Nvidia(US:NVDA) ZACKSยท2025-05-29 15:46Core Viewpoint - NVIDIA Corporation reported mixed financial results for the first quarter of fiscal 2026, with earnings per share missing estimates but revenues showing significant year-over-year growth driven by strong performance across various segments [1][2]. Financial Performance - Non-GAAP earnings for the first quarter were 81 cents per share, missing the Zacks Consensus Estimate by 4.71%, but increased 32.8% year over year and declined 9% sequentially [1]. - Revenues reached $44.06 billion, up 69.2% year over year and 12% sequentially, surpassing the consensus estimate by 2.67% [2]. Segment Analysis - NVIDIA's revenues are categorized into two segments: Graphics and Compute & Networking [3]. - The Graphics segment contributed 10.2% of total revenues, with a year-over-year increase of 33% to $4.47 billion, although it fell short of estimates [4]. - Compute & Networking accounted for 89.8% of revenues, with a significant year-over-year growth of 75% to $39.6 billion, exceeding estimates [5]. Market Platform Performance - Data Center revenues, making up 88.8% of total revenues, increased 73.3% year over year to $39.1 billion, driven by demand for Blackwell GPU platforms [6]. - Gaming revenues rose 30.7% year over year to $3.76 billion, reflecting strong demand from various user groups [7]. - Professional Visualization revenues increased 19.2% year over year to $509 million, while Automotive sales grew 72.3% year over year to $567 million [8][9]. - OEM and Other revenues were up 42.3% year over year to $111 million [10]. Operating Metrics - Non-GAAP gross margin was 61%, down 17.9 percentage points year over year due to a $4.5 billion charge related to inventory issues [12]. - Non-GAAP operating expenses rose 43% year over year to $3.58 billion, but as a percentage of total revenues, they decreased to 8.1% [13]. - Non-GAAP operating income increased 29% year over year to $23.28 billion, with a decline in operating margin to 52.8% [14]. Balance Sheet and Cash Flow - As of April 27, 2025, NVIDIA had cash and marketable securities of $53.7 billion, up from $43.2 billion [14]. - Operating cash flow was $27.4 billion, significantly higher than the previous year [15]. - The company returned $244 million to shareholders through dividends and repurchased $14.1 billion in stocks [16]. Guidance - For the second quarter of fiscal 2026, NVIDIA anticipates revenues of $45 billion, slightly below the consensus estimate, with a projected non-GAAP gross margin of 72% [17].