Shares of chipmaker Nvidia (NVDA) rose in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2026. Earnings per share came in at $0.81, which beat analysts’ consensus estimate of $0.74 per share. Interestingly, Nvidia has only missed expectations once since November 2020.
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In addition, sales increased by 69.2% year-over-year, with revenue hitting $44.06 billion. This beat analysts’ expectations of $43.3 billion and was mainly driven by a 73% jump in Data Center revenue, which came in at $39.1 billion. Nvidia’s operational momentum appears to show no signs of slowing down, as demonstrated by the image below from Main Street Data.
Outlook for 2025
Looking forward, management has provided the following guidance for Q2 2026:
- Revenue of $45 billion (+/- 2%) versus analysts’ estimates of $45.66 billion
- Non-GAAP gross margin of 72% (+/- 0.5%)
- Non-GAAP operating expenses of $4 billion
Interestingly, it seems like investors are remaining positive on NVDA stock even though guidance was slightly lower than expected. This is because the guidance includes a loss of approximately $8 billion in H20-related revenue from export controls to China. As a result, this suggests that demand for its products remains strong even with regulatory headwinds.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 32 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $164.21 per share implies 20.7% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
