The Nvidia stock earnings report for the first quarter of fiscal 2026, released on May 28, 2025, sent ripples through the financial world, showcasing the company’s relentless growth in the AI-driven market. Nvidia reported a staggering $44.06 billion in revenue, surpassing Wall Street’s expectations of $43.31 billion, with adjusted earnings per share of 96 cents, beating estimates of 93 cents. This performance underscores Nvidia’s dominance in the AI chip sector, though challenges like U.S. export restrictions to China cast a shadow. Let’s unpack the details of this blockbuster report and what it means for investors.
Revenue and Earnings: Breaking Down the Nvidia Stock Earnings Report
Nvidia’s Q1 fiscal 2026 results highlight its position as a juggernaut in the tech industry. The company achieved a 69% year-over-year revenue increase, driven primarily by its data center business, which raked in $39.1 billion, up 73% from the previous year. This segment, fueled by demand for AI chips like the Blackwell and Hopper series, accounts for 91% of Nvidia’s total revenue. The gaming division also shone, posting $3.8 billion in revenue, a 42% jump, while the automotive and robotics segment grew 72% to $567 million. Professional visualization, though smaller, added $509 million, up 19%.
Despite these wins, a $4.5 billion charge related to excess H20 chip inventory, prompted by U.S. restrictions on exports to China, reduced adjusted earnings per share from a potential 91 cents to 81 cents. Without this hit, Nvidia’s performance would have been even more impressive. The company’s gross margin stood at 73%, reflecting the high costs of transitioning to complex data center systems. These figures paint a picture of robust growth tempered by geopolitical hurdles.
Data Center Dominance and AI Momentum
The Nvidia stock earnings report reaffirms the company’s stranglehold on the AI chip market. CEO Jensen Huang emphasized “incredibly strong” global demand for Nvidia’s AI infrastructure, particularly the Blackwell platform, which generated $11 billion in Q4 2025 alone. Major cloud providers like Microsoft, Google, Oracle, and Amazon, which account for significant Blackwell spending, continue to fuel this growth. Huang noted that AI inference demand is accelerating, with innovations like China’s DeepSeek R1 model highlighting the need for more GPU power.
The report also addressed concerns about slowing growth. While Q1’s 69% revenue increase is slower than the 262% surge in Q1 2025, it remains remarkable for a company with a $3.2 trillion market cap. Nvidia’s ability to scale production of Blackwell AI supercomputers, achieving billions in sales in its first quarter, signals sustained momentum. However, the gaming and networking segments face margin pressures, and investors are watching closely for signs of stabilization.
| Segment | Q1 2026 Revenue | Year-over-Year Growth |
|---|---|---|
| Data Center | $39.1 billion | 73% |
| Gaming | $3.8 billion | 42% |
| Automotive & Robotics | $567 million | 72% |
| Professional Visualization | $509 million | 19% |
Challenges: China and Market Sentiment
Geopolitical tensions loomed large in the Nvidia stock earnings report. U.S. restrictions on chip exports to China, implemented on April 9, 2025, effectively closed a $50 billion market for Nvidia’s AI chips. Huang acknowledged the loss of the H20 chip business in China, stating the company would consult the U.S. government on any new chip designs for the region. This development contributed to a $2.5 billion revenue shortfall in Q1 and sparked a 0.5% dip in Nvidia’s stock price during regular trading on May 28, though it rebounded 6% in after-hours trading.
Market sentiment remains mixed. While Nvidia’s results exceeded expectations, some investors worry about the sustainability of its growth amid fears of an AI infrastructure oversupply. Recent reports of Microsoft adjusting data center plans raised concerns, though the company reaffirmed its $80 billion AI investment for 2025. Nvidia’s stock, down 10% from its January peak, reflects this uncertainty, yet analysts see a 38% upside with a $175 price target.
Looking Ahead: Q2 Guidance and Strategic Moves
Nvidia’s guidance for Q2 2026 projects $45 billion in revenue, slightly below the $45.66 billion consensus, suggesting cautious optimism. The company anticipates a “significant ramp” in Blackwell sales, with cloud providers driving demand. Huang teased exciting announcements for the upcoming GPU Technology Conference in March 2026, including advancements in Blackwell Ultra and the Vera Rubin superchip. These innovations could further solidify Nvidia’s lead in AI computing.
The company also made strategic moves, such as announcing NVLink Fusion, which integrates non-Nvidia chips into data center stacks, expanding its market reach. Additionally, Nvidia’s $33.7 billion in share repurchases in fiscal 2025 reflects confidence in its long-term value, even as it navigates a complex global landscape.
Why Nvidia Remains a Powerhouse
Nvidia’s Q1 fiscal 2026 earnings report cements its role as the backbone of the AI revolution. Despite challenges in China and margin pressures, the company’s ability to deliver record-breaking revenue and innovate at scale keeps it ahead of competitors. The data center segment’s dominance, coupled with growth in gaming and automotive, positions Nvidia for continued success. Investors, however, must weigh the risks of geopolitical restrictions and market volatility against the company’s unmatched technological edge.
For those eyeing Nvidia stock, the post-earnings bounce suggests renewed confidence, but volatility remains a factor. Options traders anticipate a 6% move post-earnings, reflecting the stock’s wild swings. With a 35% average annual earnings growth forecast for the next three to five years, Nvidia remains a compelling, if high-stakes, investment.
Stay Informed and Act
Want to dive deeper into Nvidia’s trajectory? Follow its upcoming GPU Technology Conference for insights into AI advancements and track its stock for potential buying opportunities. Stay updated with real-time market analysis to make informed decisions.