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NVIDIA Announces Financial Results for First Quarter Fiscal 2026

May 28, 2025 4:20 PM

SANTA CLARA, Calif., May 28, 2025 (GLOBE NEWSWIRE) -- NVIDIA (NASDAQ: NVDA) today reported revenue for the first quarter ended April 27, 2025, of $44.1 billion, up 12% from the previous quarter and up 69% from a year ago.

On April 9, 2025, NVIDIA was informed by the U.S. government that a license is required for exports of its H20 products into the China market. As a result of these new requirements, NVIDIA incurred a $4.5 billion charge in the first quarter of fiscal 2026 associated with H20 excess inventory and purchase obligations as the demand for H20 diminished. Sales of H20 products were $4.6 billion for the first quarter of fiscal 2026 prior to the new export licensing requirements. NVIDIA was unable to ship an additional $2.5 billion of H20 revenue in the first quarter.

For 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%.

For the quarter, GAAP and non-GAAP earnings per diluted share were $0.76 and $0.81, respectively. Excluding the $4.5 billion charge and related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96.

“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,” said Jensen Huang, founder and CEO of NVIDIA. “Global demand for NVIDIA’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation.”

NVIDIA will pay its next quarterly cash dividend of $0.01 per share on July 3, 2025, to all shareholders of record on June 11, 2025.

Q1 Fiscal 2026 Summary

GAAP
($ in millions, except earnings
per share)		 Q1 FY26 Q4 FY25 Q1 FY25 Q/Q Y/Y
Revenue$44,062 $39,331 $26,044 12% 69%
Gross margin 60.5% 73.0% 78.4% (12.5) pts (17.9) pts
Operating expenses$5,030 $4,689 $3,497 7% 44%
Operating income$21,638 $24,034 $16,909 (10)% 28%
Net income$18,775 $22,091 $14,881 (15)% 26%
Diluted earnings per share*$0.76 $0.89 $0.60 (15)% 27%


Non-GAAP
($ in millions, except earnings
per share)		 Q1 FY26 Q4 FY25 Q1 FY25 Q/Q Y/Y
Revenue$44,062 $39,331 $26,044 12% 69%
Gross margin 61.0% 73.5% 78.9% (12.5) pts (17.9) pts
Gross margin excluding H20 charge 71.3%
Operating expenses$3,583 $3,378 $2,501 6% 43%
Operating income$23,275 $25,516 $18,059 (9)% 29%
Net income$19,894 $22,066 $15,238 (10)% 31%
Diluted earnings per share*

$0.81 $0.89 $0.61 (9)% 33%
Diluted earnings per share excluding H20 charge and related tax impact$0.96
*All per share amounts presented herein have been retroactively adjusted to reflect NVIDIA’s ten-for-one stock split, which was effective June 7, 2024.

Outlook
NVIDIA’s outlook for the second quarter of fiscal 2026 is as follows:

Highlights
NVIDIA achieved progress since its previous earnings announcement in these areas:

Data Center

Gaming and AI PC

Professional Visualization

Automotive and Robotics

CFO Commentary
Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at https://investor.nvidia.com.

Conference Call and Webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2026 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website, https://investor.nvidia.com. The webcast will be recorded and available for replay until NVIDIA’s conference call to discuss its financial results for its second quarter of fiscal 2026.

Non-GAAP Measures
To supplement NVIDIA’s condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, and free cash flow. For NVIDIA’s investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense, acquisition-related and other costs, other, gains/losses from non-marketable and publicly-held equity securities, net, interest expense related to amortization of debt discount, H20 excess inventory and purchase obligation charges, and the associated tax impact of these items where applicable. The inclusion of H20 excess inventory and purchase obligation charges in the reconciliations to adjust the related GAAP financial measures was a result of the U.S. government informing NVIDIA on April 9, 2025 that it requires a license for export to China of H20 products. H20 products were designed primarily for the China market. Free cash flow is calculated as GAAP net cash provided by operating activities less both purchases related to property and equipment and intangible assets and principal payments on property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the company’s historical financial performance. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies.

NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
Three Months Ended
April 27, April 28,
2025 2024
Revenue$44,062 $26,044
Cost of revenue 17,394 5,638
Gross profit 26,668 20,406
Operating expenses
Research and development 3,989 2,720
Sales, general and administrative 1,041 777
Total operating expenses 5,030 3,497
Operating income 21,638 16,909
Interest income 515 359
Interest expense (63) (64)
Other income (expense), net (180) 75
Total other income (expense), net 272 370
Income before income tax 21,910 17,279
Income tax expense 3,135 2,398
Net income$ 18,775 $ 14,881
Net income per share:
Basic$0.77 $0.60
Diluted$0.76 $0.60
Weighted average shares used in per share computation:
Basic 24,441 24,620
Diluted 24,611 24,890


NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
April 27, January 26,
2025 2025
ASSETS
Current assets:
Cash, cash equivalents and marketable securities $53,691 $43,210
Accounts receivable, net 22,132 23,065
Inventories 11,333 10,080
Prepaid expenses and other current assets 2,779 3,771
Total current assets 89,935 80,126
Property and equipment, net 7,136 6,283
Operating lease assets 1,810 1,793
Goodwill 5,498 5,188
Intangible assets, net 769 807
Deferred income tax assets 13,318 10,979
Other assets 6,788 6,425
Total assets $ 125,254 $ 111,601
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $7,331 $6,310
Accrued and other current liabilities 19,211 11,737
Total current liabilities 26,542 18,047
Long-term debt 8,464 8,463
Long-term operating lease liabilities 1,521 1,519
Other long-term liabilities 4,884 4,245
Total liabilities 41,411 32,274
Shareholders' equity 83,843 79,327
Total liabilities and shareholders' equity $ 125,254 $ 111,601


NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended
April 27, April 28,
2025 2024
Cash flows from operating activities:
Net income$18,775 $14,881
Adjustments to reconcile net income to net cash
provided by operating activities:
Stock-based compensation expense 1,474 1,011
Depreciation and amortization 611 410
(Gains) losses on non-marketable equity securities and publicly-held equity securities, net 175 (69)
Deferred income taxes (2,177) (1,577)
Other (98) (145)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable 933 (2,366)
Inventories (1,258) (577)
Prepaid expenses and other assets 560 (726)
Accounts payable 941 (22)
Accrued and other current liabilities 7,128 4,202
Other long-term liabilities 350 323
Net cash provided by operating activities 27,414 15,345
Cash flows from investing activities:
Proceeds from maturities of marketable securities 3,122 4,004
Proceeds from sales of marketable securities 467 149
Proceeds from sales of non-marketable equity securities - 55
Purchases of marketable securities (6,546) (9,303)
Purchase related to property and equipment and intangible assets (1,227) (369)
Purchases of non-marketable equity securities (649) (190)
Acquisitions, net of cash acquired (383) (39)
Net cash used in investing activities (5,216) (5,693)
Cash flows from financing activities:
Proceeds related to employee stock plans 370 285
Payments related to repurchases of common stock (14,095) (7,740)
Payments related to employee stock plan taxes (1,532) (1,752)
Dividends paid (244) (98)
Principal payments on property and equipment and intangible assets (52) (40)
Net cash used in financing activities (15,553) (9,345)
Change in cash and cash equivalents 6,645 307
Cash and cash equivalents at beginning of period 8,589 7,280
Cash and cash equivalents at end of period$ 15,234 $ 7,587


NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)
Three Months Ended
April 27, January 26, April 28,
2025 2025 2024
GAAP cost of revenue$17,394 $10,608 $5,638
GAAP gross profit $26,668 $28,723 $20,406
GAAP gross margin 60.5% 73.0% 78.4%
Acquisition-related and other costs (A) 123 118 119
Stock-based compensation expense (B) 64 53 36
Other 3 - (1)
Non-GAAP cost of revenue$ 17,204 $ 10,437 $ 5,484
Non-GAAP gross profit$ 26,858 $ 28,894 $ 20,560
Non-GAAP gross margin 61.0% 73.5% 78.9%
GAAP operating expenses$5,030 $4,689 $3,497
Stock-based compensation expense (B) (1,410) (1,268) (975)
Acquisition-related and other costs (A) (37) (43) (21)
Non-GAAP operating expenses$ 3,583 $ 3,378 $ 2,501
GAAP operating income$21,638 $24,034 $16,909
Total impact of non-GAAP adjustments to operating income 1,637 1,482 1,150
Non-GAAP operating income$ 23,275 $ 25,516 $ 18,059
GAAP total other income (expense), net$272 $1,183 $370
(Gains) losses from non-marketable equity securities and publicly-held equity securities, net 175 (727) (69)
Interest expense related to amortization of debt discount 1 1 1
Non-GAAP total other income (expense), net$ 448 $ 457 $ 302
GAAP net income $18,775 $22,091 $14,881
Total pre-tax impact of non-GAAP adjustments 1,813 756 1,082
Income tax impact of non-GAAP adjustments (C) (694) (781) (725)
Non-GAAP net income $ 19,894 $ 22,066 $ 15,238
Diluted net income per share (D)
GAAP $0.76 $0.89 $0.60
Non-GAAP $0.81 $0.89 $0.61
Weighted average shares used in diluted net income per share computation (D) 24,611 24,706 24,890
GAAP net cash provided by operating activities$27,414 $16,628 $15,345
Purchases related to property and equipment and intangible assets (1,227) (1,077) (369)
Principal payments on property and equipment and intangible assets (52) (32) (40)
Free cash flow $ 26,135 $ 15,519 $ 14,936
(A) Acquisition-related and other costs are comprised of amortization of intangible assets, transaction costs, and certain compensation charges and are included in the following line items:
Three Months Ended
April 27, January 26, April 28,
2025 2025 2024
Cost of revenue $123 $118 $119
Research and development$28 $27 $12
Sales, general and administrative$9 $16 $8
(B) Stock-based compensation consists of the following:
Three Months Ended
April 27, January 26, April 28,
2025 2025 2024
Cost of revenue $64 $53 $36
Research and development$1,063 $955 $727
Sales, general and administrative$347 $313 $248
(C) Income tax impact of non-GAAP adjustments, including the recognition of excess tax benefits or deficiencies related to stock-based compensation under GAAP accounting standard (ASU 2016-09).
(D) Reflects a ten-for-one stock split on June 7, 2024.
Three Months
Ended
April 27,
2025
($ in millions)
GAAP gross profit $26,668
GAAP gross margin 60.5%
Stock-based compensation expense, acquisition-related costs, and other costs 190
H20 excess inventory and purchase obligation charges 4,538
Non-GAAP gross profit (as adjusted to exclude H20 excess inventory and purchase obligation charges) $ 31,396
Non-GAAP gross margin (as adjusted to exclude H20 excess inventory and purchase obligation charges) 71.3%
GAAP net income $18,775
Total pre-tax impact of non-GAAP adjustments and H20 excess inventory and purchase obligation charges 6,351
Income tax impact of non-GAAP adjustments and H20 excess inventory and purchase obligation charges (1,491)
Non-GAAP net income (as adjusted to exclude H20 excess inventory and purchase obligation charges) $ 23,635
Diluted net income per share
GAAP $0.76
Non-GAAP (as adjusted to exclude H20 excess inventory and purchase obligation charges) $0.96
Weighted average shares used in diluted net income per share computation 24,611


NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
Q2 FY2026
Outlook
($ in millions)
GAAP gross margin 71.8%
Impact of stock-based compensation expense, acquisition-related costs, and other costs 0.2%
Non-GAAP gross margin 72.0%
GAAP operating expenses$5,700
Stock-based compensation expense, acquisition-related costs, and other costs (1,700)
Non-GAAP operating expenses$ 4,000

About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in accelerated computing.

For further information, contact:

Toshiya Hari Mylene Mangalindan
Investor Relations Investor Relations Corporate Communications
NVIDIA CorporationNVIDIA Corporation
[email protected] [email protected]


Certain statements in this press release including, but not limited to, statements as to: the impact of H20 export licensing requirements; global demand for NVIDIA’s AI infrastructure; the demand for AI computing accelerating; countries recognizing AI as essential infrastructure and NVIDIA’s role; AI factories fueling a new industrial revolution and their impact; expectations with respect to growth, performance and benefits of NVIDIA’s products, services and technologies, including Blackwell, and related trends and drivers; expectations with respect to supply and demand for NVIDIA’s products, services and technologies, including Blackwell, and related matters including inventory, production and distribution; expectations with respect to NVIDIA’s third party arrangements, including with its collaborators and partners; expectations with respect to technology developments and related trends and drivers; future NVIDIA cash dividends or other returns to stockholders; NVIDIA’s financial and business outlook for the second quarter of fiscal 2026 and beyond; projected market growth and trends; expectations with respect to AI and related industries; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing product and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

© 2025 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, DGX Cloud Lepton, DGX Station, GeForce RTX, NVIDIA Cosmos, NVIDIA DGX SuperPOD, NVIDIA Isaac, NVIDIA Omniverse, NVIDIA RTX PRO, NVIDIA Spectrum-X, and NVLink Fusion are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability and specifications are subject to change without notice.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/aabe86db-ce89-4434-b83c-495082979801


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NVIDIA corporate headquarters

NVIDIA corporate headquarters in Silicon Valley
Source: NVIDIA

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