Nvidia's Q1 Fiscal 2026 Financial Results: Robust Revenue Growth Amid AI Demand and Stock Rally Despite Export Challenges

Nvidia reported its Q1 fiscal 2026 financial results with revenue reaching $44.1 billion, marking a 69% year-over-year increase. The net income for the quarter was USD 18,775 million, and the non-GAAP EPS stood at $0.81, impacted by a $4.5 billion charge. Despite facing challenges such as U.S. export controls on H200 GPUs for China and setbacks in China, Nvidia continues to excel, with major buyers like Amazon, Microsoft, Google, and Meta influencing market dynamics. Nvidia's data center revenue grew by 73% year-over-year to $39 billion, driven by AI inference and factory buildouts. Blackwell GPUs contributed nearly 70% of data center compute revenue. The company's outstanding inventory purchase and long-term supply and capacity obligations have surged to $29.8 billion, attributed to commitments related to the Blackwell Architecture. Microsoft processed over 100 trillion tokens in Q1, a 5x year-over-year increase. Nvidia's stock rallied by more than 4% in after-hours trading despite a disappointing forecast and export restrictions on its H20 product. Investors are eagerly anticipating Nvidia's earnings report, with the stock market edging higher.