Nvidia Q1 Earnings Preview: 3 Key Points Analysts Are Watching

Nvidia (NVDA) will report its first quarter earnings for fiscal 2026 on Wednesday, May 20. Analysts are closely watching the AI chip leader's performance after a massive rally over the past two years. D.A. Davidson's head of technology research, Gil Luria, outlines three key points he'll be listening for on the earnings call.

Key Financial Results

Results have not been released yet. The focus will be on:

• Revenue: Expected to continue growing, but attention is on the pace of deceleration.
• Net Income: Likely strong, driven by data center sales.
• Earnings Per Share (EPS): Analysts expect higher EPS year-over-year.

Highlights from the Report

No official statement yet. Analysts are tracking:

• Gross Margins: Can Nvidia maintain margins above 70% amid rising competition?
• Data Center Sales: The primary growth driver.
• Gaming Segment: Is it recovering from the downturn?

Forward Guidance

Gil Luria will focus on Q2 revenue guidance. Any sign of slowing growth could impact the stock. Current expectations point to quarterly revenue exceeding $30 billion.

Impact on the Stock

Nvidia's stock (NVDA) has surged over 100% in the past year. A positive earnings surprise could push the stock to new highs, while any guidance miss might trigger a correction.

What This Means for Investors

The key is Nvidia's ability to sustain growth amid competition from AMD (AMD) and Broadcom (AVGO). Investors should watch margins and guidance closely to gauge the company's ability to maintain its AI chip leadership.