EPS of $0.76 increased by 13.2% from previous year
Gross margin of 60.5%
Net income of 18.78B
"No transcript data available." -
NVIDIA Corporation (NVD.DE) QQ1 2026 Results: AI Compute Leadership Drives Record Revenue, Margin Strength and Fortified Balance Sheet
Executive Summary
NVIDIA reported a standout QQ1 2026 performance driven by continued, broad-based demand for AI compute across data center, HPC, and enterprise workloads. Revenue reached USD 44.062 billion, up 46.68% year over year and 12.03% quarter over quarter, underscoring the secular AI tailwinds that NVIDIA has fostered through its CUDA ecosystem and family of AI accelerators. The gross margin remained exceptionally robust at 60.5%, enabling a high level of profitability with an operating margin near 49.1% and a net income margin around 42.6%. Net income for the quarter totaled USD 18.775 billion and diluted EPS stood at USD 0.76–0.77, reflecting operating leverage and favorable product mix.
Cash flow and capital allocation remained exceptionally strong. Operating cash flow was USD 27.414 billion, and free cash flow amounted to USD 26.187 billion, while cash and short-term investments aggregated USD 52.691 billion. NVIDIA ended the period with a net cash position of approximately USD 4.949 billion and total liquidity ample to fund R&D and capacity expansion. The company returned capital aggressively, repurchasing USD 14.095 billion of stock and paying USD 0.244 billion in dividends, signaling strong conviction in the long-term AI addressable market. Management commentary remains constructive on secular AI adoption and hyperscale demand, though the quarter did see a modest QoQ gross margin decline and sensitivities to product mix and cycle timing.
Overall, the QQ1 2026 result solidifies NVIDIA’s leadership position in AI compute and data center GPUs, while preserving a best-in-class balance sheet and generous free cash flow profile. Investors should monitor the pace of AI buildouts across hyperscalers, potential supply-demand dynamics in memory and interconnect components, and ongoing competitive developments as key drivers of near-term cadence and longer-term growth trajectory.
Revenue: USD 44.062B; YoY +46.68%, QoQ +12.03%
- Gross Profit: USD 26.668B; Gross Margin 60.52%; YoY +18.14%, QoQ -7.15%
- Operating Income: USD 21.638B; Operating Margin 49.11%; YoY +16.07%, QoQ -9.97%
- Net Income: USD 18.775B; Net Margin 42.61%; YoY +13.11%, QoQ -15.01%
- EPS (Diluted): USD 0.76; EPS (GAAP): USD 0.77; YoY +13.24%, QoQ -14.44%
- Operating Cash Flow: USD 27.414B; Free Cash Flow: USD 26.187B; Capex: USD 1.227B
- Balance Sheet: Cash & Short-Term Investments USD 52.691B; Cash and Cash Equivalents USD 15.234B; Total Liabilities USD 41.411B; Total Assets USD 125.254B; Net Debt:USD -4.949B (net cash)
- Liquidity/Returns: Net cash provided by financing activities negative USD 15.553B (net share repurchases USD 14.095B and dividends USD 0.244B); cash at period-end USD 15.234B; total stockholders’ equity USD 83.843B
- Coverage and Margins: EBITDA USD 22.584B; EBITDARatio 0.513; Net Income Margin 42.61%; Revenue mix skewed toward AI data center and enterprise solutions, supporting high margin profile and substantial FCF generation.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
44.06B
46.68%
12.03%
Gross Profit
26.67B
18.14%
-7.15%
Operating Income
21.64B
16.07%
-9.97%
Net Income
18.78B
13.11%
-15.01%
EPS
0.77
13.24%
-14.44%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcripts were not provided in the supplied data. Analysis below relies on the disclosed financial results and management discussion as available. If transcripts are provided, key themes typically include: strategy execution on CUDA/AI software ecosystem, data center demand trajectory, product cycle visibility for next-generation GPUs, and commentary on supply chain and pricing dynamics.
No transcript data available.
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No transcript data available.
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Forward Guidance
No explicit quarterly guidance was issued in the provided material. Inference suggests management remains confident in sustained AI compute demand and data center expansion, supported by the strength of the CUDA ecosystem and software strategies such as NVIDIA AI Enterprise. Investors should monitor: (1) realized and anticipated data center growth cadence, (2) memory/interconnect supply constraints (e.g., HBM capacity, PCIe/NVLink fabric throughput) that could affect capacity expansion, (3) ASP/mix shifts across product generations, and (4) capital allocation decisions (buybacks vs. investment in R&D and capacity). Achievability assessment remains favorable given continued AI workload demand, though macro headwinds or a sharper-than-expected slowdown in hyperscaler capex could modulate growth tempo.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
NVD.DE Focus
60.52%
N/A
N/A
N/A
MSF.DE
69.40%
46.60%
8.57%
32.40%
AMZ.DE
50.60%
11.80%
5.60%
29.06%
APC.DE
46.90%
34.50%
54.40%
26.01%
TL0.DE
16.30%
2.06%
0.55%
496.82%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
NVIDIA remains a premier beneficiary of the secular AI compute trend, with QQ1 2026 results reinforcing its leadership position in data center GPUs and software ecosystems. The scale of revenue, profitability, and FCF generation supports a constructive investment thesis, including the potential for continued buybacks and disciplined reinvestment into R&D and capacity expansion. However, the rapid growth trajectory is priced into current valuations, and near-term performance will hinge on the durability of hyperscaler AI spending, memory/interconnect supply dynamics, and the pace of new product introductions. The key catalysts to watch include: (1) data center order flow and run-rate trajectory for next-gen accelerators, (2) progress on software monetization and enterprise adoption, (3) supply chain normalization or constraint developments, and (4) competitive developments and pricing discipline from peers. Overall, the risk-reward remains skewed to the upside for investors with a long-term AI exposure view, provided valuations remain justifiable relative to growth and cash generation potential.
Key Investment Factors
Growth Potential
Large and durable TAM driven by AI model training and inference; CUDA ecosystem moat; ongoing data center and AI infrastructure buildouts; potential monetization from software (NVIDIA AI Enterprise) and Omniverse platforms; substantial FCF enables aggressive repurchases and strategic investments in new generations of accelerators and interconnects.
Profitability Risk
Concentration risk in AI/DSC demand; competitive pressure from AMD, Intel, and emerging accelerators; supply chain exposure to memory and interconnect components; cyclical semiconductor demand; geopolitical and export controls that may influence access to foundry capacity and advanced manufacturing.
Financial Position
Fortress balance sheet with net cash position (~USD -4.95B), robust free cash flow (~USD 26.19B), USD 52.69B in liquidity, and a history of aggressive share repurchases (~USD 14.10B). The company’s high gross margins (~60.5%) and strong profitability support enhanced financial flexibility for R&D investments and shareholder returns.
SWOT Analysis
Strengths
Market leadership in AI-focused GPUs and data center accelerators
exceptionally high gross margin (≈60.5%) and strong operating leverage
robust free cash flow generation (USD 26.19B) and net cash position
deep CUDA software ecosystem and AI software monetization potential (NVIDIA AI Enterprise)
significant share repurchase activity signaling confidence in long-term growth trajectory
Weaknesses
High dependence on AI/data center demand cycles and hyperscale capex
Exposure to supply chain dynamics for memory and interconnects
Intensity of R&D investment required to sustain technology leadership
Valuation sensitivity to AI cycle expectations and growth announcements
Opportunities
Continued AI compute demand growth across enterprise, cloud, and HPC
Expansion of software-based monetization and subscriptions (NVIDIA AI Enterprise)
New product generations and interconnect innovations to sustain ASPs and margin
Expansion into automotive, robotics, and Omniverse-based enterprise design workflows
Global data center investments and AI training infrastructure expansion
Threats
Intense competitive pressure from AMD, Intel, and emerging accelerators
Potential cyclicality in AI adoption and data center spending
Supply chain risks for high-end memory, interconnects, and semiconductor equipment
Geopolitical and export-control regimes affecting access to advanced manufacturing capabilities