Nvidia(US:NVDA)2025-05-28 20:32Revenue Performance - Revenue for the first quarter of fiscal year 2026 was $44.1 billion, representing a 69% increase year-over-year and a 12% increase sequentially [118]. - Data Center revenue reached $39.1 billion, up 73% year-over-year and 10% sequentially, driven by demand for accelerated computing platforms [121]. - Gaming revenue increased by 42% year-over-year and 48% sequentially, supported by sales of the Blackwell architecture [122]. - Automotive revenue grew by 72% year-over-year, driven by sales of self-driving platforms, but decreased by 1% sequentially [123]. - Compute & Networking revenue increased by 29% year-over-year to $22,054 million, driven by demand for accelerated computing platforms for AI applications [130]. - Data Center compute revenue was $34.2 billion, up 76% year-over-year and 5% sequentially, while networking revenue was $5.0 billion, up 56% year-over-year and 64% sequentially [121]. - Data Center computing revenue grew 76% year-over-year, while Data Center networking revenue increased by 56% year-over-year, attributed to the Blackwell computing platform and NVLink compute fabric [130]. - Revenue from customers outside the United States accounted for 53% of total revenue, up from 48% in the previous year [138]. - The company estimates that two indirect customers contributed to 10% or more of total revenue, primarily through system integrators and distributors [136]. Financial Charges and Expenses - The company incurred a $4.5 billion charge in the first quarter of fiscal year 2026 due to new export licensing requirements for H20 products, impacting current and future revenue [108]. - Gross margin decreased to 60.5%, down from 78.4% a year ago, primarily due to the $4.5 billion charge related to H20 excess inventory [118]. - Operating expenses increased by 44% year-over-year to $5.0 billion, driven by higher compensation and development costs for new product introductions [124]. - Research and development expenses increased by 47% to $3,989 million, driven by a 34% rise in compensation and benefits and a 182% increase in engineering development costs [142]. - Total operating income rose to $21,638 million, a 28% increase from the previous year, despite a $4.5 billion charge related to excess inventory [132]. - Income tax expense was $3.1 billion, with an effective tax rate of 14.3%, reflecting a lower tax benefit from stock-based compensation [147]. Strategic Initiatives - The company plans to increase U.S.-based manufacturing to strengthen its supply chain and meet growing demand for AI infrastructure [115]. - The company is evaluating options to supply Data Center compute products compliant with U.S. government export control rules, which may hinder its ability to compete in the China market [109]. Liquidity and Share Repurchase - Cash and cash equivalents totaled $15,234 million, with marketable securities at $38,457 million, resulting in total liquidity of $53,691 million as of April 27, 2025 [150]. - The company repurchased 126 million shares for $14.5 billion during the first quarter of fiscal year 2026, with an authorization to repurchase up to $24.3 billion [156]. Regulatory and Risk Factors - No material changes in contractual obligations since the Annual Report for the fiscal year ended January 26, 2025 [163]. - No material impact from global sustainability regulations or climate-related business trends on operational results [164]. - No adoption of new accounting pronouncements reported [165]. - No material changes in investment and interest rate risks since January 26, 2025 [166]. - No material changes in foreign exchange rate risks since January 26, 2025 [167].