Nvidia Corporation (NASDAQ: NVDA) reported robust financial results for the first quarter of fiscal year 2026, ending April 27, 2025, despite facing challenges from recent U.S. export restrictions to China.
Financial Highlights:
Revenue: $44.1 billion, marking a 69% increase year-over-year and surpassing analyst expectations of $43.3 billion.
Adjusted Earnings Per Share (EPS): $0.81, up 33% from the previous year and exceeding the anticipated $0.73.
Data Center Revenue: $39.1 billion, a 73% rise from the previous year, driven by strong demand for AI infrastructure.
Challenges and Outlook:
Despite the strong performance, Nvidia faced a $4.5 billion charge due to unsold H20 chip inventory and an additional $2.5 billion in unshipped H20 products resulting from new U.S. export licensing requirements. The company anticipates a potential $8 billion revenue loss in the second quarter due to these restrictions.
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Looking ahead, Nvidia projects second-quarter revenue of $45 billion, plus or minus 2%, which includes the expected loss from H20 sales. The company continues to innovate with its Blackwell AI supercomputing platform, which has seen rapid adoption across various sectors.
Market Reaction:
Following the earnings announcement, Nvidia's stock experienced a 6% increase in premarket trading, reflecting investor confidence in the company's long-term growth prospects despite short-term geopolitical challenges.