Nvidia announces record gaming revenue boost following RTX 50 series, with Switch 2 just around the corner
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As we’re more than halfway through Q2 of the year, Nvidia has released its financial results for Q1 of 2025. Having ended in April, there has been a significant increase in its revenue. The highlights are that general revenue was $44.1 billion, an increase of 12% from Q4, and up 69% from the same time a year ago.
Nvidia also highlights that Data Center revenue alone made up $39.1 billion of that sum, which itself increased by 10% from Q4 and by an even greater amount from the previous year, with a 73% increase. That’s even following the whole situation following its H20 China export ban, where Nvidia incurred a $4.5 billion charge with the excess inventory.
Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine' designed for reasoning— is now in full-scale production across system makers and cloud service providers. Global demand for NVIDIA's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation.
Jensen Huang, founder and CEO of NVIDIA
Q1 Fiscal 2026 Summary
Another area the company gained in was its AI and gaming PC sector. With the launch of the RTX 5070 and 5060 graphics cards and Blackwell laptops, the revenue reached $3.8 billion, up 48% from Q4 and 42% up from the previous year. So even with mixed reviews, the sales haven’t been as clearly affected.
While professional visualization remained flat with the previous quarter at $509 million, it was up 19% from a year ago. As automotive and roboatics revenue was down 1% from Q4, revenue sat at $567 million, which was still 72% up from the previous year.
| Q1 FY26 | Q4 FY25 | Q1 FY25 | Q/Q | Y/Y | |
|---|---|---|---|---|---|
| Revenue | $44,062 | $39,331 | $26,044 | 12% | 69% |
| Gross margin | 60.5% | 73.0% | 78.4% | (12.5) pts | (17.9) pts |
| Operating expenses | $5,030 | $4,689 | $3,497 | 7% | 44% |
| Operating income | $21,638 | $24,034 | $16,909 | (10)% | 28% |
| Net income | $18,775 | $22,091 | $14,881 | (15)% | 26% |
| Diluted earnings per share* | $0.76 | $0.89 | $0.60 | (15)% | 27% |
| Q1 FY26 | Q4 FY25 | Q1 FY25 | Q/Q | Y/Y | |
|---|---|---|---|---|---|
| Revenue | $44,062 | $39,331 | $26,044 | 12% | 69% |
| Gross margin | 61.0% | 73.5% | 78.9% | (12.5) pts | (17.9) pts |
| Gross margin excluding H20 charge | 71.3% | ||||
| Operating expenses | $3,583 | $3,378 | $2,501 | 6% | 43% |
| Operating income | $23,275 | $25,516 | $18,059 | (9)% | 29% |
| Net income | $19,894 | $22,066 | $15,238 | (10)% | 31% |
| Diluted earnings per share* | $0.81 | $0.89 | $0.61 | (9)% | 33% |
| Diluted earnings per share excluding H20 charge and related tax impact | $0.96 |
When it comes to the next quarter, the one we’re currently in, Nvidia expects a revenue of $45 billion (plus or minus 2%), a $900 million increase over Q1. Along with its GeForce graphics cards, we should also take into account Nintendo’s latest console.
The Nintendo Switch 2 release date is on June 5th, and it features an Nvidia GPU at its heart, which Nvidia claims offers “10x the graphics performance” of the original console. Considering Nintendo expects the Switch 2 to sell incredibly well, this partnership could prove to be a good revenue stream as more units are manufactured following launch.
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