NVIDIA Corporation (NASDAQ: NVDA) is a leading player in accelerated computing, developing technology that powers a range of industries including gaming, data centers, and automotive. For the first quarter of fiscal 2026, ended April 27, 2025, NVIDIA reported revenue of $44.1 billion, which represents a 69% increase from the same period a year ago and a 12% increase from the previous quarter.

Despite achieving robust top-line growth, NVIDIA’s financial results were adversely affected by new U.S. export controls on its H20 data center products designated for the China market. In this quarter, NVIDIA recognized $4.6 billion in H20 revenue, but was unable to ship an additional $2.5 billion, resulting in a $4.5 billion charge related to excess inventory and purchase obligations. The company’s data center revenue reached $39.1 billion, reflecting a year-over-year increase of 73% and a sequential increase of 10%.

GAAP gross margins were reported at 60.5%, down from 73.0% in the previous quarter and 78.4% year-over-year. Adjusted for the impact of the H20 charge, the non-GAAP gross margin for the quarter would have been approximately 71.3%. NVIDIA reported GAAP earnings of $0.76 per diluted share and non-GAAP earnings of $0.81 per diluted share, with the latter, adjusted for the H20 effects, would have been $0.96.

Operating expenses for the quarter were $5.0 billion, showing an increase of 44% year-over-year and 7% quarter-over-quarter. NVIDIA announced a return of $14.3 billion to shareholders in the form of stock repurchases and dividends during the quarter.

Looking ahead, NVIDIA’s revenue guidance for the fiscal second quarter is set at approximately $45 billion, subject to a 2% margin of error. This forecast incorporates an expected loss of about $8 billion in H20 revenue due to the new export controls. The company anticipates GAAP and non-GAAP gross margins for the second quarter to be around 71.8% and 72.0%, respectively. Operating expenses are projected to be about $5.7 billion on a GAAP basis and $4.0 billion on a non-GAAP basis. The anticipated tax rate is approximately 16.5%, plus or minus 1%.