics:** - **Revenue:** $44.1 billion, up 69% year-over-year and 12% sequentially. - **Gross Margin:** 60.5%, down from 78.4% year-over-year due to a $4.5 billion charge related to H20 excess inventory and purchase obligations. - **Operating Income:** $21.6 billion, up 28% year-over-year. - **Net Income:** $18.8 billion, up 26% year-over-year. - **Earnings per Share (EPS):** $0.76 diluted, up 27% year-over-year. **Segment Performance:** - **Compute & Networking:** Revenue of $39.6 billion, up 75% year-over-year, driven by data center compute and networking platforms. - **Graphics:** Revenue of $4.5 billion, up 33% year-over-year, driven by sales of the Blackwell architecture. **Operating Expenses:** - **Research and Development:** $3.99 billion, up 47% year-over-year. - **Sales, General, and Administrative:** $1.04 billion, up 34% year-over-year. - **Total Operating Expenses:** $5.03 billion, up 44% year-over-year. **Cash Flow:** - **Operating Cash Flow:** $27.4 billion, up from $15.3 billion year-over-year. - **Investing Cash Flow:** -$5.22 billion, improved from -$5.69 billion year-over-year. - **Financing Cash Flow:** -$15.6 billion, up from -$9.35 billion year-over-year. **Future Outlook and Uncertainties:** NVIDIA faces several challenges, including export controls impacting the China market, which led to a $4.5 billion charge in Q1 2026. The company is evaluating options to supply Data Center compute products compliant with U.S. export control rules. Additionally, the increasing complexity of export controls and geopolitical tensions pose risks to supply chain operations and future revenue. **Trends and Future Operations:** NVIDIA continues to invest in U.S.-based manufacturing to strengthen supply chain resilience. The company plans to increase manufacturing capabilities, which will depend on the domestic manufacturing ecosystem's capacity to ramp production supply timely. The recent rise of open-source foundation models and the increasing importance of AI technologies present both opportunities and challenges for NVIDIA's future operations.