Nvidia’s first quarter results were shaped by robust demand for AI infrastructure and significant momentum in its data center segment, though the market responded negatively following the announcement. Management attributed the strong revenue and margin performance to the rapid adoption of its Blackwell architecture across hyperscalers, AI-native cloud providers, and sovereign customers. CEO Jensen Huang emphasized that Nvidia’s platform supports “every frontier AI model,” with growth driven by both traditional hyperscale data centers and an expanding set of AI-native and enterprise workloads. Demand for Blackwell systems was described as “the fastest product ramp in our company’s history,” fueling growth in both computing and networking revenues.
Is now the time to buy NVDA? Find out in our full research report (it’s free for active Edge members).
Nvidia (NVDA) Q1 CY2026 Highlights:
- Revenue: $81.62 billion vs analyst estimates of $78.84 billion (85.2% year-on-year growth, 3.5% beat)
- Adjusted EPS: $1.87 vs analyst estimates of $1.77 (5.4% beat)
- Adjusted EBITDA: $54.78 billion vs analyst estimates of $52.84 billion (67.1% margin, 3.7% beat)
- Revenue Guidance for Q2 CY2026 is $91 billion at the midpoint, above analyst estimates of $86.11 billion
- Operating Margin: 65.6%, up from 49.1% in the same quarter last year
- Inventory Days Outstanding: 115, in line with the previous quarter
- Market Capitalization: $5.20 trillion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Nvidia’s Q1 Earnings Call
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Joseph Moore (Morgan Stanley): Asked about the rationale for new segment reporting and competitive positioning in the new segments. CEO Jensen Huang explained the segmentation’s focus on reflecting diverse AI workloads and deployment environments, and detailed how Nvidia’s integrated solutions cater to both hyperscale and fragmented enterprise markets.
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Ben Reitzes (Melius Research): Inquired whether Nvidia can outpace hyperscale CapEx growth. Huang responded that beyond hyperscalers, growth from AI-native clouds and enterprise AI factories will allow Nvidia to expand faster than aggregate hyperscale CapEx, particularly given the company’s broad platform reach.
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Christopher Muse (Cantor Fitzgerald): Questioned the impact of VeraRubin on Nvidia’s inference market share. Huang said Nvidia is “gaining share tremendously fast in inference” and expects nearly all major frontier model companies to adopt VeraRubin from launch, accelerating share gains.
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Timothy Arcuri (UBS): Asked about traction for LPX and custom solutions. Huang clarified that LPX is intended for niche, high-token-rate workloads and will remain a smaller segment, while broad platform solutions like Grace Blackwell and VeraRubin address the full AI lifecycle.
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Vivek Arya (Bank of America Securities): Sought clarity on the incremental versus cannibalistic role of CPUs like Vera. Huang said standalone Vera CPU sales are incremental, supporting “billions of agents” in the future, and do not cannibalize GPU demand as CPUs and GPUs serve distinct AI workflow functions.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will focus on (1) the pace of adoption and ramp of Vera and VeraRubin CPUs, (2) the evolution and impact of the new ACIE and Edge Computing segments, and (3) supply chain execution as Nvidia seeks to meet extraordinary global demand. We will also monitor developments around regulatory constraints for shipments to China and the ongoing diversification of Nvidia’s customer base.
Nvidia currently trades at $213.97, down from $223.47 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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