NVIDIA CORP 10-Q

Item 1. Financial Statements (Unaudited) NVIDIA Corporation and Subsidiaries Condensed Consolidated Statements of Income (In millions, except per share data) (Unaudited) Three Months Ended Apr 26, 2026 Apr 27, 2025 Revenue $ 81,615 $ 44,062 Cost of revenue 20,458 17,394 Gross profit 61,157 26,668 Operating expenses Research and development 6,321 3,989 Sales, general and administrative 1,300 1,041 Total operating expenses 7,621 5,030 Operating income 53,536 21,638 Interest income 540 515 Interest expense ( 102 ) ( 63 ) Other income (expense), net 15,929 ( 180 ) Total other income, net 16,367 272 Income before income tax 69,903 21,910 Income tax expense 11,582 3,135 Net income $ 58,321 $ 18,775 Net income per share: Basic $ 2.40 $ 0.77 Diluted $ 2.39 $ 0.76 Weighted average shares used in per share computation: Basic 24,286 24,441 Diluted 24,391 24,611 See accompanying Notes to Condensed Consolidated Financial Statements. 3 NVIDIA Corporation and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (In millions) (Unaudited) Three Months Ended Apr 26, 2026 Apr 27, 2025 Net income $ 58,321 $ 18,775 Other comprehensive income (loss), net of tax Available-for-sale securities: Net change in unrealized gain (loss) ( 78 ) 139 Cash flow hedges: Net change in unrealized gain 37 19 Other comprehensive income (loss), net of tax ( 41 ) 158 Total comprehensive income $ 58,280 $ 18,933 See accompanying Notes to Condensed Consolidated Financial Statements. 4 NVIDIA Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In millions) (Unaudited) Apr 26, 2026 Jan 25, 2026 Assets Current assets: Cash and cash equivalents $ 13,237 $ 10,605 Marketable debt securities 37,098 39,065 Marketable equity securities 30,237 12,886 Accounts receivable, net 40,710 38,466 Inventories 25,797 21,403 Prepaid expenses and other current assets 3,916 3,180 Total current assets 150,995 125,605 Property and equipment, net 12,403 10,383 Operating lease assets 4,258 2,867 Goodwill 20,894 20,832 Intangible assets, net 3,120 3,306 Deferred income tax assets 11,707 13,258 Non-marketable securities 43,364 22,251 Other assets 12,733 8,301 Total assets $ 259,474 $ 206,803 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 13,097 $ 9,812 Accrued and other current liabilities 29,787 21,352 Short-term debt 1,000 999 Total current liabilities 43,884 32,163 Long-term debt 7,470 7,469 Long-term operating lease liabilities 3,878 2,572 Other long-term liabilities 8,768 7,306 Total liabilities 64,000 49,510 Commitments and contingencies Shareholders’ equity: Preferred stock — — Common stock 24 24 Additional paid-in capital 10,275 10,118 Accumulated other comprehensive income 137 178 Retained earnings 185,038 146,973 Total shareholders’ equity 195,474 157,293 Total liabilities and shareholders’ equity $ 259,474 $ 206,803 See accompanying Notes to Condensed Consolidated Financial Statements. 5 NVIDIA Corporation and Subsidiaries Condensed Consolidated Statements of Shareholders ’ Equity (Unaudited) Common Stock Outstanding Additional Paid-in Capital Accumulated Other Comprehensive Income Retained Earnings Total Shareholders’ Equity Shares Amount (In millions, except per share data) Balances as of Jan 25, 2026 24,304 $ 24 $ 10,118 $ 178 $ 146,973 $ 157,293 Net income — — — — 58,321 58,321 Other comprehensive loss — — — ( 41 ) — ( 41 ) Issuance of common stock 37 — 515 — — 515 Tax withholding related to common stock ( 12 ) — ( 2,129 ) — — ( 2,129 ) Shares repurchased ( 108 ) — ( 157 ) — ( 20,013 ) ( 20,170 ) Cash dividends declared and paid ($ 0.01 per common share) — — — — ( 243 ) ( 243 ) Stock-based compensation — — 1,928 — — 1,928 Balances as of Apr 26, 2026 24,221 $ 24 $ 10,275 $ 137 $ 185,038 $ 195,474 Balances as of Jan 26, 2025 24,477 $ 24 $ 11,237 $ 28 $ 68,038 $ 79,327 Net income — — — — 18,775 18,775 Other comprehensive income — — — 158 — 158 Issuance of common stock 50 — 370 — — 370 Tax withholding related to common stock ( 13 ) — ( 1,532 ) — — ( 1,532 ) Shares repurchased ( 126 ) — ( 92 ) — ( 14,411 ) ( 14,503 ) Cash dividends declared and paid ($ 0.01 per common share) — — — — ( 244 ) ( 244 ) Fair value of partially vested equity awards assumed in connection with acquisitions — — 22 — — 22 Stock-based compensation — — 1,470 — — 1,470 Balances as of Apr 27, 2025 24,388 $ 24 $ 11,475 $ 186 $ 72,158 $ 83,843 See accompanying Notes to Condensed Consolidated Financial Statements. 6 NVIDIA Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (In millions) (Unaudited) Three Months Ended Apr 26, 2026 Apr 27, 2025 Cash flows from operating activities: Net income $ 58,321 $ 18,775 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation expense 1,928 1,474 Deferred income taxes 1,584 ( 2,177 ) Depreciation and amortization 997 611 (Gains) losses from equity securities, net ( 15,936 ) 175 Other ( 94 ) ( 98 ) Changes in operating assets and liabilities, net of acquisitions: Accounts receivable ( 2,243 ) 933 Inventories ( 4,420 ) ( 1,258 ) Prepaid expenses and other assets ( 983 ) 560 Accounts payable 2,210 941 Accrued and other current liabilities 7,763 7,128 Other long-term liabilities 1,217 350 Net cash provided by operating activities 50,344 27,414 Cash flows from investing activities: Proceeds from maturities of marketable debt securities 1,946 3,122 Proceeds from sales of non-marketable securities 26 — Proceeds from sales of marketable debt securities 25 467 Purchases of non-marketable securities ( 18,582 ) ( 649 ) Purchases of marketable debt and equity securities ( 8,000 ) ( 6,546 ) Purchases related to property and equipment and intangible assets ( 1,757 ) ( 1,227 ) Acquisitions, net of cash acquired ( 87 ) ( 383 ) Net cash used in investing activities ( 26,429 ) ( 5,216 ) Cash flows from financing activities: Proceeds related to employee stock plans 515 370 Payments related to repurchases of common stock ( 19,312 ) ( 14,095 ) Payments related to employee stock plan taxes ( 2,129 ) ( 1,532 ) Dividends paid ( 243 ) ( 244 ) Principal payments on property and equipment and intangible assets ( 33 ) ( 52 ) Other ( 81 ) — Net cash used in financing activities ( 21,283 ) ( 15,553 ) Change in cash and cash equivalents 2,632 6,645 Cash and cash equivalents at beginning of period 10,605 8,589 Cash and cash equivalents at end of period $ 13,237 $ 15,234 See accompanying Notes to Condensed Consolidated Financial Statements. 7 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1 - Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission, or SEC, Regulation S-X. The January 25, 2026 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 25, 2026, as filed with the SEC, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation of results of operations and financial position, have been included. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 25, 2026. Certain prior fiscal year balances have been reclassified to conform to the current period presentation. Significant Accounting Policies There have been no material changes to our significant accounting policies disclosed in Note 1 - Organization and Summary of Significant Accounting Policies, of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 25, 2026. Fiscal Year Fiscal year 2027 is a 53-week year and fiscal year 2026 was a 52-week year, both ending on the last Sunday in January. The first quarters of fiscal years 2027 and 2026 were both 13-week quarters. The fourth quarter of fiscal year 2027 will be a 14-week quarter. Principles of Consolidation Our condensed consolidated financial statements include the accounts of NVIDIA Corporation and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from our estimates. Recently Issued Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted In November 2024, the Financial Accounting Standards Board, or FASB, issued a new accounting standard requiring disclosures of certain additional expense information on an annual and interim basis, including, among other items, the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included within each income statement expense caption, as applicable. We will adopt this standard in the fiscal year 2028 annual report. We do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements other than additional disclosures. Note 2 - Stock-Based Compensation We recognize stock-based compensation expense from grants of restricted stock units, or RSUs, performance stock units, or PSUs, and market-based PSUs, and issuances under our employee stock purchase plan, or ESPP. 8 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Condensed Consolidated Statements of Income include stock-based compensation expense as follows: Three Months Ended Apr 26, 2026 Apr 27, 2025 (In millions) Cost of revenue $ 68 $ 64 Research and development 1,459 1,063 Sales, general and administrative 401 347 Total $ 1,928 $ 1,474 Equity Award Activity The following is a summary of our equity award transactions under our equity incentive plans: RSUs, PSUs and Market-based PSUs Outstanding Number of Shares Weighted Average Grant-Date Fair Value Per Share (In millions, except per share data) Balance as of Jan 25, 2026 189 $ 81.51 Granted 44 $ 181.73 Vested ( 31 ) $ 48.04 Canceled and forfeited ( 2 ) $ 95.82 Balance as of Apr 26, 2026 200 $ 108.92 As of April 26, 2026, aggregate unearned stock-based compensation expense was $ 20.8 billion, which is expected to be recognized over a weighted average period of 2.6 years for RSUs, PSUs, and market-based PSUs, and one year for ESPP. Note 3 - Net Income Per Share The following is the basic and diluted net income per share computations for the periods presented: Three Months Ended Apr 26, 2026 Apr 27, 2025 (In millions, except per share data) Numerator: Net income $ 58,321 $ 18,775 Denominator: Basic weighted average shares 24,286 24,441 Dilutive impact of outstanding equity awards 105 170 Diluted weighted average shares 24,391 24,611 Net income per share: Basic (1) $ 2.40 $ 0.77 Diluted (2) $ 2.39 $ 0.76 Anti-dilutive equity awards excluded from diluted net income per share 47 62 (1) Net income divided by basic weighted average shares. (2) Net income divided by diluted weighted average shares. Diluted net income per share was computed using the weighted average number of common and potentially dilutive shares outstanding during the period, using the treasury stock method. 9 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Note 4 - Amortizable Intangible Assets and Goodwill The components of our amortizable intangible assets are as follows: Apr 26, 2026 Jan 25, 2026 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Acquisition-related intangible assets $ 5,658 $ ( 2,759 ) $ 2,899 $ 5,656 $ ( 2,580 ) $ 3,076 Patents and licensed technology 525 ( 304 ) 221 528 ( 298 ) 230 Total intangible assets $ 6,183 $ ( 3,063 ) $ 3,120 $ 6,184 $ ( 2,878 ) $ 3,306 Amortization expense associated with intangible assets was $ 232 million and $ 159 million for the first quarter of fiscal years 2027 and 2026, respectively. The following table outlines the estimated future amortization expense related to the net carrying amount of intangible assets as of April 26, 2026: Future Amortization Expense (In millions) Fiscal Year: 2027 (excluding the first quarter of fiscal year 2027) $ 689 2028 754 2029 610 2030 516 2031 468 2032 and thereafter 83 Total $ 3,120 In the first quarter of fiscal year 2027, goodwill increased by $ 62 million from acquisitions and was allocated to our Compute & Networking reporting unit. 10 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Note 5 - Cash Equivalents and Marketable Securities Cash equivalents and marketable securities including debt and equity securities are measured at fair value using quoted prices in active markets for identical assets (Level 1) or for similar assets or use of other observable inputs (Level 2). The following is a summary of cash equivalents and marketable securities: Apr 26, 2026 Pricing Category Cost or Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Reported as Cash Equivalents Marketable Debt Securities Marketable Equity Securities Other Assets (In millions) Debt securities issued by the U.S. Treasury Level 2 $ 21,883 $ 43 $ ( 8 ) $ 21,918 $ 470 $ 21,448 $ — $ — Corporate debt securities Level 2 15,092 48 ( 8 ) 15,132 1,533 13,599 — — Debt securities issued by U.S. government agencies Level 2 2,009 2 ( 1 ) 2,010 — 2,010 — — Certificates of deposit Level 2 132 — — 132 132 — — — Foreign government bonds Level 2 40 1 — 41 — 41 — — Money market funds Level 1 10,212 — — 10,212 10,212 — — — Publicly-held equity securities (1) (2) Level 1 29,887 — — 21,023 8,864 Publicly-held equity securities (1) (3) Level 2 9,214 — — 9,214 — Total $ 49,368 $ 94 $ ( 17 ) $ 88,546 $ 12,347 $ 37,098 $ 30,237 $ 8,864 (1) The balance as of April 26, 2026 included $ 27.4 billion of investments, which are subject to short-term lock-up restrictions on the ability to sell. (2) The long-term portion of publicly-held equity securities, which are subject to lock-up restrictions through December 2027 of $ 8.9 billion as of April 26, 2026, was included in Other assets. (3) The publicly-held equity securities classified in Level 2 include investments in warrants and preferred stock convertible to common stock in public companies. Publicly-held equity securities are subject to market price volatility. Net unrealized gains on investments in publicly-held equity securities held at period end were $ 13.4 billion for the first quarter of fiscal year 2027. Net unrealized losses on investments in publicly-held equity securities held at period end were $ 222 million for the first quarter of fiscal year 2026. Unrealized gains and losses are recognized in Other income (expense), net, in the Condensed Consolidated Statements of Income. 11 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Jan 25, 2026 Pricing Category Cost or Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Reported as Cash Equivalents Marketable Debt Securities Marketable Equity Securities Other Assets (In millions) Debt securities issued by the U.S. Treasury Level 2 $ 21,635 $ 77 $ ( 3 ) $ 21,709 $ — $ 21,709 $ — $ — Corporate debt securities Level 2 15,410 92 ( 3 ) 15,499 345 15,154 — — Debt securities issued by U.S. government agencies Level 2 2,157 4 — 2,161 — 2,161 — — Certificates of deposit Level 2 110 — — 110 110 — — — Foreign government bonds Level 2 40 1 — 41 — 41 — — Money market funds Level 1 7,830 — — 7,830 7,830 — — — Publicly-held equity securities (1) (2) Level 1 17,726 — — 12,886 4,840 Total $ 47,182 $ 174 $ ( 6 ) $ 65,076 $ 8,285 $ 39,065 $ 12,886 $ 4,840 (1) The balance as of January 25, 2026 included $ 10.5 billion of investments that are subject to short-term lock-up restrictions on the ability to sell. (2) The long-term portion of publicly-held equity securities, which are subject to lock-up restrictions through December 2027 of $ 4.8 billion as of January 25, 2026, was included in Other assets. The following table provides the breakdown of unrealized losses, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position: Apr 26, 2026 Jan 25, 2026 Less than 12 months Less than 12 months Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss (In millions) Debt securities issued by the U.S. Treasury $ 12,238 $ ( 8 ) $ 10,666 $ ( 3 ) Corporate debt securities 2,658 ( 8 ) 1,332 ( 3 ) Debt securities issued by U.S. government agencies 1,291 ( 1 ) 1,134 — Total $ 16,187 $ ( 17 ) $ 13,132 $ ( 6 ) Gross unrealized losses are related to fixed income securities, driven primarily by changes in interest rates. The estimated fair values of debt securities included in cash equivalents and marketable debt securities are shown below by contractual maturity. Apr 26, 2026 (In millions) Less than one year $ 24,307 Due in 1 - 5 years 14,926 Total $ 39,233 12 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Note 6 - Non-marketable Securities Non-marketable Equity Securities Our non-marketable equity securities are primarily in privately-held companies carried at cost less impairment, and adjusted for observable price changes. We value investments using observable comparable transactions and other inputs including volatility, expected time to liquidity, the risk-free rate, and security-specific rights and obligations. Adjustments to the carrying value of privately-held securities: Three Months Ended Apr 26, 2026 Apr 27, 2025 (In millions) Balance at beginning of period $ 22,251 $ 3,387 Adjustments related to non-marketable equity securities: Net additions 17,899 649 Unrealized gains (1) 2,603 63 Reclassification (2) ( 389 ) ( 843 ) Impairments and unrealized losses ( 28 ) ( 16 ) Balance at end of period $ 42,336 $ 3,240 (1) Unrealized gains are recognized in Other income (expense), net, in the Condensed Consolidated Statements of Income. (2) Includes primarily reclassifications to marketable securities following public market trading. Non-marketable equity securities had cumulative gross unrealized gains of $ 5.3 billion and $ 396 million, and cumulative gross unrealized losses and impairments of $ 199 million and $ 110 million as of April 26, 2026 and April 27, 2025, respectively. Equity Method Investments We have $ 1.0 billion of investments in infrastructure funds accounted for using the equity method as of April 26, 2026. Our maximum loss exposure under these investments, including invested and future committed amounts, was $ 2.3 billion as of April 26, 2026. Investment Commitments Total Investment commitments were $ 27 billion as of April 26, 2026, subject to certain contingencies, which we expect will be made through the remainder of fiscal year 2027. Note 7 - Balance Sheet Components We refer to customers who purchase products directly from NVIDIA as direct customers, such as add-in board manufacturers, or AIBs, distributors, original design manufacturers, or ODMs, original equipment manufacturers, or OEMs, cloud service providers, or CSPs, AI model makers, and system integrators. Certain direct customers may use either internal resources or third-party system integrators to complete their build. Three direct customers accounted for 30 %, 18 %, and 16 % of our accounts receivable balance as of April 26, 2026. Three direct customers accounted for 25 %, 18 %, and 13 % of our accounts receivable balance as of January 25, 2026. Certain balance sheet components were as follows: Apr 26, 2026 Jan 25, 2026 Inventories: (In millions) Raw materials $ 6,647 $ 3,807 Work in process 9,949 8,822 Finished goods 9,201 8,774 Total inventories (1) $ 25,797 $ 21,403 (1) We recorded inventory provisions of $ 0.8 billion and $ 2.3 billion for the first quarter of fiscal years 2027 and 2026, respectively, in Cost of revenue. 13 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Property and Equipment: Property, equipment and intangible assets acquired but not paid for the first quarter of fiscal years 2027 and 2026 were $ 1.1 billion and $ 408 million, respectively. Apr 26, 2026 Jan 25, 2026 Accrued and Other Current Liabilities: (In millions) Taxes payable $ 10,638 $ 2,669 Customer program accruals 4,182 5,318 Accrued purchase consideration (1) 3,957 3,921 Excess inventory purchase obligations (2) 3,121 2,739 Product warranty 2,948 2,807 Deferred revenue (3) 1,714 1,379 Accrued payroll and related expenses 1,033 1,146 Other 2,194 1,373 Total accrued and other current liabilities $ 29,787 $ 21,352 (1) Related to the Groq, Inc. non-exclusive license agreement. (2) We recorded $ 0.3 billion and $ 3.0 billion for the first quarter of fiscal years 2027 and 2026, respectively, in Cost of revenue. (3) Includes customer advances and unearned revenue related to hardware and software support, cloud services, and license and development arrangements. The balance as of April 26, 2026 and January 25, 2026 included $ 297 million and $ 160 million of customer advances, respectively. Apr 26, 2026 Jan 25, 2026 Other Long-Term Liabilities: (In millions) Income tax payable (1) $ 4,830 $ 3,958 Deferred income tax 1,798 1,774 Deferred revenue (2) 1,403 1,193 Other 737 381 Total other long-term liabilities $ 8,768 $ 7,306 (1) Primarily comprised of unrecognized tax benefits and related interest and penalties. (2) Includes unearned revenue related to hardware and software support and cloud services. Deferred Revenue The following table shows the changes in short- and long-term deferred revenue during the first quarter of fiscal years 2027 and 2026: Three Months Ended Apr 26, 2026 Apr 27, 2025 (In millions) Balance at beginning of period $ 2,572 $ 1,813 Deferred revenue additions (1) 2,530 6,493 Revenue recognized (2) ( 1,985 ) ( 6,228 ) Balance at end of period $ 3,117 $ 2,078 (1) Includes $ 1.7 billion and $ 6.2 billion of customer advances for the first quarter of fiscal years 2027 and 2026, respectively. (2) Includes $ 1.6 billion and $ 6.0 billion related to customer advances for the first quarter of fiscal years 2027 and 2026, respectively. We recognized revenue of $ 451 million and $ 265 million in the first quarter of fiscal years 2027 and 2026, respectively, that was included in the prior year-end deferred revenue balance. As of April 26, 2026, revenue related to remaining performance obligations from contracts greater than one year in length was $ 2.6 billion, which includes $ 2.3 billion from deferred revenue and $ 304 million, which has not yet been billed or 14 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) recognized as revenue. Approximately 40 % of revenue from contracts greater than one year in length will be recognized over the next twelve months . Note 8 - Derivative Financial Instruments Foreign Currency Derivatives We primarily utilize foreign currency forward contracts to mitigate the impact of foreign currency exchange rate movements on our operating expenses. These foreign currency forward contracts for operating expenses are designated as accounting hedges. Gains or losses on the contracts are recorded in Accumulated other comprehensive income or loss and reclassified to Operating expenses when the related operating expenses are recognized in earnings. During the first quarter of fiscal years 2027 and 2026, the impact of foreign currency forward contracts designated as accounting hedges on other comprehensive income or loss was not significant and all such instruments were determined to be highly effective. We also entered into foreign currency forward contracts to mitigate the impact of foreign currency movements on monetary assets and liabilities. For our foreign currency contracts for assets and liabilities, the change in fair value of these non-designated contracts was recorded in Other income or expense and offsets the change in fair value of the hedged foreign currency denominated monetary assets and liabilities, which was also recorded in Other income (expense), net. The table below presents the notional value of our foreign currency contracts outstanding: Apr 26, 2026 Jan 25, 2026 (In millions) Designated as accounting hedges $ 2,114 $ 1,765 Not designated as accounting hedges $ 1,850 $ 2,332 The fair values of our foreign currency contracts were not significant as of April 26, 2026 and January 25, 2026. As of April 26, 2026, all foreign currency contracts mature within 18 months. The expected realized gains and losses deferred into Accumulated other comprehensive income or loss related to foreign currency forward contracts within the next twelve months were not significant. Facility Lease Guarantee In fiscal year 2026, we entered into agreements to guarantee partners’ facility lease obligations in the event of their default in exchange for warrants. The maximum gross exposure under all agreements is $ 3.5 billion, which is reduced as the partners make payments to the lessors over terms ranging from 5 to 7 years. The partners have placed $ 712 million in escrow to mitigate our potential exposure. The guarantees, classified as credit derivatives with changes in fair value recognized in Other income (expense), net, were not material. 15 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Note 9 - Debt Expected Remaining Term (years) Effective Interest Rate Apr 26, 2026 Jan 25, 2026 (In millions) 3.20 % Notes Due 2026 0.4 3.31 % $ 1,000 $ 1,000 1.55 % Notes Due 2028 2.1 1.64 % 1,250 1,250 2.85 % Notes Due 2030 3.9 2.93 % 1,500 1,500 2.00 % Notes Due 2031 5.1 2.09 % 1,250 1,250 3.50 % Notes Due 2040 13.9 3.54 % 1,000 1,000 3.50 % Notes Due 2050 23.9 3.54 % 2,000 2,000 3.70 % Notes Due 2060 34.0 3.73 % 500 500 Unamortized debt discount and issuance costs ( 30 ) ( 32 ) Net carrying amount $ 8,470 $ 8,468 Less short-term portion ( 1,000 ) ( 999 ) Total long-term portion $ 7,470 $ 7,469 As of April 26, 2026 and January 25, 2026, the estimated fair value of debt was $ 7.4 billion and $ 7.5 billion, respectively. The estimated fair values are based on Level 2 inputs. Our notes are unsecured senior obligations. Existing and future liabilities of our subsidiaries will be effectively senior to the notes. Our notes pay interest semi-annually. We may redeem each of our notes prior to maturity, subject to a make-whole premium. The maturity dates of the notes are stated by calendar year. As of April 26, 2026, we complied with the required covenants, which are non-financial in nature, under the outstanding notes. As of April 26, 2026, our commercial paper program had a capacity of $ 25.0 billion, with no amounts outstanding. Note 10 - Commitments and Contingencies Commitments Manufacturing, supply, and capacity commitments reflect data center-scale production and longer future ordering horizons across current and future product architectures. We enter into agreements with our supply vendors that allow them to procure inventory based upon our defined criteria, and in certain instances, these agreements are cancellable, able to be rescheduled, or adjustable for our business needs prior to placing firm orders. Changes to these agreements may result in additional costs. As of April 26, 2026, these commitments were $ 119 billion for which $ 95 billion will be paid in the remainder of fiscal year 2027 and the remaining balance will be paid in fiscal years 2028 through 2031. Multi-year cloud service agreement commitments as of April 26, 2026, were $ 30 billion for which $ 6 billion, $ 7 billion, $ 7 billion, $ 5 billion, $ 3 billion, and $ 2 billion will be paid in the remainder of fiscal year 2027, each fiscal year from 2028 through 2031, and fiscal year 2032 and thereafter, respectively. Cloud service capacity may be reduced or terminated. Cloud service agreements will be primarily used to support our research and development efforts. Other vendor commitments were $ 6 billion as of April 26, 2026, of which the majority will be paid through fiscal year 2027. 16 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Accrual for Product Warranty Liabilities The estimated amount of product warranty liabilities was $ 2.9 billion and $ 2.8 billion as of April 26, 2026 and January 25, 2026, respectively. The estimated product returns and product warranty activity consisted of the following: Three Months Ended Apr 26, 2026 Apr 27, 2025 (In millions) Balance at beginning of period $ 2,807 $ 1,290 Additions 330 870 Utilization ( 189 ) ( 80 ) Balance at end of period $ 2,948 $ 2,080 For the first quarter of fiscal years 2027 and 2026, the additions in product warranty liabilities primarily related to our Compute & Networking segment. We have provided indemnities for matters such as tax, product, and employee liabilities. We have included intellectual property indemnification provisions in our technology-related agreements with third parties. Maximum potential future payments cannot be estimated because many of these agreements do not have a maximum stated liability. We have not recorded any liability in our Condensed Consolidated Financial Statements for such indemnifications. Litigation Securities Class Action and Derivative Lawsuits The plaintiffs in the putative securities class action lawsuit, captioned 4:18-cv-07669-HSG, initially filed on December 21, 2018 in the United States District Court for the Northern District of California, and titled In Re NVIDIA Corporation Securities Litigation, filed an amended complaint on May 13, 2020. The amended complaint asserted that NVIDIA and certain NVIDIA executives violated Section 10(b) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and SEC Rule 10b-5, by making materially false or misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand between May 10, 2017 and November 14, 2018. Plaintiffs also alleged that the NVIDIA executives who they named as defendants violated Section 20(a) of the Exchange Act. Plaintiffs sought class certification, an award of unspecified compensatory damages, an award of reasonable costs and expenses, including attorneys’ fees and expert fees, and further relief as the Court may deem just and proper. On March 2, 2021, the district court granted NVIDIA’s motion to dismiss the complaint without leave to amend, entered judgment in favor of NVIDIA and closed the case. On March 30, 2021, plaintiffs filed an appeal from judgment in the United States Court of Appeals for the Ninth Circuit, case number 21-15604. On August 25, 2023, a majority of a three-judge Ninth Circuit panel affirmed in part and reversed in part the district court’s dismissal of the case, with a third judge dissenting on the basis that the district court did not err in dismissing the case. NVIDIA filed a petition for a writ of certiorari on March 4, 2024. On June 17, 2024, the Supreme Court of the United States granted NVIDIA’s petition for a writ of certiorari. After briefing and argument, the Supreme Court dismissed NVIDIA’s writ of certiorari as improvidently granted on December 11, 2024, and issued judgment on January 13, 2025. On February 20, 2025, the Ninth Circuit’s judgment, entered August 25, 2023 and corrected August 28, 2023, took effect, and the case was remanded to the district court for further proceedings. On March 25, 2026, the district court granted plaintiffs’ motion for class certification and certified a class of investors consisting of all persons or entities who purchased or otherwise acquired NVIDIA common stock between August 10, 2017, and November 15, 2018, inclusive, excluding certain persons and entities, such as NVIDIA’s officers and directors, and members of their immediate families, among others. On April 8, 2026, NVIDIA filed a petition with the Ninth Circuit for permission to appeal the district court’s order pursuant to Federal Rule of Civil Procedure 23(f). The putative derivative lawsuit pending in the United States District Court for the Northern District of California, captioned 4:19-cv-00341-HSG, initially filed January 18, 2019 and titled In re NVIDIA Corporation Consolidated Derivative Litigation, was stayed pending resolution of the plaintiffs’ appeal in the In Re NVIDIA Corporation Securities Litigation action. On February 22, 2022, the court administratively closed the case, but stated that it would reopen the case once the appeal in the In Re NVIDIA Corporation Securities Litigation action is resolved. The case has not yet been reopened by the court. The lawsuit asserts claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty, unjust enrichment, waste of corporate assets, and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs are seeking unspecified damages and other relief, including reforms and improvements to NVIDIA’s corporate governance and internal procedures. The putative derivative actions initially filed September 24, 2019 and pending in the United States District Court for the District of Delaware, Lipchitz v. Huang, et al. (Case No. 1:19-cv-01795-MN) and Nelson v. Huang, et. al. (Case No. 1:19- 17 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) cv-01798-MN), were stayed pending resolution of the plaintiffs’ appeal in the In Re NVIDIA Corporation Securities Litigation action. On March 7, 2025, after the Supreme Court issued its judgment dismissing the Company’s petition for writ of certiorari as improvidently granted in the In Re NVIDIA Securities Litigation action, the district court adopted the parties' stipulation to extend the stay until the final and complete resolution of the In Re NVIDIA Corporation Securities Litigation action. The lawsuits assert claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty, unjust enrichment, insider trading, misappropriation of information, corporate waste and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs seek unspecified damages and other relief, including disgorgement of profits from the sale of NVIDIA stock and unspecified corporate governance measures. Another putative derivative action was filed on October 30, 2023 in the Court of Chancery of the State of Delaware, captioned Horanic v. Huang, et al. (Case No. 2023-1096-KSJM). This lawsuit asserts claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty and insider trading based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs seek unspecified damages and other relief, including disgorgement of profits from the sale of NVIDIA stock and reform of unspecified corporate governance measures. On August 11, 2025, the court granted the parties’ stipulation to voluntarily dismiss with prejudice plaintiff City of Westland Police and Fire Retirement System. This derivative matter is stayed pending the final resolution of In Re NVIDIA Corporation Securities Litigation action. Accounting for Loss Contingencies As of April 26, 2026, there are no accrued contingent liabilities associated with the legal proceedings described above based on our belief that liabilities, while reasonably possible, are not probable. Further, any possible loss or range of loss in these matters cannot be reasonably estimated at this time. We are engaged in legal actions not described above arising in the ordinary course of business, as well as regulatory and government inquiries and investigations, and, while there can be no assurance of favorable outcomes, we believe that the ultimate outcome of these matters will not have a material adverse effect on our operating results, liquidity or financial position. These matters are subject to inherent uncertainties and if the ultimate outcome is unfavorable, there exists the possibility of a material adverse impact on our operating results, liquidity or financial position in the period the outcome becomes estimable and probable. Note 11 - Income Taxes Income tax expense was $ 11.6 billion and $ 3.1 billion for the first quarter of fiscal years 2027 and 2026, respectively. Income tax as a percentage of income before income tax was 16.6 % and 14.3 % for the first quarter of fiscal years 2027 and 2026, respectively. The effective tax rate increased primarily due to a lower percentage of tax benefits from stock-based compensation relative to the increase in income before income tax. Our effective tax rates for the first quarter of fiscal years 2027 and 2026 were lower than the U.S. federal statutory rate of 21% primarily due to tax benefits from foreign-derived deduction eligible income, income earned in jurisdictions that were subject to taxes at rates lower than the U.S. federal statutory tax rate, stock-based compensation, and the U.S. federal research tax credit. While we believe that we have adequately provided for all uncertain tax positions, or tax positions where we believe it is not more-likely-than-not that the position will be sustained upon review, amounts asserted by tax authorities could be greater or less than our accrued position. Accordingly, our provisions on federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved with the respective tax authorities. We are currently under examination by the Internal Revenue Service for our fiscal years 2023 and 2024. Note 12 - Shareholders’ Equity Capital Return Program We repurchased 108 million and 126 million shares of our common stock for $ 20.2 billion and $ 14.5 billion during the first quarter of fiscal years 2027 and 2026, respectively. As of April 26, 2026, we were authorized, subject to certain specifications, to repurchase up to $ 38.5 billion of our common stock. On May 18, 2026, our Board of Directors approved an additional $ 80.0 billion in share repurchase authorization, without expiration. 18 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) We paid cash dividends to our shareholders of $ 243 million and $ 244 million during the first quarter of fiscal years 2027 and 2026, respectively. On May 18, 2026, we increased our quarterly cash dividend from $ 0.01 per share to $ 0.25 per share to all shareholders of record on June 4, 2026. Our quarterly cash dividend will be paid on June 26, 2026. The payment of future cash dividends is subject to our Board of Directors' continuing determination that the declaration of dividends is in the best interests of our shareholders. Note 13 - Segment Information Our Chief Executive Officer is our chief operating decision maker, or CODM, and reviews financial information presented on an operating segment basis for purposes of making decisions and assessing financial performance. Our CODM assesses operating performance of each segment based on regularly provided segment revenue and segment operating income. Operating results by segment include costs or expenses directly attributable to each segment, and costs or expenses that are leveraged across our unified architecture and therefore allocated between our two segments. Our CODM reviews expenses on a consolidated basis, and expenses attributable to each segment are not regularly provided to our CODM. The Compute & Networking segment includes our Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions including software. The Graphics segment includes GeForce GPUs for gaming and PCs, and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Certain expenses are not allocated to either Compute & Networking or Graphics for purposes of making operating decisions or assessing financial performance. The expenses include stock-based compensation expense, corporate infrastructure and support costs, acquisition-related and other costs, and other non-recurring charges and benefits that our CODM deems to be enterprise in nature. Our CODM does not review any information regarding total assets on a reportable segment basis. There are no intersegment transactions. The accounting policies for segment reporting are the same as for our consolidated financial statements. The table below presents details of our reportable segments. Compute & Networking Graphics Total (In millions) Three Months Ended Apr 26, 2026 Revenue $ 74,550 $ 7,065 $ 81,615 Other segment items (1) 21,215 4,124 25,339 Operating income $ 53,335 $ 2,941 $ 56,276 Three Months Ended Apr 27, 2025 Revenue $ 39,589 $ 4,473 $ 44,062 Other segment items (1) 17,535 2,833 20,368 Operating income $ 22,054 $ 1,640 $ 23,694 (1) Other segment items primarily include product costs and inventory provisions, compensation and benefits excluding stock-based compensation expense, computing infrastructure expenses, and engineering development costs. Depreciation and amortization expense attributable to our Compute & Networking segment was $ 526 million and $ 296 million for the first quarter of fiscal years 2027 and 2026, respectively. Depreciation and amortization expense attributable to our Graphics segment was $ 194 million and $ 109 million for the first quarter of fiscal years 2027 and 2026, respectively. Acquisition-related intangible amortization expense is not allocated to either Compute & Networking or Graphics for purposes of making operating decisions or assessing financial performance. 19 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Reconciliation of segment operating income to consolidated income before income tax for the first quarter of fiscal years 2027 and 2026 was as follows: Three Months Ended Apr 26, 2026 Apr 27, 2025 (In millions) Segment operating income $ 56,276 $ 23,694 Stock-based compensation expense ( 1,928 ) ( 1,474 ) Unallocated operating expenses ( 565 ) ( 419 ) Acquisition-related and other costs ( 247 ) ( 163 ) Interest income 540 515 Interest expense ( 102 ) ( 63 ) Other income (expense), net 15,929 ( 180 ) Consolidated income before income tax $ 69,903 $ 21,910 Revenue by geographic area is based upon the location of the customers’ headquarters. The end customer and shipping location may be different from our customers’ headquarters location. Three Months Ended Apr 26, 2026 Apr 27, 2025 (In millions) Geographic Revenue based upon Customer Headquarters Location: United States $ 63,769 $ 25,685 Taiwan 12,006 7,648 China (including Hong Kong) 4,550 9,659 Other 1,290 1,070 Total revenue $ 81,615 $ 44,062 Revenue from sales to customers headquartered outside of the United States accounted for 22 % of total revenue for the first quarter of fiscal year 2027 and 42 % of total revenue for the first quarter of fiscal year 2026 . We refer to customers who purchase products directly from NVIDIA as direct customers, such as AIBs, distributors, ODMs, OEMs, CSPs, AI model makers, and system integrators. Certain direct customers may use either internal resources or third-party system integrators to complete their build. We refer to indirect customers as those who purchase products through our direct customers; indirect customers include CSPs, AI Clouds, AI model makers, enterprises, and public sector entities. Our revenue is concentrated among a limited number of direct and indirect customers and this trend may continue. For the first quarter of fiscal year 2027, three direct customers represented 21 %, 17 %, and 16 % of total revenue, all of which was primarily attributable to the Compute & Networking segment. For the first quarter of fiscal year 2026, sales to two direct customers represented 16 % and 14 % of total revenue, which were attributable to the Compute & Networking segment. 20 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) In the first quarter of fiscal year 2027, we changed our presentation of revenue by market platform, and the comparable period has been recast as follows: Three Months Ended Apr 26, 2026 Apr 27, 2025 (In millions) Revenue by Market Platform Data Center $ 75,246 $ 39,112 Hyperscale 37,869 17,599 AI Clouds, Industrial, & Enterprise 37,377 21,513 Edge Computing 6,369 4,950 Total revenue $ 81,615 $ 44,062 Note 14 - Leases Our lease obligations primarily consist of operating leases for our data centers and offices, with lease periods expiring between fiscal years 2027 and 2075. Future minimum lease obligations under our non-cancelable lease agreements as of April 26, 2026 were as follows: Operating Lease Obligations (In millions) Fiscal Year: 2027 (excluding the first quarter of fiscal 2027) $ 460 2028 626 2029 602 2030 530 2031 462 2032 and thereafter 2,924 Total 5,604 Less imputed interest 1,260 Present value of net future minimum lease payments 4,344 Less short-term operating lease liabilities 466 Long-term operating lease liabilities $ 3,878 Between the second quarter of fiscal year 2027 and fiscal year 2033, we expect to commence leases with future obligations of $ 32.4 billion, primarily for data center leases to support our research and development efforts, with lease terms of 3 to 20 years. Operating lease costs were $ 171 million and $ 101 million for the first quarter of fiscal years 2027 and 2026, respectively. Short-term, variable, and finance lease costs for the first quarter of fiscal years 2027 and 2026 were not significant. Other information related to leases was as follows: Three Months Ended Apr 26, 2026 Apr 27, 2025 (In millions) Supplemental cash flows information Operating cash flow used for operating leases $ 185 $ 96 Operating lease assets obtained in exchange for lease obligations $ 1,516 $ 98 21 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) As of April 26, 2026, our operating leases have a weighted average remaining lease term of 10.4 years and a weighted average discount rate of 4.61 %. As of January 25, 2026, our operating leases had a weighted average remaining lease term of 8.8 years and a weighted average discount rate of 4.38 %. 22