NVIDIA delivered a compelling QQ1 2026 performance characterized by outsized revenue growth and exceptionally strong profitability underpinned by continued leadership in AI compute. Revenue totaled $44.062 billion, up 46.68% year over year and up 12.03% quarter over quarter, with gross profit of $26.668 billion and a gross margin of approximately 60.5%. Operating income reached $21.638 billion, yielding an operating margin near 49.1%, and net income was $18.775 billion, a net margin of roughly 42.6%. Diluted earnings per share stood at $0.76 as reported, with GAAP EPS of $0.77, supported by a robust share repurchase program that contributed to shareholder value while sustaining a strong cash flow profile.
The company generated $27.414 billion of operating cash flow and $26.187 billion in free cash flow during the quarter, reflecting the cash-generative nature of NVIDIA’s AI-centric business model. Cash and cash equivalents plus short-term investments stood around $52.691 billion, underpinning a substantial net cash position that provides strategic optionality for R&D, M&A, and capex in a high-growth AI cycle. On the balance sheet, NVIDIA reported total assets of $125.254 billion and total stockholders’ equity of $83.843 billion, with a conservative liability structure that emphasizes liquidity and financial flexibility.
Management commentary, where available in the provided transcript data, emphasizes continued momentum in data center AI deployments, hyperscaler demand, and product transitions toward higher-margin AI accelerators. The long-duration AI demand backdrop, combined with disciplined capital allocation, positions NVIDIA well against a challenging macro environment. However, potential headwinds include supply chain dynamics, geopolitical considerations impacting AI hardware exports, and competitive pressures as rivals advance alternative AI accelerators. Investors should monitor AI workflow demand, memory pricing dynamics (HBM/memory subsystem), and capex signals from hyperscale customers as the AI cycle evolves.