NVIDIA has released its results for the first quarter of fiscal 2026, showing steady performance. But the company expects roughly $8 billion in lost H20 revenue due to export control restrictions, a hit that may show up in the next quarterly report.

NVIDIA has released results for the first quarter of fiscal 2026, ended April 27, 2025, with overall performance remaining solid. Founder and CEO Jensen Huang said the breakthrough Blackwell NVL72 AI supercomputer is now in full production across system makers and cloud service providers, and that global demand for NVIDIA infrastructure is very strong. Countries around the world see AI as essential infrastructure, like electricity and the internet, he said, and demand for AI computing will accelerate, with NVIDIA at the center of this profound shift.

The earnings report showed NVIDIA's revenue in the first quarter of fiscal 2026 reached $44.062 billion, above market expectations of $43.29 billion, up 69% year on year and 12% quarter on quarter. Net income was $18.775 billion, up 26% year on year but down 15% from the previous quarter. Gaming revenue was $3.8 billion, down 42% year on year and up 42% quarter on quarter. Data center revenue set another record at $39.1 billion, up 73% year on year and 10% sequentially. Visualization revenue was $509 million, up 19% year on year and roughly flat from the prior quarter. Automotive and robotics revenue was $567 million, up 72% year on year and down 1% quarter on quarter. NVIDIA's gross margin was 60.5%, down 17.9 percentage points from 78.4% a year earlier and down 12.5 percentage points from 73% in the previous quarter. NVIDIA will pay its next quarterly cash dividend of $0.01 per share on July 3, 2025, to all shareholders of record as of June 11, 2025.

NVIDIA had previously been notified that exports of its H20 compute cards to the Chinese market would require a license, reducing market demand for the H20. In the first quarter of fiscal 2026, NVIDIA recorded $4.5 billion in charges related to excess H20 inventory and purchase obligations. Before the new export licensing requirement, H20 sales in the first quarter of fiscal 2026 totaled $4.6 billion. Another $2.5 billion worth of H20 products were not shipped during the quarter. Looking ahead to the second quarter of fiscal 2026, NVIDIA expects revenue to continue rising to $45 billion, plus or minus 2%, with GAAP gross margin at 71.8%, plus or minus 50 basis points. NVIDIA said recent export control restrictions caused about $8 billion in lost H20 revenue, and that it will aim to reach a 70% gross margin later this year.