Nvidia is gearing itself to announce its financial results for the first quarter of the fiscal year 2026 on May 28, 2025. This earnings report is expected to be very patient with how it will mold the investor’s psyche toward the company in the future. Many in the industry believe it could help dissipate the fears existing now and re-establish a belief in Nvidia’s rightful place at the industry’s table leader in artificial intelligence (AI). Among the most optimistic people, it seems, is analyst C.J. Muse with Cantor Fitzgerald, who called it a positive clearing event, meaning it might wash away some clouds and lift investor spirits considerably.
This particular report is very crucial in view of the fact that the tech world is watching the ways of major companies dealing with global challenges such as chip export restrictions and increased competition in the AI space. Investors are looking out for signs of solid future growth while the company makes profit from its current operations and adjusting to changing market conditions.
Reflecting on Q1 FY25: A Benchmark for Success
For Q1 FY25, Nvidia posted record revenue of $26.0 billion, up 18% from the prior quarter, and an exceptional 262% increase compared to the same period of the previous year. The data center segment was a significant contributor with $22.6 billion in revenue, an increase of 23% quarter-over-quarter and 427% year-on-year. GAAP earnings per diluted share were $5.98, an increase of 21% from the last quarter and a staggering 629% from the previous year.
This was due to strong demand for artificial intelligence training and inference workloads utilizing Nvidia’s Hopper GPU computing platform. Strategic investments in AI infrastructure as well as collaboration with major cloud suppliers have fortified the company’s foothold as the leader in the AI revolution.
Nvidia Financial Snapshot & Analyst Forecasts
| Metric | Q1 FY25 (Actual) | Q1 FY26 (Expected) | Future Projections |
| Revenue | $26.0 billion | $43.26 billion | ~$46 billion (July quarter forecast) |
| Earnings Per Share (GAAP) | $5.98 | $0.88 | — |
| Data Center Revenue | $22.6 billion | — | ~$200 billion (FY26 forecast) |
| YoY Revenue Growth | +262% | +66% | — |
| Sequential Revenue Growth | +18% | — | — |
| YoY EPS Growth | +629% | +44% | — |
| H20 Chip Restrictions Impact | — | -$5.5 billion | -$15 billion (affecting July quarter) |
| GB300 Shipments | — | — | 25,000 units expected to ship in 2025 |
| Gross Margin (Second Half Estimate) | — | — | Mid-70% |
| Valuation (P/E Multiple) | — | 26.8x (2025 est.) | 19.9x (2026 est.) |
| Analyst Price Target Range | — | — | $100.00 – $235.92 |
| Average Analyst Target Price | — | — | $163.81 (24.29% upside from $131.80) |
Anticipations for Q1 FY26: Navigating Challenges and Opportunities
For Q1 FY26, analysts project earnings of $0.88 per share on revenue of $43.26 billion, indicating a 44% and 66% year-over-year growth, respectively. This forecast accounts for a $5.5 billion charge related to unsold inventory in China due to export restrictions. Despite these challenges, strong demand for Blackwell chips and AI technologies is expected to drive growth.
Analyst C.J. Muse forecasts July-quarter revenue at approximately $46 billion, slightly below the $46.3 billion Wall Street consensus, considering a $15 billion impact from H20 chip restrictions and robust early demand for Blackwell chips. He anticipates a significant increase in GB300 shipments starting in Q4, with around 25,000 units shipping in 2025, and projects data center revenue to climb toward $200 billion next year, up from a $175 billion estimate.
Muse also expects management to maintain a positive tone on AI spending, estimate second-half gross margins in the mid-70s, and highlight emerging areas such as “AI factories” and Physical AI. On valuation, Nvidia trades at 26.8 times projected 2025 earnings and 19.9 times 2026 estimates, suggesting room for upside as profit growth accelerates.
Market Sentiment and Investment Considerations
Nvidia has price targets from 51 analysts, where the average one-year target price for Nvidia stands at $163.81, with an estimated high of $235.92 and a low of $100.00. This average target implies a potential upside of +24.29% from the current price of $131.80.
Analysts remained bullish about the long-term possibility of Nvidia despite headwinds from China. With investment in Physical AI and the establishment of AI factories, the company’s strategic initiatives afford it the capacity to leverage the surging global demand for AI solutions across industries.
A Defining Moment for Nvidia and AI Investment
Nvidia’s earnings report will mean more than some financial update; it signifies a key assessment of the company’s strength against all geopolitical odds and its capability to lead in the revolution of Artificial Intelligence. Investors and industry observers will be watching closely on how Nvidia performs against these dynamics and sets itself as a company geared for perennial growth in technological innovations.
As the company continues to innovate and bolster its capabilities in artificial intelligence, the earnings report may very well turn out to be a time when Nvidia seals its future as a foundation in the AI-driven future.
Tech Writer