NVIDIA Posts $44bn Revenue for Q1, Announces Cash Dividend
NVIDIA posted $44.1 billion revenue for the first quarter ended April 27, 2025, up 12% from the previous quarter and up 69% from a year ago, the company said in an official statement released.
The company announced plan to pay cash dividend to shareholders in July following its earnings beat. Wall Street was looking for an adjusted earnings per share of $0.93 on sales of $43.25 billion, while Nvidia printed $0.96 on sales of $44.06 billion for the quarter.
NVIDIA said on April 9, 2025, NVIDIA was informed by the U.S. government that a license is required for exports of its H20 products into the China market.
As a result of these new requirements, NVIDIA said the company incurred a $4.5 billion charge in the first quarter of fiscal 2026 associated with H20 excess inventory and purchase obligations as the demand for H20 diminished.
The company said sales of H20 products were $4.6 billion for the first quarter of fiscal 2026 prior to the new export licensing requirements. NVIDIA was unable to ship an additional $2.5 billion of H20 revenue in the first quarter.
For the quarter, GAAP and non-GAAP gross margins were 60.5% and 61.0%, respectively. Excluding the $4.5 billion charge, first quarter non-GAAP gross margin would have been 71.3%.
For the quarter, GAAP and non-GAAP earnings per diluted share were $0.76 and $0.81, respectively. Excluding the $4.5 billion charge and related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96.
“Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine’ designed for reasoning— is now in full-scale production across system makers and cloud service providers,” said Jensen Huang, founder and CEO of NVIDIA.
“Global demand for NVIDIA’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate.
Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the centre of this profound transformation.”
NVIDIA will pay its next quarterly cash dividend of $0.01 per share on July 3, 2025, to all shareholders of record on June 11, 2025. For the July quarter, management is now guiding for sales of $45 billion (+/- 2%) versus estimates for sales of $45.9 billion.
China was the buzzword this earnings call; it was actually all Jensen talked about in his prepared remarks. The worse-than-expected outlook has China to thank, at least on paper, management noted in the press release.
Outlook
Projecting for the second quarter, Nvidia expects revenue to be $45.0 billion, plus or minus 2%. This outlook reflects a loss in H20 revenue of approximately $8.0 billion due to the recent export control limitations.
GAAP and non-GAAP gross margins are expected to be 71.8% and 72.0%, respectively, plus or minus 50 basis points. The company is continuing to work toward achieving gross margins in the mid-70% range late this year.
GAAP and non-GAAP operating expenses are expected to be approximately $5.7 billion and $4.0 billion, respectively. Full year fiscal 2026 operating expense growth is expected to be in the mid-30% range.
GAAP and non-GAAP other income and expense are expected to be an income of approximately $450 million, excluding gains and losses from non-marketable and publicly-held equity securities. GAAP and non-GAAP tax rates are expected to be 16.5%, plus or minus 1%, excluding any discrete items. Unilever Nigeria Hits 52-Week High, Approaches New Target Price
