Nvidia reported record revenue of $44 billion, but China’s ban on H20 shipments slashed margins
By ForGeeks Nvidia reported financial results for the first quarter of fiscal 2026, recording record revenue of $44.062 billion. The company’s sales were up on nearly all fronts, both quarter-over-quarter and year-over-year. However, the recent U.S. ban on H20 GPU exports to China has negatively impacted Nvidia’s gross margin.
Record quarter with margin decline
Nvidia reported GAAP revenue of $44.062 billion for the first quarter of fiscal 2026, up 12% from the previous quarter and 69% above the result for the same period last year. Gross margin declined to 60.5% due to a one-time write-down of $4.5 billion in H20 inventory caused by new U.S. export restrictions imposed in April.
Excluding this write-down, Nvidia’s adjusted margin would have been 71.3%, also down from prior periods of 78.9% in the first quarter of fiscal 2025 and 73.5% in the fourth quarter of fiscal 2025. The company reported operating income of $21.6 billion, down 10% from the previous quarter but up 28% year-over-year. Nvidia’s net income reached $18.8 billion, down 15% from the previous quarter but up 26% year-over-year.
Nvidia’s net income was $18.8 billion, down 15% from the previous quarter but up 26% year-over-year.
Record performance in data center and gaming product segments
Nvidia’s data center revenue reached a record $39.112 billion, of which $34.155 billion came from computing solutions and $4.957 billion from networking products. These figures reflect a 10% quarter-on-quarter and 73% year-on-year growth, driven by strong global demand for AI infrastructure. Nvidia emphasized that the transition to the Blackwell architecture is nearly complete and the bulk of customers prefer Blackwell-based solutions, although interest in Hopper processors remains.
«Our breakthrough Blackwell NVL72 supercomputer — ‘a thinking machine’ designed to solve reasoning problems — is now in volume production and available to system integrators and cloud providers»” said Nvidia founder and CEO Jensen Huang. «Global demand for Nvidia’s AI infrastructure remains exceptionally strong. AI token generation has grown 10-fold in a year, and as AI agents become massively distributed, demand for computing power will only increase».
Nvidia’s AI token generation has grown 10-fold in a year, and as AI agents become more widespread, the demand for computing power will only increase».
In the gaming products segment, Nvidia also recorded record revenue of $3.8 billion, up 48% from the previous quarter and 42% above the result for the same period last year. The growth is attributed to both delays in gaming GPU shipments in the previous quarter and the successful launch of the new GeForce RTX 5070 and 5060 graphics cards based on the Blackwell architecture.
According to Nvidia, the growth was driven by the launch of the new GeForce RTX 5070 and 5060 graphics cards based on the Blackwell architecture.
The OEM and Other segment reported revenue of $111 million, down 12% from the previous quarter but up 42% year-over-year.
Professional graphics and the impact of duties
Nvidia’s Professional Graphics (ProViz) segment revenue totaled $509 million, down slightly from $511 million in the prior quarter but 19% above results from a year ago. This data may indicate continued demand for professional graphics solutions based on the Ada Lovelace architecture, despite the expected launch of RTX Pro on the Blackwell architecture in May. Customers are probably cautious about purchases due to the uncertainty surrounding U.S. duties.
The article Nvidia reports record $44 billion in revenue, but China’s H20 shipping ban slashes margins was first published on ITZine.ru.
