Nvidia Q1 Revenue Soars, Faces Export Headwinds

Nvidia reported strong first-quarter results for fiscal 2026, with revenue up 69% year-over-year to $44.1 billion and adjusted earnings per share (EPS) of $0.96, both surpassing analyst expectations. The data center segment drove growth, posting a 73% revenue increase to $39.1 billion. Nvidia incurred a $4.5 billion charge due to new U.S. export restrictions on H20 chips to China, resulting in an $8 billion downward revision to projected Q2 revenue, now guided at $45 billion, below consensus estimates. CEO Jensen Huang cited continued global demand for AI infrastructure and ongoing production of Blackwell AI supercomputers. Nvidia's stock rose in after-hours trading, reflecting investor confidence in its AI leadership despite trade headwinds. The company maintains robust financial health, with strong liquidity and plans to sustain high gross margins throughout the year.