On May 28, 2025, Nvidia released its financial report for the first quarter of fiscal year 2026. The report shows a mixed performance, with revenue beating expectations but earnings falling short. Meanwhile, the company predicts an $8 – billion – hit to its second – quarter revenue due to US chip export curbs to China. Here are the details:
Q1 Financial Results
Revenue Growth: Nvidia reported revenues of $44.1 billion, a 12% increase from the previous quarter and 69% higher than a year ago. This figure beats Zacks analyst estimates of $42.91 billion by nearly 2.7%.
Earnings per Share Miss: The company posted an earnings per share of 81 cents, falling short of analyst estimates of 85 cents per share. Nvidia recorded a net income of $18.8 billion, up 26% compared to a year ago.
Impact of US Chip Curbs
First – Quarter Impact: The lower – than – expected income in the first quarter was due to a $4.5 – billion charge resulting from the US government’s restrictions on exporting its high – powered H20 artificial intelligence chips to China. The H20 chips brought in $4.6 billion in sales in the first quarter, but the company was unable to ship an additional $2.5 billion in potential revenue during the quarter.
Second – Quarter Forecast: In its outlook for the second quarter, Nvidia expects revenues around $45 billion, which reflects a loss in H20 revenue of approximately $8.0 billion due to the recent export control limitations.
Company Response
Nvidia will launch a new lower – cost AI chip specifically for China, with mass production expected to start in June. Additionally, the company is expanding global AI infrastructure initiatives, launching partnerships in the US, Saudi Arabia, Taiwan, and the UAE, and introducing Blackwell Ultra GPUs, NVLink Fusion, and DGX Cloud Lepton.
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