NVIDIA Corp (NVDA) 10-K 2026: AI Summary

Summary

Full summary

The Print

NVIDIA's fiscal 2026 revenue rose 65% to $215.9B with net income of $120.1B and diluted EPS of $4.90, as gross margin declined to 71.1% from 75.0%.

Revenue increased 65% to $215.9B from $130.5B, and net income increased 65% to $120.1B from $72.9B. Gross margin declined 3.9 pts to 71.1% from 75.0%, which management attributed to a business model transition from offering Hopper HGX systems to Blackwell full-scale datacenter solutions and a $4.5B charge associated with H20 excess inventory and purchase obligations in the first quarter of fiscal year 2026.

Revenue increased 65% to $215.9B from $130.5B, and net income increased 65% to $120.1B from $72.9B.
Diluted EPS rose 67% to $4.90 from $2.94, with the diluted share count declining to 24,514 million from 24,804 million.
Gross margin declined 3.9 pts to 71.1%, which management attributed to a business model transition from Hopper HGX systems to Blackwell full-scale datacenter solutions and a $4.5B H20 charge.
Operating cash flow rose to $102.7B from $64.1B, while investing cash outflow increased to $52.2B from $20.4B.

Results That Matter

Revenue
Current period
$215.9B
Prior period
$130.5B
Change
+65.5%
Revenue increased 65% year over year, which management attributed to data center compute and networking platforms for accelerated computing and AI solutions.
Gross margin
Current period
71.1%
Prior period
75.0%
Change
−3.9 ppts
Gross margin declined 3.9 pts, which management attributed to a business model transition from Hopper HGX systems to Blackwell full-scale datacenter solutions and a $4.5B H20 charge.
Operating income
Current period
$130.4B
Prior period
$81.5B
Change
+60.1%
Operating income increased 60% year over year.
Net income
Current period
$120.1B
Prior period
$72.9B
Change
+64.7%
Net income increased 65% year over year.
Net income per diluted share
Current period
$4.9
Prior period
$2.9
Change
—
Diluted EPS increased 67% year over year, with the diluted weighted average share count declining to 24,514 million from 24,804 million.

Financial highlights: current period, prior period, change, and investor takeaway per metric
Metric	Current Period	Prior Period	Change	Investor Takeaway
Revenue	$215.9B	$130.5B	+65.5%	Revenue increased 65% year over year, which management attributed to data center compute and networking platforms for accelerated computing and AI solutions.
Gross margin	71.1%	75.0%	−3.9 ppts	Gross margin declined 3.9 pts, which management attributed to a business model transition from Hopper HGX systems to Blackwell full-scale datacenter solutions and a $4.5B H20 charge.
Operating income	$130.4B	$81.5B	+60.1%	Operating income increased 60% year over year.
Net income	$120.1B	$72.9B	+64.7%	Net income increased 65% year over year.
Net income per diluted share	$4.9	$2.9	—	Diluted EPS increased 67% year over year, with the diluted weighted average share count declining to 24,514 million from 24,804 million.

Earnings Quality & Cash Conversion

Operating income of $130.4B includes a $4.5B charge associated with H20 excess inventory and purchase obligations in the first quarter of fiscal year 2026. Total other income, net of $11.1B includes $9.0B of other income, net, which management attributed primarily to unrealized gains in non-marketable and publicly-held equity securities, including gains from the investment in Intel's common stock. The filing does not define an adjusted or ex-item earnings total.

Red flag

Accounts receivable increased to $38.5B from $23.1B, and inventories increased to $21.4B from $10.1B, both growing faster than the 65% revenue increase.

Red flag

Three direct customers accounted for 25%, 18%, and 13% of the accounts receivable balance as of January 25, 2026.

Value Drivers & Capital Allocation

Capital expenditures $6.0B (prior $3.2B) (selected cash-flow amount, not necessarily total capital investment).

Return on equity was 76.3% (prior 91.9%) (period net income / period-end equity, not annualized); return on assets 58.1% (prior 65.3%) (period net income / period-end assets, not annualized).

Forward Signals

cautious

The filing does not provide revenue or EPS guidance. It states that supply constraints are expected to be a headwind to Gaming in the first quarter of fiscal year 2027 and beyond, and that capital expenditures are expected to increase in fiscal year 2027 relative to fiscal year 2026.

Known trends

The availability of data centers, energy, and capital to support the buildout of NVIDIA AI infrastructure by our customers and partners is crucial, and any shortage of these or other necessary resources could impact our future revenue and financial performance.
We expect supply constraints to be a headwind to Gaming in the first quarter of fiscal year 2027 and beyond.

Subsequent events

From January 26, 2026 through February 20, 2026, we repurchased 8 million shares for $1.5 billion pursuant to a pre-established trading plan.
In February 2026, the USG granted a license that would allow us to ship small amounts of H200 products to specific China-based customers.

“We expect to increase capital expenditures in fiscal year 2027 relative to fiscal year 2026 to support the future growth of our business.”
— NVIDIA Corporation

“We expect supply constraints to be a headwind to Gaming in the first quarter of fiscal 2027 and beyond.”
— NVIDIA Corporation

Risks

2 source-verified filing excerpts. 2 items withheld because the evidence could not be matched. Selected excerpts are not a complete risk inventory.

Filing excerpt 1

EvidenceIn April 2025, the USG informed us that a license is required for exports of our H20 product into the China market. As a result of these requirements, we incurred a $4.5 billion charge in the first quarter of fiscal year 2026 associated with H20 for excess inventory and purchase obligations, as the demand for H20 diminished.

Filing excerpt 2

EvidenceFor fiscal year 2026, sales to one direct customer represented 22% of total revenue and sales to another direct customer represented 14% of total revenue, all of which were primarily attributable to the Compute & Networking segment.

Balance Sheet & Liquidity

Leverage: Identified debt as of 2026-01-25: reported debt balance of unestablished maturity scope of $7.5B. The concept behind this balance does not establish which maturities it covers. Total debt, net debt and debt-to-equity are therefore not stated.

Liquidity: Cash, cash equivalents, and marketable securities totaled $62.6B as of January 25, 2026. The company increased its commercial paper program to $25.0B, with no commercial paper outstanding as of January 25, 2026.

Cash flow: Cash flow — operating $102.7B, investing $-52.2B, financing $-48.5B.

Working capital: Current assets $125.6B vs. current liabilities $32.2B (current ratio 3.91x). Prior reported balance sheet as of 2025-01-26: $80.1B vs. $18.0B (4.44x).

Maturities & covenants

Aggregate debt maturities as of January 25, 2026 include $1.0B due in one year, $2.75B due in one to five years, $1.25B due in five to ten years, and $3.5B due in greater than ten years.
As of January 25, 2026, we complied with the required covenants, which are non-financial in nature, under the outstanding notes.

Notable Footnotes

Item	Impact
Groq license agreement	Recorded $14.4B of goodwill and a $2.5B developed technology intangible asset, with total consideration of $13.0B paid at closing and $4B payable within one year.
Inventory provisions	Provisions for inventory and excess inventory purchase obligations totaled $7.2B, including $4.5B associated with H20, with a net unfavorable gross margin impact of 2.6%.
Income taxes	Income tax expense was $21.4B with an effective tax rate of 15.1%, and the company released $711M of valuation allowance on certain state deferred tax assets.

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AI-generated. Informational only, not investment advice. May be incomplete or contain errors. The authoritative source is always the original SEC filing.