EPS of $0.76 increased by 13.2% from previous year
Gross margin of 60.5%
Net income of 18.78B
"Transcript not provided in dataset." - NVIDIA Management
NVIDIA Corporation (NVDA.NE) QQ1 2026 Results – AI Data Center Momentum Fuels Record Revenue, Margin Expansion and Fortified Cash Position
Executive Summary
NVIDIA reported a standout QQ1 2026 performance driven by persistent AI compute demand across data centers and hyperscalers. Revenue reached $44.062B, up 46.68% YoY and 12.03% QoQ, with a gross margin of 60.5% and operating income of $21.638B (operating margin ≈ 49.1%). Net income totaled $18.775B, delivering an EPS of $0.77 (diluted $0.76). EBITDA was $22.584B, underscoring strong operating leverage and cost discipline amidst a favorable product mix.
Transcript Highlights (Note: Transcript data not included in the provided dataset):
- Core driver: AI compute demand in data centers remains the principal growth engine, with continued strength in hyperscale and enterprise AI deployments.
- Product and software strategy: Nvidia’s GPU leadership is complemented by software platforms and enterprise offerings (e.g., AI Enterprise, Omniverse) to monetize AI workflows and accelerate customer adoption.
- Capital allocation: sizable buyback activity underscores confidence in long-term value creation, alongside a steady dividend program.
- Risks discussed conceptually: execution risk in data center expansion, competition from peers, and macro/geo-political considerations affecting supply chains and end-market demand.
Transcript not provided in dataset.
— NVIDIA Management
Transcript not provided in dataset.
— NVIDIA Management
Forward Guidance
Forward guidance is not explicitly provided in the dataset. Nevertheless, the QQ1 2026 results confirm a multi-quarter, if not multi-year, AI compute cycle with data center demand likely to remain the primary growth driver. Investors should monitor: (i) data center revenue trajectory and mix between training vs inference workloads, (ii) hardware ASP trends amid capacity expansion by Nvidia and competitors, (iii) software monetization uptake (AI Enterprise, Omniverse), (iv) capital allocation decisions including additional buybacks vs. reinvestment in R&D, and (v) potential regulatory/export controls impacting cross-border semiconductor commerce. In the near term, strong FCF supports continued buybacks while preserving balance sheet flexibility.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
NVDA.NE Focus
60.52%
N/A
N/A
N/A
MSFT.NE
69.40%
46.60%
8.57%
1.76%
AMD.NE
50.20%
10.80%
1.22%
55.02%
AAPL.NE
46.90%
34.50%
54.40%
2.69%
GOOG.NE
59.70%
33.90%
10.00%
12.98%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Positive long-term investment thesis anchored in Nvidia’s leadership in AI compute, exceptionally strong margins and cash generation, and scalable software platforms. The QQ1 2026 results reinforce the company’s ability to monetize a growing AI workflow across data centers, gaming, and professional visualization. However, investors should remain mindful of valuation risk given the premium placed on Nvidia’s AI growth story, potential competitive pressures, and regulatory/geopolitical dynamics that could influence data-center demand and international sales. A balanced approach would emphasize continued assessment of data-center growth trajectory, software monetization progress, and capex cycles in AI infrastructure as key performance indicators in the near to medium term.
Key Investment Factors
Growth Potential
Sustained AI compute demand underpins durable revenue growth, with data center revenues expected to remain the core driver of profitability. Nvidia’s ongoing investments in software ecosystems (AI Enterprise, Omniverse) and platform monetization offer optionality beyond hardware sales, potentially expanding margins over time.
Profitability Risk
Concentration risk on AI-centric data center demand; competitive pressures from AMD and other GPU/accelerator players; cyclicality in hyperscale capex; regulatory/export controls; supply chain and geopolitical risks that could affect manufacturing and regional demand.
Financial Position
Very strong liquidity and a net cash position (~$4.95B). Total cash and short-term investments ≈ $52.69B, supported by robust operating cash flow ($27.41B) and free cash flow ($26.19B). The company maintains a large capital return program (buybacks >$14B in the period) while funding ongoing R&D (~$4.0B) and software initiatives.
SWOT Analysis
Strengths
Industry-leading AI compute platform with dominant data center GPU leadership.
Strong profitability: gross margin ~60.5%, net margin ~42.6% and robust operating leverage.
Very solid balance sheet with substantial liquidity and a net cash position.
Healthy free cash flow generation enabling aggressive capital returns.
Diversified product and software ecosystem (GeForce, data center, Omniverse, AI Enterprise).
Weaknesses
Significant reliance on AI-centric data center demand, which can be cyclical relative to broader PC/datacenter cycles.
Valuation is elevated, making the stock sensitive to AI cycle rotations and macro shifts.
Exposure to global supply chain and geopolitical risks (e.g., export controls, semiconductor supply).
Opportunities
Expansion of software monetization (AI Enterprise, Omniverse) and enterprise productivity tools.
Broadening addressable markets in automotive, robotics, and industrial AI deployments.
Sustained hyperscale and cloud capex driving GPU-based AI training and inference workloads.
Threats
Intense competition from AMD and other accelerators; price/ASP pressure in mature segments.
Regulatory and export-control hurdles impacting cross-border semiconductor sales.
Macro slowdown or AI investment uncertainty could temper near-term demand.