NVIDIA Q4 2025 and Q1 2026 Earnings Highlights: AI Demand Drives Record Revenues Amid Export Challenges

Introduction

NVIDIA (NASDAQ: NVDA) reported record financial results for the fourth quarter and fiscal year 2025, followed by strong first quarter fiscal 2026 earnings, reflecting the explosive growth of artificial intelligence (AI) demand. Despite a significant $4.5 billion charge due to new U.S. export licensing requirements impacting its H20 AI chips destined for China, NVIDIA’s revenues and AI product sales surge with promising outlooks.

Fourth Quarter and Fiscal 2025 Results

• Revenue: $39.3 billion for Q4, up 12% from previous quarter and 78% year-over-year; full-year revenue hit $130.5 billion, up 114% from fiscal 2024.
• Net Income: $22.1 billion in Q4, up 14% quarter-over-quarter and 80% year-over-year; fiscal 2025 net income reached $72.9 billion, a 145% increase from prior year.
• Earnings Per Share (Diluted): $0.89 in Q4, up 14% sequentially and 82% year-over-year; $2.94 for fiscal 2025, up 147% year-over-year.
• Data Center Revenue: Record $35.6 billion in Q4, up 16% sequentially and 93% year-over-year; full year of $115.2 billion, up 142% year-over-year.
• Blackwell AI Supercomputer: Achieved billions in sales during its ramp, highlighting growing demand.

First Quarter Fiscal 2026 Results and Challenges

• Revenue: $44.1 billion, up 12% from Q4 and 69% year-over-year.
• H20 Export License Impact: $4.5 billion charge due to new U.S. license requirement; sales of H20 products were $4.6 billion in the quarter with $2.5 billion revenue held back due to restrictions.
• Gross Margins: GAAP gross margin of 60.5%; non-GAAP margin would have been 71.3% excluding H20 charge.
• Earnings Per Share (Diluted): $0.76 GAAP, $0.81 non-GAAP; adjusted EPS excluding charge would be $0.96.
• Strong demand for AI infrastructure: CEO Jensen Huang emphasized the surge in AI inference token generation and the scaling up of AI computing needs globally.

Market and Industry Context

NVIDIA commands a dominant position in AI data center GPUs, with its data center segment accounting for 91% of total sales in Q4 2025, sharply up from prior years. The company continues to innovate with the Blackwell architecture powering new GPUs and systems that push the boundaries of AI training and inference.

Despite tensions and export challenges impacting the China market, NVIDIA is expanding its AI ecosystem through collaborations with cloud providers AWS, Google, Microsoft, and others, while also investing in emerging AI applications across healthcare, automotive, robotics, and professional visualization.

Looking Ahead

NVIDIA forecasts Q1 fiscal 2026 revenue of approximately $43 billion, with ongoing investments in AI technology expected to sustain growth momentum. The company’s near-term outlook balances strong AI demand with caution around geopolitical and regulatory uncertainties.

Featured Image

Image courtesy: NVIDIA