Revenue Reaches $44.1 Billion, Net Profit Hits $18.8 Billion
Up 69% and 26% Year-on-Year
Data Center Revenue Grows by 73%
$8 Billion Revenue Loss Due to H20 Export Controls to China
Nvidia, the leading artificial intelligence (AI) stock, posted a surprise earnings result for the first quarter of this year. Thanks to results that exceeded expectations, Nvidia's share price is soaring by about 5% in after-hours trading.
On May 28 (local time), Nvidia announced that its revenue for the first quarter of fiscal year 2026 (February to April 2025) reached $44.06 billion, and net profit was $18.8 billion, representing increases of 69% and 26%, respectively, compared to the same period last year. Adjusted earnings per share (EPS) came in at $0.96.
This performance surpassed market expectations. Previously, market research firm LSEG had projected Nvidia's revenue to be $43.31 billion and EPS to be $0.93.
In detail, revenue from the main data center segment, which includes AI chips and related components, grew by 73% year-on-year to $39.1 billion, driving overall revenue growth. This demonstrates that demand for AI semiconductors continues to expand, fueled by the proliferation of generative AI applications such as OpenAI's ChatGPT. Revenue from Nvidia's gaming segment, which includes chips for three-dimensional (3D) games, was $3.8 billion, up 42% from the same period last year.
Nvidia recently stated that its revenue would have been $8 billion higher if it were not for the Trump administration's export control measures on the H20 to China. In the past, Nvidia had developed the lower-performing H20, compared to the H100, to sell to China and avoid U.S. export restrictions. However, since the Trump administration banned exports of the H20 as well, the company has faced difficulties in its China business.
Meanwhile, following the earnings announcement that exceeded expectations, Nvidia's share price was surging by more than 5% in after-hours trading as of 4:57 p.m. Eastern Time on the same day.
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