Nvidia on Wednesday disclosed its financial results for the first quarter of its fiscal 2026, posting revenue of $44.062 billion — its best quarter ever.
The company’s sales increased almost across the board both in terms of quarter-over-quarter and year-over-year comparisons. As the company ramped up its Blackwell GPUs, it also set revenue records both for gaming and datacenter revenues. But the recent shipments ban of H20 GPUs to China hurt Nvidia’s margins quite significantly.
Record quarter
For the first quarter of fiscal 2026, Nvida reported GAAP revenue of $44.062 billion, marking a 12% rise quarter-over-quarter (QoQ) and a 69% increase year-over-year (YoY). The company’s gross margin fell sharply to 60.5%, primarily due to a $4.5 billion charge related to writing down of H20 inventory due to the latest U.S. export restrictions imposed in early April.
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Without the charge, Nvidia’s non-GAAP margin would have been 71.3%, still considerably lower than 78.9% in Q1 FY2025 or 73.5% in Q4 FY2025. Nvidia’s operating income was $21.6 billion, down 10% from the prior quarter but up 28% year-over-year, as for net income, it reached $18.8 billion, a 15% sequential decline but a 26% increase from the same period a year ago.