NVIDIA Reports $44.1B Q1 Revenue Amid $4.5B China Export Charge
NVIDIA achieves $44.1 billion in first-quarter fiscal 2026 revenue, representing a 69% year-over-year increase, but takes a massive $4.5 billion charge due to new U.S. export restrictions on H20 products to China.
NVIDIA reports $44.1 billion in revenue for the first quarter of fiscal 2026, marking a 12% increase from the previous quarter and a 69% surge compared to the same period last year. Despite this massive top-line growth, the company faces significant financial disruptions from new U.S. government export regulations that require a license for shipping H20 products to the China market.
As a direct result of these export restrictions, NVIDIA takes a $4.5 billion charge in the first quarter to cover H20 excess inventory and unfulfilled purchase obligations. The company records $4.6 billion in H20 sales prior to the new licensing requirements but loses out on an additional $2.5 billion of revenue because it is unable to ship the affected products. Without this substantial charge, non-GAAP gross margins sit at a healthy 71.3% rather than the reported 61.0%.
Looking past the regulatory setback, CEO Jensen Huang highlights that the Blackwell NVL72 AI supercomputer is now in full-scale production across cloud service providers and system manufacturers. He notes that global demand for AI infrastructure remains incredibly strong, with AI inference token generation surging tenfold over the past year, and emphasizes that countries worldwide increasingly view AI as essential infrastructure.