Nvidia Q1 revenue beats estimates, AI demand drives strong growth
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Nvidia reported $44.1 billion in revenue for Q1 FY2026, ending April 27, 2025—up 12% quarter-on-quarter and 69% year-on-year, beating the $43.3 billion expected by analysts. The AI boom continues to fuel demand, with Data Center revenue at $39.1 billion (+73% YoY), Gaming at a record $3.8 billion (+42%), and Automotive at $567 million (+72%).
The company faced a $4.5 billion charge due to export license restrictions on its H20 chips to China, impacting inventory and purchase obligations. Despite selling $4.6 billion in H20 products, Nvidia couldn’t fulfill $2.5 billion in additional orders.
Adjusted gross margin was 61.0% (71.3% excluding the H20 charge), while EPS came in at $0.81 adjusted and $0.96 excluding the charge—above analyst expectations of $0.93. CEO Jensen Huang highlighted surging global demand for Nvidia’s AI infrastructure, calling AI the new essential infrastructure alongside electricity and the internet.
Nvidia forecasts Q2 revenue at $45 billion (±2%) and gross margins near 72%. The company will pay a $0.01 dividend on July 3, 2025.
The company faced a $4.5 billion charge due to export license restrictions on its H20 chips to China, impacting inventory and purchase obligations. Despite selling $4.6 billion in H20 products, Nvidia couldn’t fulfill $2.5 billion in additional orders.
Adjusted gross margin was 61.0% (71.3% excluding the H20 charge), while EPS came in at $0.81 adjusted and $0.96 excluding the charge—above analyst expectations of $0.93. CEO Jensen Huang highlighted surging global demand for Nvidia’s AI infrastructure, calling AI the new essential infrastructure alongside electricity and the internet.
Nvidia forecasts Q2 revenue at $45 billion (±2%) and gross margins near 72%. The company will pay a $0.01 dividend on July 3, 2025.