NVIDIA Corporation Q1 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q1 FY26 revenue was $44 billion, up 69% year over year (vs. Q1 FY25). This exceeded company outlook despite significant export‑control headwinds.
  • Data Center revenue reached $39 billion, up 73% year over year, driven primarily by Blackwell GPU adoption and soaring AI inference demand.
  • Gaming revenue hit a record $3.8 billion, up 48% sequentially and 42% year over year.
  • Automotive revenue was $567 million, down 1% sequentially but up 72% year over year.
  • Professional visualization revenue was $509 million, flat sequentially and up 19% year over year.
  • Returned a record $14.3 billion to shareholders through repurchases and dividends.

Key Challenges: H20 Export Controls and China Market Loss

  • New U.S. export controls (April 9) abruptly halted H20 GPU shipments to China—no sell‑through grace period was provided.
  • NVIDIA recognized:
    • $4.6 billion in H20 revenue prior to the cutoff.
    • A $4.5 billion charge for inventory and purchase‑obligation write‑downs.
    • Missed $2.5 billion in H20 revenue that could not be shipped in Q1.
  • Q2 outlook includes an additional $8 billion revenue headwind from halted H20 shipments.
  • NVIDIA stated that U.S. rules effectively eliminate the ability to sell Hopper‑class GPUs to China; the company currently has no approved replacement SKU.

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Sarah: Good afternoon. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to NVIDIA Corporation's First Quarter Fiscal 2026 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, please press the star key followed by the number one on your telephone keypad. Thank you. Toshiya Hari, you may begin your conference. Toshiya Hari: Thank you. Good afternoon, everyone, and welcome to NVIDIA Corporation's conference call for the first quarter fiscal 2026. With me today from NVIDIA Corporation are Jensen Huang, president and chief executive officer, and Colette Kress, executive vice president and chief financial officer. I'd like to remind you that our call is being webcast live on NVIDIA Corporation's investor relations website. The webcast will be available for replay until the conference call to discuss our financial results for the second quarter of fiscal 2026. The content of today's call is NVIDIA Corporation's property. It cannot be reproduced or transcribed without our prior written consent. During this call, we may make forward-looking statements based on current expectations. These are subject to a number of significant risks and uncertainties, and our actual results may differ materially. For a discussion of factors that could affect our futu

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