NVIDIA Delivers Strong Q1 2026 Results Amid Challenging Market Conditions
NVIDIA, a leading technology company, has reported strong financial results for the first quarter of fiscal 2026, with revenue exceeding expectations despite operating in a challenging environment.
According to Colette Kress, Executive Vice President and Chief Financial Officer, the company delivered another strong quarter with revenue of $44 billion, up 69% year-over-year. Data Center revenue was particularly impressive, growing 73% year-on-year due to increased demand for AI workloads and factory build-outs.
The growth in Data Center revenue can be attributed to the successful ramp-up of NVIDIA's Blackwell product line, which drove a significant increase in compute revenue. The introduction of GB200 NVL, a fundamental architectural change that enables data center-scale workloads at low cost per inference token, was also a key contributor to this growth.
NVIDIA's customers are committed to their AI and data center build-outs, with major hyperscalers deploying thousands of GPUs per week. Microsoft, for example, has already deployed tens of thousands of Blackwell GPUs and is expected to ramp up to hundreds of thousands of GB200s with OpenAI as one of its key customers.
However, the company faced a challenge in the form of new export controls on H20, NVIDIA's data center GPU designed specifically for the China market. Although revenue from H20 was recognized prior to April 9, the introduction of the export controls prevented NVIDIA from shipping $2.5 billion in revenue in the first quarter.
NVIDIA also took a $4.5 billion charge as they wrote down inventory and purchase obligations tied to orders received prior to April 9. The company is still evaluating its options for supplying data center compute products compliant with the revised export control rules, which would be a significant loss of access to the China AI accelerator market.
According to Jensen Huang, President and Chief Executive Officer, NVIDIA's ability to adapt and innovate has allowed them to maintain their position in the market despite these challenges. The company's focus on developing next-generation products like GB300 will help them remain competitive in a rapidly evolving industry.
NVIDIA's commitment to innovation and customer satisfaction is clear, even in the face of adversity. As the company continues to push the boundaries of AI and computing, it is likely that they will find ways to overcome these challenges and emerge stronger than ever.
