NVIDIA reported Q1 FY2026 revenue of $44.1 billion, up 69% year-over-year, driven largely by its data center segment, which hit a record $39.1 billion—up 73% from a year ago. This growth underscores surging demand for NVIDIA’s AI infrastructure, including the new Blackwell NVL72 “reasoning” supercomputer, NVLink Fusion networking, and Spectrum-X switches targeting hyperscale AI deployments.
However, the company absorbed a $4.5 billion charge after the U.S. government imposed export restrictions on its H20 products to China. NVIDIA was unable to ship an additional $2.5 billion of H20 inventory and projects a further $8 billion revenue impact in Q2. Even with the hit, non-GAAP gross margin excluding the charge would have reached 71.3%.
CEO Jensen Huang emphasized a global shift toward building “AI factories” as essential infrastructure. NVIDIA highlighted recent partnerships in Saudi Arabia (with HUMAIN), the UAE (with G42 and others), Taiwan (with Foxconn), and major cloud providers. Blackwell instances are now available on AWS, Google Cloud, Azure, and OCI. NVIDIA also launched DGX Cloud Lepton and the open-source Llama Nemotron models for AI agents.
- Data Center revenue reached $39.1B in Q1 FY2026, up 10% QoQ and 73% YoY
- H20 China export restrictions triggered $4.5B inventory charge; $2.5B in missed revenue
- Gross margin (non-GAAP) would have been 71.3% excluding H20 impact
- Q2 outlook: $45B revenue expected; $8B H20 drag included
- Blackwell-powered systems now shipping via cloud and OEM channels globally
- AI infrastructure expansion includes new systems, networking, software platforms, and global factory partnerships
- Gaming revenue hit $3.8B, up 48% QoQ; Automotive rose 72% YoY to $567M
“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.”
