Page / Page / Page
(a) ..................................... (a) / (a) / 1. / 1. / 1. / Financial Statements / Financial Statements / Financial Statements
Report of Independent Registered Public Accounting Firm (PCAOB ID: 238) / Report of Independent Registered Public Accounting Firm (PCAOB ID: 238) / Report of Independent Registered Public Accounting Firm (PCAOB ID: 238) / 49 / 49 / 49
Consolidated Statements of Income for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / Consolidated Statements of Income for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / Consolidated Statements of Income for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / 51 / 51 / 51
Consolidated Statements of Comprehensive Income for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / Consolidated Statements of Comprehensive Income for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / Consolidated Statements of Comprehensive Income for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / 52 / 52 / 52
Consolidated Balance Sheets as of January 2 5 , 202 6 and January 2 6 , 202 5 / Consolidated Balance Sheets as of January 2 5 , 202 6 and January 2 6 , 202 5 / Consolidated Balance Sheets as of January 2 5 , 202 6 and January 2 6 , 202 5 / 53 / 53 / 53
Consolidated Statements of Shareholders’ Equity for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / Consolidated Statements of Shareholders’ Equity for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / Consolidated Statements of Shareholders’ Equity for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / 54 / 54 / 54
Consolidated Statements of Cash Flows for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / Consolidated Statements of Cash Flows for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / Consolidated Statements of Cash Flows for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / 55 / 55 / 55
Notes to the Consolidated Financial Statements / Notes to the Consolidated Financial Statements / Notes to the Consolidated Financial Statements / 56 / 56 / 56
2. / 2. / 2. / Financial Statement Schedule / Financial Statement Schedule / Financial Statement Schedule
Schedule II Valuation and Qualifying Accounts for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / Schedule II Valuation and Qualifying Accounts for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / Schedule II Valuation and Qualifying Accounts for the years ended January 2 5 , 202 6 , January 2 6 , 202 5 , and January 2 8 , 202 4 / 81 / 81 / 81
3. / 3. / 3. / Exhibits / Exhibits / Exhibits
The exhibits listed in the accompanying index to exhibits are filed or incorporated by reference as a part of this Annual Report on Form 10-K. / The exhibits listed in the accompanying index to exhibits are filed or incorporated by reference as a part of this Annual Report on Form 10-K. / The exhibits listed in the accompanying index to exhibits are filed or incorporated by reference as a part of this Annual Report on Form 10-K. / 82 / 82 / 82
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Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of NVIDIA Corporation Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of NVIDIA Corporation and its subsidiaries (the “Company”) as of January 25, 2026 and January 26, 2025, and the related consolidated statements of income, comprehensive income, shareholders' equity, and cash flows for each of the three years in the period ended January 25, 2026, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of January 25, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of January 25, 2026 and January 26, 2025, and the results of its operations and its cash flows for each of the three years in the period ended January 25, 2026 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of January 25, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 49
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Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Valuation of Inventories - Provisions for Excess or Obsolete Inventories and Excess Product Purchase Commitments As described in Notes 1, 9, and 12 to the consolidated financial statements, the Company charges cost of sales for inventory provisions to write-down inventory for excess or obsolete inventory and for excess product purchase commitments. Most of the Company’s inventory provisions relate to excess quantities of products, based on the Company’s inventory levels and future product purchase commitments compared to assumptions about future demand including the impact of market conditions such as regulatory export restrictions on their products. As of January 25, 2026, the Company’s consolidated inventories balance was $21.4 billion and the Company’s consolidated outstanding inventory purchase and long-term supply and capacity obligations balance was $95.2 billion, of which a significant portion relates to inventory purchase obligations. The principal considerations for our determination that performing procedures relating to the valuation of inventories, specifically the provisions for excess or obsolete inventories and excess product purchase commitments, is a critical audit matter are the significant judgment by management when developing provisions for excess or obsolete inventories and excess product purchase commitments, including developing assumptions related to future demand and market conditions. This in turn led to significant auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s assumptions related to future demand and market conditions. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s provisions for excess or obsolete inventories and excess product purchase commitments, including controls over management’s assumptions related to future demand and market conditions. These procedures also included, among others, testing management’s process for developing the provisions for excess or obsolete inventories and excess product purchase commitments; evaluating the appropriateness of management’s approach; testing the completeness and accuracy of underlying data used in the approach; and evaluating the reasonableness of management’s assumptions related to future demand and market conditions. Evaluating management’s assumptions related to future demand and market conditions involved evaluating whether the assumptions used by management were reasonable considering (i) current and past results, including historical product life cycle, (ii) the consistency with external market and industry data, and (iii) changes in technology.
/s/PricewaterhouseCoopers LLP
San Jose, California February 25, 2026
We have served as the Company’s auditor since 2004. 50
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NVIDIA Corporation and Subsidiaries Consolidated Statements of Income (In millions, except per share data)
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
Revenue ................................. Revenue / Revenue / $ / 215,938 / $ / 130,497 / $ / 60,922
Cost of revenue ......................... Cost of revenue / Cost of revenue / 62,475 / 62,475 / 32,639 / 32,639 / 16,621 / 16,621
Gross profit ............................ Gross profit / Gross profit / 153,463 / 153,463 / 97,858 / 97,858 / 44,301 / 44,301
Operating expenses ...................... Operating expenses / Operating expenses
Research and development ................ Research and development / Research and development / 18,497 / 18,497 / 12,914 / 12,914 / 8,675 / 8,675
Sales, general and administrative ....... Sales, general and administrative / Sales, general and administrative / 4,579 / 4,579 / 3,491 / 3,491 / 2,654 / 2,654
Total operating expenses ................ Total operating expenses / Total operating expenses / 23,076 / 23,076 / 16,405 / 16,405 / 11,329 / 11,329
Operating income ........................ Operating income / Operating income / 130,387 / 130,387 / 81,453 / 81,453 / 32,972 / 32,972
Interest income ......................... Interest income / Interest income / 2,300 / 2,300 / 1,786 / 1,786 / 866 / 866
Interest expense ........................ Interest expense / Interest expense / (259) / (259) / (247) / (247) / (257) / (257)
Other income, net ....................... Other income, net / Other income, net / 9,022 / 9,022 / 1,034 / 1,034 / 237 / 237
Total other income, net ................. Total other income, net / Total other income, net / 11,063 / 11,063 / 2,573 / 2,573 / 846 / 846
Income before income tax ................ Income before income tax / Income before income tax / 141,450 / 141,450 / 84,026 / 84,026 / 33,818 / 33,818
Income tax expense ...................... Income tax expense / Income tax expense / 21,383 / 21,383 / 11,146 / 11,146 / 4,058 / 4,058
Net income .............................. Net income / Net income / $ / 120,067 / $ / 72,880 / $ / 29,760
Net income per share: ................... Net income per share: / Net income per share:
Basic ................................... Basic / Basic / $ / 4.93 / $ / 2.97 / $ / 1.21
Diluted ................................. Diluted / Diluted / $ / 4.90 / $ / 2.94 / $ / 1.19
Weighted average shares used in per share computation: ... Weighted average shares used in per share computation: / Weighted average shares used in per share computation:
Basic ................................... Basic / Basic / 24,359 / 24,359 / 24,555 / 24,555 / 24,690 / 24,690
Diluted ................................. Diluted / Diluted / 24,514 / 24,514 / 24,804 / 24,804 / 24,940 / 24,940
See accompanying Notes to the Consolidated Financial Statements. 51
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NVIDIA Corporation and Subsidiaries Consolidated Statements of Comprehensive Income (In millions)
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
Net income .............................. Net income / Net income / $ / 120,067 / $ / 72,880 / $ / 29,760
Other comprehensive income, net of tax ... Other comprehensive income, net of tax / Other comprehensive income, net of tax
Available-for-sale securities: .......... Available-for-sale securities: / Available-for-sale securities:
Net change in unrealized gain ........... Net change in unrealized gain / Net change in unrealized gain / 107 / 107 / 1 / 1 / 80 / 80
Cash flow hedges: ....................... Cash flow hedges: / Cash flow hedges:
Net change in unrealized gain (loss) .... Net change in unrealized gain (loss) / Net change in unrealized gain (loss) / 43 / 43 / — / — / (10) / (10)
Other comprehensive income, net of tax ... Other comprehensive income, net of tax / Other comprehensive income, net of tax / 150 / 150 / 1 / 1 / 70 / 70
Total comprehensive income .............. Total comprehensive income / Total comprehensive income / $ / 120,217 / $ / 72,881 / $ / 29,830
See accompanying Notes to the Consolidated Financial Statements. 52
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NVIDIA Corporation and Subsidiaries Consolidated Balance Sheets (In millions, except par value)
Jan 25, 2026
Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025
Assets .................................. Assets / Assets
Current assets: ......................... Current assets: / Current assets:
Cash and cash equivalents ............... Cash and cash equivalents / Cash and cash equivalents / $ / 10,605 / $ / 8,589
Marketable securities ................... Marketable securities / Marketable securities / 51,951 / 51,951 / 34,621 / 34,621
Accounts receivable, net ................ Accounts receivable, net / Accounts receivable, net / 38,466 / 38,466 / 23,065 / 23,065
Inventories ............................. Inventories / Inventories / 21,403 / 21,403 / 10,080 / 10,080
Prepaid expenses and other current assets ... Prepaid expenses and other current assets / Prepaid expenses and other current assets / 3,180 / 3,180 / 3,771 / 3,771
Total current assets .................... Total current assets / Total current assets / 125,605 / 125,605 / 80,126 / 80,126
Property and equipment, net ............. Property and equipment, net / Property and equipment, net / 10,383 / 10,383 / 6,283 / 6,283
Operating lease assets .................. Operating lease assets / Operating lease assets / 2,867 / 2,867 / 1,793 / 1,793
Goodwill ................................ Goodwill / Goodwill / 20,832 / 20,832 / 5,188 / 5,188
Intangible assets, net .................. Intangible assets, net / Intangible assets, net / 3,306 / 3,306 / 807 / 807
Deferred income tax assets .............. Deferred income tax assets / Deferred income tax assets / 13,258 / 13,258 / 10,979 / 10,979
Non-marketable equity securities ........ Non-marketable equity securities / Non-marketable equity securities / 22,251 / 22,251 / 3,387 / 3,387
Other assets ............................ Other assets / Other assets / 8,301 / 8,301 / 3,038 / 3,038
Total assets ............................ Total assets / Total assets / $ / 206,803 / $ / 111,601
Liabilities and Shareholders' Equity .... Liabilities and Shareholders' Equity / Liabilities and Shareholders' Equity
Current liabilities: .................... Current liabilities: / Current liabilities:
Accounts payable ........................ Accounts payable / Accounts payable / $ / 9,812 / $ / 6,310
Accrued and other current liabilities ... Accrued and other current liabilities / Accrued and other current liabilities / 21,352 / 21,352 / 11,737 / 11,737
Short-term debt ......................... Short-term debt / Short-term debt / 999 / 999 / — / —
Total current liabilities ............... Total current liabilities / Total current liabilities / 32,163 / 32,163 / 18,047 / 18,047
Long-term debt .......................... Long-term debt / Long-term debt / 7,469 / 7,469 / 8,463 / 8,463
Long-term operating lease liabilities ... Long-term operating lease liabilities / Long-term operating lease liabilities / 2,572 / 2,572 / 1,519 / 1,519
Other long-term liabilities ............. Other long-term liabilities / Other long-term liabilities / 7,306 / 7,306 / 4,245 / 4,245
Total liabilities ....................... Total liabilities / Total liabilities / 49,510 / 49,510 / 32,274 / 32,274
Commitments and contingencies - see Note 12 ... Commitments and contingencies - see Note 12 / Commitments and contingencies - see Note 12 / — / — / — / —
Shareholders’ equity: ................... Shareholders’ equity: / Shareholders’ equity:
Preferred stock, $0.001 par value; 2 shares authorized; none issued ... Preferred stock, $0.001 par value; 2 shares authorized; none issued / Preferred stock, $0.001 par value; 2 shares authorized; none issued / — / — / — / —
Common stock, $0.001 par value; 80,000 shares authorized; 24,304 shares issued and outstanding as of January 25, 2026; 24,477 shares issued and outstanding as of January 26, 2025 ... Common stock, $0.001 par value; 80,000 shares authorized; 24,304 shares issued and outstanding as of January 25, 2026; 24,477 shares issued and outstanding as of January 26, 2025 / Common stock, $0.001 par value; 80,000 shares authorized; 24,304 shares issued and outstanding as of January 25, 2026; 24,477 shares issued and outstanding as of January 26, 2025 / 24 / 24 / 24 / 24
Additional paid-in capital .............. Additional paid-in capital / Additional paid-in capital / 10,118 / 10,118 / 11,237 / 11,237
Accumulated other comprehensive income ... Accumulated other comprehensive income / Accumulated other comprehensive income / 178 / 178 / 28 / 28
Retained earnings ....................... Retained earnings / Retained earnings / 146,973 / 146,973 / 68,038 / 68,038
Total shareholders' equity .............. Total shareholders' equity / Total shareholders' equity / 157,293 / 157,293 / 79,327 / 79,327
Total liabilities and shareholders' equity ... Total liabilities and shareholders' equity / Total liabilities and shareholders' equity / $ / 206,803 / $ / 111,601
See accompanying Notes to the Consolidated Financial Statements.
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NVIDIA Corporation and Subsidiaries Consolidated Statements of Shareholders' Equity
Common StockOutstanding
Common StockOutstanding / Common StockOutstanding / Common StockOutstanding / Common StockOutstanding / Common StockOutstanding / Common StockOutstanding / Common StockOutstanding / Common StockOutstanding / Additional Paid-in / Additional Paid-in / Additional Paid-in / Accumulated Other Comprehensive / Accumulated Other Comprehensive / Accumulated Other Comprehensive / Retained / Retained / Retained / Total Shareholders' / Total Shareholders' / Total Shareholders'
Shares / Shares / Shares / Amount / Amount / Amount / Capital / Capital / Capital / Income (Loss) / Income (Loss) / Income (Loss) / Earnings / Earnings / Earnings / Equity / Equity / Equity
(In millions, except per share data) .... (In millions, except per share data) / (In millions, except per share data)
Balances as of Jan 29, 2023 ............. Balances as of Jan 29, 2023 / Balances as of Jan 29, 2023 / 24,661 / 24,661 / $ / 25 / $ / 11,948 / $ / (43) / $ / 10,171 / $ / 22,101
Net income .............................. Net income / Net income / — / — / — / — / — / — / — / — / 29,760 / 29,760 / 29,760 / 29,760
Other comprehensive income .............. Other comprehensive income / Other comprehensive income / — / — / — / — / — / — / 70 / 70 / — / — / 70 / 70
Issuance of common stock ................ Issuance of common stock / Issuance of common stock / 265 / 265 / — / — / 403 / 403 / — / — / — / — / 403 / 403
Tax withholding related to common stock ... Tax withholding related to common stock / Tax withholding related to common stock / (72) / (72) / — / — / (2,783) / (2,783) / — / — / — / — / (2,783) / (2,783)
Shares repurchased ...................... Shares repurchased / Shares repurchased / (211) / (211) / — / — / (27) / (27) / — / — / (9,719) / (9,719) / (9,746) / (9,746)
Cash dividends declared and paid ($0.016 per common share) ... Cash dividends declared and paid ($0.016 per common share) / Cash dividends declared and paid ($0.016 per common share) / — / — / — / — / — / — / — / — / (395) / (395) / (395) / (395)
Stock-based compensation ................ Stock-based compensation / Stock-based compensation / — / — / — / — / 3,568 / 3,568 / — / — / — / — / 3,568 / 3,568
Balances as of Jan 28, 2024 ............. Balances as of Jan 28, 2024 / Balances as of Jan 28, 2024 / 24,643 / 24,643 / 25 / 25 / 13,109 / 13,109 / 27 / 27 / 29,817 / 29,817 / 42,978 / 42,978
Net income .............................. Net income / Net income / — / — / — / — / — / — / — / — / 72,880 / 72,880 / 72,880 / 72,880
Other comprehensive income .............. Other comprehensive income / Other comprehensive income / — / — / — / — / — / — / 1 / 1 / — / — / 1 / 1
Issuance of common stock ................ Issuance of common stock / Issuance of common stock / 203 / 203 / — / — / 490 / 490 / — / — / — / — / 490 / 490
Tax withholding related to common stock ... Tax withholding related to common stock / Tax withholding related to common stock / (59) / (59) / — / — / (6,930) / (6,930) / — / — / — / — / (6,930) / (6,930)
Shares repurchased ...................... Shares repurchased / Shares repurchased / (310) / (310) / (1) / (1) / (189) / (189) / — / — / (33,825) / (33,825) / (34,015) / (34,015)
Cash dividends declared and paid ($0.034 per common share) ... Cash dividends declared and paid ($0.034 per common share) / Cash dividends declared and paid ($0.034 per common share) / — / — / — / — / — / — / — / — / (834) / (834) / (834) / (834)
Stock-based compensation ................ Stock-based compensation / Stock-based compensation / — / — / — / — / 4,757 / 4,757 / — / — / — / — / 4,757 / 4,757
Balances as of Jan 26, 2025 ............. Balances as of Jan 26, 2025 / Balances as of Jan 26, 2025 / 24,477 / 24,477 / 24 / 24 / 11,237 / 11,237 / 28 / 28 / 68,038 / 68,038 / 79,327 / 79,327
Net income .............................. Net income / Net income / — / — / — / — / — / — / — / — / 120,067 / 120,067 / 120,067 / 120,067
Other comprehensive income .............. Other comprehensive income / Other comprehensive income / — / — / — / — / — / — / 150 / 150 / — / — / 150 / 150
Issuance of common stock ................ Issuance of common stock / Issuance of common stock / 160 / 160 / — / — / 644 / 644 / — / — / — / — / 644 / 644
Tax withholding related to common stock ... Tax withholding related to common stock / Tax withholding related to common stock / (51) / (51) / — / — / (7,948) / (7,948) / — / — / — / — / (7,948) / (7,948)
Shares repurchased ...................... Shares repurchased / Shares repurchased / (282) / (282) / — / — / (230) / (230) / — / — / (40,158) / (40,158) / (40,388) / (40,388)
Cash dividends declared and paid ($0.04 per common share) ... Cash dividends declared and paid ($0.04 per common share) / Cash dividends declared and paid ($0.04 per common share) / — / — / — / — / — / — / — / — / (974) / (974) / (974) / (974)
Fair value of partially vested equity awards assumed in connection with acquisitions ... Fair value of partially vested equity awards assumed in connection with acquisitions / Fair value of partially vested equity awards assumed in connection with acquisitions / — / — / — / — / 28 / 28 / — / — / — / — / 28 / 28
Stock-based compensation ................ Stock-based compensation / Stock-based compensation / — / — / — / — / 6,387 / 6,387 / — / — / — / — / 6,387 / 6,387
Balances as of Jan 25, 2026 ............. Balances as of Jan 25, 2026 / Balances as of Jan 25, 2026 / 24,304 / 24,304 / $ / 24 / $ / 10,118 / $ / 178 / $ / 146,973 / $ / 157,293
See accompanying Notes to the Consolidated Financial Statements. 54
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NVIDIA Corporation and Subsidiaries Consolidated Statements of Cash Flows (In millions)
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
Cash flows from operating activities: ... Cash flows from operating activities: / Cash flows from operating activities:
Net income .............................. Net income / Net income / $ / 120,067 / $ / 72,880 / $ / 29,760
Adjustments to reconcile net income to net cash provided by operating activities: ... Adjustments to reconcile net income to net cash provided by operating activities: / Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense ........ Stock-based compensation expense / Stock-based compensation expense / 6,386 / 6,386 / 4,737 / 4,737 / 3,549 / 3,549
Depreciation and amortization ........... Depreciation and amortization / Depreciation and amortization / 2,843 / 2,843 / 1,864 / 1,864 / 1,508 / 1,508
Gains on non-marketable equity securities and publicly-held equity securities, net ... Gains on non-marketable equity securities and publicly-held equity securities, net / Gains on non-marketable equity securities and publicly-held equity securities, net / (8,918) / (8,918) / (1,030) / (1,030) / (238) / (238)
Deferred income taxes ................... Deferred income taxes / Deferred income taxes / (1,424) / (1,424) / (4,477) / (4,477) / (2,489) / (2,489)
Other ................................... Other / Other / (287) / (287) / (502) / (502) / (278) / (278)
Changes in operating assets and liabilities, net of acquisitions: ... Changes in operating assets and liabilities, net of acquisitions: / Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable ..................... Accounts receivable / Accounts receivable / (15,399) / (15,399) / (13,063) / (13,063) / (6,172) / (6,172)
Inventories ............................. Inventories / Inventories / (11,324) / (11,324) / (4,781) / (4,781) / (98) / (98)
Prepaid expenses and other assets ....... Prepaid expenses and other assets / Prepaid expenses and other assets / 577 / 577 / (395) / (395) / (1,522) / (1,522)
Accounts payable ........................ Accounts payable / Accounts payable / 3,096 / 3,096 / 3,357 / 3,357 / 1,531 / 1,531
Accrued and other current liabilities ... Accrued and other current liabilities / Accrued and other current liabilities / 5,257 / 5,257 / 4,278 / 4,278 / 2,025 / 2,025
Other long-term liabilities ............. Other long-term liabilities / Other long-term liabilities / 1,844 / 1,844 / 1,221 / 1,221 / 514 / 514
Net cash provided by operating activities ... Net cash provided by operating activities / Net cash provided by operating activities / 102,718 / 102,718 / 64,089 / 64,089 / 28,090 / 28,090
Cash flows from investing activities: ... Cash flows from investing activities: / Cash flows from investing activities:
Proceeds from sales of marketable securities ... Proceeds from sales of marketable securities / Proceeds from sales of marketable securities / 15,157 / 15,157 / 495 / 495 / 50 / 50
Proceeds from maturities of marketable securities ... Proceeds from maturities of marketable securities / Proceeds from maturities of marketable securities / 11,226 / 11,226 / 11,195 / 11,195 / 9,732 / 9,732
Proceeds from sales of non-marketable equity securities ... Proceeds from sales of non-marketable equity securities / Proceeds from sales of non-marketable equity securities / 84 / 84 / 171 / 171 / 1 / 1
Purchases of marketable securities ...... Purchases of marketable securities / Purchases of marketable securities / (40,616) / (40,616) / (26,575) / (26,575) / (18,211) / (18,211)
Purchases of non-marketable equity securities ... Purchases of non-marketable equity securities / Purchases of non-marketable equity securities / (17,502) / (17,502) / (1,486) / (1,486) / (862) / (862)
Groq, Inc. .............................. Groq, Inc. / Groq, Inc. / (13,000) / (13,000) / — / — / — / —
Purchases related to property and equipment and intangible assets ... Purchases related to property and equipment and intangible assets / Purchases related to property and equipment and intangible assets / (6,042) / (6,042) / (3,236) / (3,236) / (1,069) / (1,069)
Acquisitions, net of cash acquired ...... Acquisitions, net of cash acquired / Acquisitions, net of cash acquired / (1,535) / (1,535) / (1,007) / (1,007) / (83) / (83)
Other ................................... Other / Other / — / — / 22 / 22 / (124) / (124)
Net cash used in investing activities ... Net cash used in investing activities / Net cash used in investing activities / (52,228) / (52,228) / (20,421) / (20,421) / (10,566) / (10,566)
Cash flows from financing activities: ... Cash flows from financing activities: / Cash flows from financing activities:
Proceeds related to employee stock plans ... Proceeds related to employee stock plans / Proceeds related to employee stock plans / 644 / 644 / 490 / 490 / 403 / 403
Payments related to repurchases of common stock ... Payments related to repurchases of common stock / Payments related to repurchases of common stock / (40,086) / (40,086) / (33,706) / (33,706) / (9,533) / (9,533)
Payments related to employee stock plan taxes ... Payments related to employee stock plan taxes / Payments related to employee stock plan taxes / (7,948) / (7,948) / (6,930) / (6,930) / (2,783) / (2,783)
Dividends paid .......................... Dividends paid / Dividends paid / (974) / (974) / (834) / (834) / (395) / (395)
Principal payments on property and equipment and intangible assets ... Principal payments on property and equipment and intangible assets / Principal payments on property and equipment and intangible assets / (101) / (101) / (129) / (129) / (74) / (74)
Repayment of debt ....................... Repayment of debt / Repayment of debt / — / — / (1,250) / (1,250) / (1,250) / (1,250)
Other ................................... Other / Other / (9) / (9) / — / — / (1) / (1)
Net cash used in financing activities ... Net cash used in financing activities / Net cash used in financing activities / (48,474) / (48,474) / (42,359) / (42,359) / (13,633) / (13,633)
Change in cash and cash equivalents ..... Change in cash and cash equivalents / Change in cash and cash equivalents / 2,016 / 2,016 / 1,309 / 1,309 / 3,891 / 3,891
Cash and cash equivalents at beginning of period ... Cash and cash equivalents at beginning of period / Cash and cash equivalents at beginning of period / 8,589 / 8,589 / 7,280 / 7,280 / 3,389 / 3,389
Cash and cash equivalents at end of period ... Cash and cash equivalents at end of period / Cash and cash equivalents at end of period / $ / 10,605 / $ / 8,589 / $ / 7,280
Supplemental disclosures of cash flow information: ... Supplemental disclosures of cash flow information: / Supplemental disclosures of cash flow information:
Cash paid for income taxes, net ......... Cash paid for income taxes, net / Cash paid for income taxes, net / $ / 20,288 / $ / 15,118 / $ / 6,549
See accompanying Notes to the Consolidated Financial Statements. 55
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Note 1 - Organization and Summary of Significant Accounting Policies Our Company Headquartered in Santa Clara, California, NVIDIA was incorporated in California in April 1993 and reincorporated in Delaware in April 1998. All references to “NVIDIA,” “we,” “us,” “our” or the “Company” mean NVIDIA Corporation and its subsidiaries. Certain prior fiscal year balances have been reclassified to conform to the current fiscal year presentation. Non-marketable equity securities, previously presented within other assets, were reclassified to be presented separately on our consolidated balance sheets and had no impact to total assets or consolidated statement of cash flows. Fiscal Year We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal years 2026, 2025 and 2024 were all 52-week years. Fiscal year 2027 will be a 53-week year with the fourth quarter consisting of 14 weeks. Principles of Consolidation Our 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. On an on-going basis, we evaluate our estimates, including those related to accounts receivable, cash equivalents and marketable securities, goodwill, income taxes, inventories and product purchase commitments, investigation and settlement costs, litigation, non-marketable equity securities, other contingencies, property, plant, and equipment, revenue recognition, and stock-based compensation. These estimates are based on historical facts and various other assumptions that we believe are reasonable.
Revenue Recognition We derive our revenue primarily from product sales including hardware and systems. We determine revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract (where revenue is allocated on a relative standalone selling price basis by maximizing the use of observable inputs to determine the standalone selling price for each performance obligation); and (5) recognition of revenue when, or as, we satisfy a performance obligation. Payment from customers, per our standard payment terms, is generally due shortly after delivery of our products. Product Sales Revenue Revenue from product sales is recognized upon transfer of control of products to customers in an amount that reflects the consideration we expect to receive in exchange for those products. Certain products are sold with support or an extended warranty. Support and extended warranty revenue are recognized ratably over the service period, or as services are performed. Revenue is recognized net of allowances for returns, customer programs and any taxes collected from customers. For products sold with a right of return, we record a reduction to revenue by establishing a sales return allowance for estimated product returns at the time revenue is recognized, based primarily on historical return rates. However, if product returns for a fiscal period are anticipated to exceed historical return rates, we may determine that additional sales return allowances are required to accurately reflect our estimated exposure for product returns. Our customer programs involve rebates, which are designed to serve as sales incentives to resellers of our products in various target markets, and MDFs which represent monies paid to our partners that are earmarked for market segment development and are designed to support our partners’ activities while also promoting NVIDIA products. We account for customer programs as a reduction to revenue and accrue for such programs for potential rebates and MDFs based on the amount we expect to be claimed by customers. 56
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Contracts with Multiple Performance Obligations Our contracts may contain more than one deliverable, each of which is separately accounted for as a distinct performance obligation. We account for multiple agreements with a single customer as a single contract if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single contract. We allocate the total transaction price to each distinct performance obligation in an arrangement with multiple performance obligations on a relative standalone selling price basis. The standalone selling price reflects the price we would charge for a specific product or service if it were sold separately in similar circumstances and to similar customers. When determining standalone selling price, we maximize the use of observable inputs.
Product Warranties We offer a limited warranty to end-users ranging from one to three years for products to repair or replace products for manufacturing defects or hardware component failures. Cost of revenue includes the estimated cost of product warranties that are calculated at the point of revenue recognition. Under limited circumstances, we may offer an extended limited warranty to customers for certain products. We also accrue for known warranty and indemnification issues if a loss is probable and can be reasonably estimated.
Stock-based Compensation We use the closing trading price of our common stock on the date of grant, minus a dividend yield discount, as the fair value of awards of restricted stock units, or RSUs, and performance stock units, or PSUs, that are based on our corporate financial performance targets. We use a Monte Carlo simulation on the date of grant to estimate the fair value of PSUs that are based on our stock performance compared to market performance, or market-based PSUs. The compensation expense for RSUs and market-based PSUs is recognized using a straight-line attribution method over the requisite employee service period while compensation expense for PSUs is recognized using an accelerated amortization model based on performance targets probable of achievement. We estimate the fair value of shares to be issued under our employee stock purchase plan, or ESPP, using the Black-Scholes model at the commencement of an offering period in March and September of each year. Stock-based compensation for our ESPP is expensed using an accelerated amortization model. Additionally, for RSUs, PSUs, and market-based PSUs, we estimate expected forfeitures based on our historical forfeitures.
Litigation, Investigation and Settlement Costs We currently are, and will likely continue to be subject to claims, litigation, and other actions, including potential regulatory proceedings, involving patent and other intellectual property matters, taxes, labor and employment, competition and antitrust, commercial disputes, goods and services offered by us and by third parties, and other matters. There are many uncertainties associated with any litigation or investigation, and we cannot be certain that these actions or other third-party claims against us will be resolved without litigation, fines and/or substantial settlement payments or judgments. If information becomes available that causes us to determine that a loss in any of our pending litigation, investigations or settlements is probable, and we can reasonably estimate the loss associated with such events, we will record the loss. However, the actual liability in any such litigation or investigation may be materially different from our estimates, which could require us to record additional costs. If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the reasonably possible loss.
Foreign Currency Remeasurement We use the U.S. dollar as our functional currency for our subsidiaries. Foreign currency monetary assets and liabilities are remeasured into United States dollars at end-of-period exchange rates. Non-monetary assets and liabilities such as property and equipment and equity are remeasured at historical exchange rates. Revenue and expenses are remeasured at exchange rates in effect during each period, except for those expenses related to non-monetary balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency remeasurement are included in earnings in our Consolidated Statements of Income and to date have not been significant.
Income Taxes We recognize federal, state and foreign current tax liabilities or assets based on our estimate of taxes payable or refundable in the current fiscal year by tax jurisdiction. We recognize federal, state and foreign deferred tax assets or liabilities, as appropriate, for our estimate of future tax effects attributable to temporary differences and carryforwards; and we record a valuation allowance to reduce any deferred tax assets by the amount of any tax benefits that, based on available evidence and judgment, are not expected to be realized. Our calculation of deferred tax assets and liabilities is based on certain estimates and judgments and involves dealing with uncertainties in the application of complex tax laws. Our estimates of deferred tax assets and liabilities may change 57
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based, in part, on added certainty or finality to an anticipated outcome, changes in accounting standards or tax laws in the U.S., or foreign jurisdictions where we operate, or changes in other facts or circumstances. In addition, we recognize liabilities for potential U.S. and foreign income tax contingencies based on our estimate of whether, and the extent to which, additional taxes may be due. If we determine that payment of these amounts is unnecessary or if the recorded tax liability is less than our current assessment, we may be required to recognize an income tax benefit or additional income tax expense in our financial statements accordingly. As of January 25, 2026, we had a valuation allowance of $768 million related to capital loss carryforwards, and certain other deferred tax assets that management determined are not likely to be realized due, in part, to jurisdictional projections of future taxable income, including capital gains. To the extent realization of the deferred tax assets becomes more-likely-than-not, we would recognize such deferred tax assets as income tax benefits during the period. We recognize the benefit from a tax position only if it is more-likely-than-not that the position would be sustained upon audit based solely on the technical merits of the tax position. Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense.
Net Income Per Share Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common and potentially dilutive shares outstanding during the period, using the treasury stock method. Any anti-dilutive effect of equity awards outstanding is not included in the computation of diluted net income per share.
Cash and Cash Equivalents and Marketable Securities We consider all highly liquid investments that are readily convertible into cash and have an original maturity of three months or less at the time of purchase to be cash equivalents. Marketable securities consist of highly liquid debt investments with maturities of greater than three months when purchased and publicly-held equity securities. We classify these investments as current or long term based on the nature of the investments and their availability for use in current operations. We record our debt investments as cash equivalents and marketable debt securities and classify them at the date of acquisition as available-for-sale. These available-for-sale debt securities are reported at fair value with the related unrealized gains and losses included in accumulated other comprehensive income or loss, a component of shareholders’ equity, net of tax. The fair value of interest-bearing debt securities includes accrued interest. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in the Other income (expense), net, section of our Consolidated Statements of Income. Available-for-sale debt securities are subject to impairment review. If the estimated fair value of available-for-sale debt securities is less than its amortized cost basis, we determine if the difference, if any, is caused by expected credit losses and write-down the amortized cost basis of the securities if it is more likely than not we will be required or we intend to sell the securities before recovery of its amortized cost basis. Allowances for credit losses and write-downs are recognized in the Other income, net, net section of our Consolidated Statements of Income. Publicly-held equity securities and money market funds have readily determinable fair values with changes in fair value recorded in Other income, net.
Fair Value of Financial Instruments The carrying value of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to their relatively short maturities as of January 25, 2026 and January 26, 2025. Marketable debt and equity securities are reported at fair value. Derivative instruments are recognized as either assets or liabilities and are measured at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For derivative instruments designated as accounting hedges, the effective portion of the gains or losses on the derivatives is initially reported as a component of other comprehensive income or loss and is subsequently recognized in earnings when the hedged exposure is recognized in earnings. For derivative instruments not designated as accounting hedges, changes in fair value are recognized in earnings. Financial instruments measured and disclosed at fair value are classified and disclosed based on the observability of inputs used in the determination of fair value as follows: • Level 1: Observable inputs such as quoted prices in active markets. • Level 2: Observable inputs other than Level 1 prices, such as quoted prices in less active markets or model-derived valuations that are observable either directly or indirectly. 58
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• Level 3: Unobservable inputs in which there is little or no market data that are significant to the fair value of the assets or liabilities.
Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, marketable securities, lease guarantees, and accounts receivable. Our investment policy requires the purchase of highly-rated fixed income securities, the diversification of investment type and credit exposures, and includes certain limits on our portfolio maturities. We perform ongoing credit evaluations of our customers’ financial condition and maintain an allowance for potential credit losses. This allowance consists of an amount identified for specific customers and an amount based on overall estimated exposure. Our overall estimated exposure excludes amounts covered by credit insurance and letters of credit.
Inventories Inventory cost is computed on an adjusted standard basis, which approximates actual cost on an average or first-in, first-out basis. Inventory costs consist of the cost of semiconductors, including wafer fabrication, assembly, testing and packaging, manufacturing support costs, including labor and overhead associated with such purchases, final test yield fallout, and shipping costs, as well as the cost of purchased memory products and other component parts. We charge cost of sales for inventory provisions to write-down our inventory to the lower of cost or net realizable value or for obsolete or excess inventory, and for excess product purchase commitments. Most of our inventory provisions relate to excess quantities of products, based on our inventory levels and future product purchase commitments compared to assumptions about future demand including the impact of regulatory export restrictions on our products. Once inventory has been written-off or written-down, it creates a new cost basis for the inventory that is not subsequently written-up. We record a liability for noncancelable purchase commitments with suppliers for quantities in excess of our future demand forecasts consistent with our valuation of obsolete or excess inventory.
Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is computed using the straight-line method based on the estimated useful lives of the assets of two to seven years. Once an asset is identified for retirement or disposition, the related cost and accumulated depreciation or amortization are removed, and a gain or loss is recorded. The estimated useful lives of our buildings are up to thirty years. Depreciation expense includes the amortization of assets recorded under finance leases. Leasehold improvements and assets recorded under finance leases are amortized over the shorter of the expected lease term or the estimated useful life of the asset.
Leases We determine if an arrangement is or contains a lease at inception. Operating leases with lease terms of more than 12 months are included in operating lease assets, accrued and other current liabilities, and long-term operating lease liabilities on our consolidated balance sheet. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments over the lease term. We combine lease and non-lease components for offices and data centers in determining the operating lease assets and liabilities. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using our incremental borrowing rate. Operating lease assets also include initial direct costs incurred and prepaid lease payments, minus any lease incentives. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease costs are recognized on a straight-line basis over the lease term.
Goodwill We allocate goodwill to reporting units based on the expected benefit from the business combination. Goodwill is subject to our annual impairment test during the fourth quarter of our fiscal year, or earlier if indicators of potential impairment exist. In completing our impairment test, we perform either a qualitative or a quantitative analysis on a reporting unit basis.
Qualitative factors include industry and market considerations, overall financial performance, and other relevant events and factors affecting the reporting units. Goodwill impairments were not identified for the periods presented.
Intangible Assets and Other Long-Lived Assets Intangible assets primarily represent acquired intangible assets including developed technology and customer relationships, as well as rights acquired under technology licenses, patents, and acquired IP. We currently amortize our intangible assets with finite lives over periods ranging from one to twenty years using a method that reflects the pattern 59
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in which the economic benefits of the intangible asset are consumed or otherwise used up or, if that pattern cannot be reliably determined, using a straight-line amortization method. Long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The recoverability of assets or asset groups to be held and used is measured by a comparison of the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset or asset group exceeds the estimated fair value of the asset or asset group. Fair value is determined based on the estimated discounted future cash flows expected to be generated by the asset or asset group. Assets and liabilities to be disposed of would be separately presented in the Consolidated Balance Sheet and the assets would be reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated.
Business Combination The Company applies a screen test to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets to determine whether a transaction is accounted for as an asset acquisition or business combination. We allocate the fair value of the purchase price of an acquisition to the tangible assets acquired, liabilities assumed, and intangible assets acquired, based on their estimated fair values. The excess of the fair value of the purchase price over the fair values of these net tangible and intangible assets acquired is recorded as goodwill. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but our estimates and assumptions are inherently uncertain and subject to refinement. The estimates and assumptions used in valuing intangible assets include, but are not limited to, the amount and timing of projected future cash flows, discount rate used to determine the present value of these cash flows and asset lives. These estimates are inherently uncertain and, therefore, actual results may differ from the estimates made. As a result, during the measurement period of up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the measurement period's conclusion or final determination of the fair value of the purchase price of an acquisition, whichever comes first, any subsequent adjustments are recorded to our Consolidated Statements of Income. Acquisition-related expenses are recognized separately from the business combination and expensed as incurred.
Non-Marketable Equity Securities Non-marketable equity securities consist of investments in privately-held companies that do not have a readily determinable fair value. These investments are measured at cost minus impairment, if any, and are adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer, or the measurement alternative. Fair value is based upon observable inputs in an inactive market and the valuation requires our judgment due to the absence of market prices and inherent lack of liquidity. All gains and losses on these investments, realized and unrealized, are recognized in Other income, net on our Consolidated Statements of Income. We assess whether an impairment loss has occurred on our investments in non-marketable equity securities, accounted for under the measurement alternative based on quantitative and qualitative factors. If any impairment is identified for non-marketable equity securities, we write down the investment to its fair value and record the corresponding charge through Other income, net on our Consolidated Statements of Income. The Company assesses its investments for significant influence to determine the appropriate method of accounting, including application of the equity method. Equity method investments were not material.
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. 60
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Note 2 - Groq In December 2025, we entered into a non‑exclusive license agreement with Groq, Inc., or Groq, for its language processing unit technology and hired certain Groq employees. No customer contracts, existing products, or equity interests were purchased. We recorded $14.4 billion of goodwill and a $2.5 billion developed technology intangible asset, valued using a cost‑to‑recreate methodology with a five‑year useful life. Goodwill, primarily attributable to the workforce and future development of the licensed technology, was recorded in the Compute & Networking reporting unit. Total consideration consists of $13.0 billion paid at closing and $4 billion, inclusive of imputed interest, payable within one year included in Accrued and Other Current Liabilities on our Consolidated Balance Sheets. The goodwill is tax deductible. Pro forma results of operations have not been presented because the effect was not material.
Note 3 - 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. Consolidated Statements of Income include stock-based compensation expense as follows:
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Cost of revenue ......................... Cost of revenue / Cost of revenue / $ / 261 / $ / 178 / $ / 141
Research and development ................ Research and development / Research and development / 4,676 / 4,676 / 3,423 / 3,423 / 2,532 / 2,532
Sales, general and administrative ....... Sales, general and administrative / Sales, general and administrative / 1,449 / 1,449 / 1,136 / 1,136 / 876 / 876
Total ................................... Total / Total / $ / 6,386 / $ / 4,737 / $ / 3,549
The following is a summary of equity awards granted under our equity incentive plans:
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
(In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data)
RSUs, PSUs and Market-based PSUs ........ RSUs, PSUs and Market-based PSUs / RSUs, PSUs and Market-based PSUs
Awards granted .......................... Awards granted / Awards granted / 70 / 70 / 89 / 89 / 140 / 140
Estimated total grant-date fair value ... Estimated total grant-date fair value / Estimated total grant-date fair value / $ / 9,389 / $ / 7,834 / $ / 5,316
Weighted average grant-date fair value per share ... Weighted average grant-date fair value per share / Weighted average grant-date fair value per share / $ / 133.97 / $ / 87.99 / $ / 37.41
ESPP .................................... ESPP / ESPP
Shares purchased ........................ Shares purchased / Shares purchased / 13 / 13 / 30 / 30 / 30 / 30
Weighted average price per share ........ Weighted average price per share / Weighted average price per share / $ / 49.13 / $ / 17.74 / $ / 15.81
Weighted average grant-date fair value per share ... Weighted average grant-date fair value per share / Weighted average grant-date fair value per share / $ / 20.75 / $ / 8.61 / $ / 6.99
As of January 25, 2026, aggregate unearned stock-based compensation expense was $14.8 billion, which is expected to be recognized over a weighted average period of 2.3 years for RSUs, PSUs, and market-based PSUs, and 0.9 years for ESPP. 61
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The fair value of shares issued under our ESPP has been estimated with the following assumptions:
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
(Using the Black-Scholes model) / (Using the Black-Scholes model) / (Using the Black-Scholes model) / (Using the Black-Scholes model) / (Using the Black-Scholes model) / (Using the Black-Scholes model) / (Using the Black-Scholes model) / (Using the Black-Scholes model) / (Using the Black-Scholes model) / (Using the Black-Scholes model) / (Using the Black-Scholes model) / (Using the Black-Scholes model) / (Using the Black-Scholes model) / (Using the Black-Scholes model) / (Using the Black-Scholes model)
ESPP .................................... ESPP / ESPP
Weighted average expected life (in years) ... Weighted average expected life (in years) / Weighted average expected life (in years) / 0.1-2.0 / 0.1-2.0 / 0.1-2.0 / 0.1-2.0 / 0.1-2.0 / 0.1-2.0 / 0.1-2.0 / 0.1-2.0 / 0.1-2.0
Risk-free interest rate ................. Risk-free interest rate / Risk-free interest rate / 3.5%-4.3% / 3.5%-4.3% / 3.5%-4.3% / 3.6%-5.4% / 3.6%-5.4% / 3.6%-5.4% / 3.9%-5.5% / 3.9%-5.5% / 3.9%-5.5%
Volatility .............................. Volatility / Volatility / 26%-96% / 26%-96% / 26%-96% / 31%-75% / 31%-75% / 31%-75% / 31%-67% / 31%-67% / 31%-67%
Dividend yield .......................... Dividend yield / Dividend yield / 0.03% / 0.03% / 0.03% / 0.03% / 0.03% / 0.03% / 0.06% / 0.06% / 0.06%
For ESPP shares, the expected term represents the average term from the first day of the offering period to the purchase date. The risk-free interest rate assumption used to value ESPP shares is based upon observed interest rates on Treasury bills appropriate for the expected term. Our expected stock price volatility assumption for ESPP is estimated using historical volatility. For awards granted, we use the dividend yield at grant date. Our RSUs, PSUs, and market-based PSUs are not eligible for cash dividends prior to vesting; therefore, the fair values of RSUs, PSUs, and market-based PSUs are discounted for the dividend yield. Additionally, for RSUs, PSUs, and market-based PSUs, we estimate expected forfeitures based on our historical forfeitures. Equity Incentive Program We grant RSUs, PSUs, market-based PSUs, and stock purchase rights under the following equity incentive plans. In addition, in connection with our acquisitions of various companies, we have assumed certain stock-based awards granted under their stock incentive plans and converted them into our RSUs. Amended and Restated 2007 Equity Incentive Plan The NVIDIA Corporation Amended and Restated 2007 Equity Incentive Plan, or the 2007 Plan, authorizes the issuance of incentive stock options, non-statutory stock options, restricted stock, RSUs, stock appreciation rights, performance stock awards, performance cash awards, and other stock-based awards to employees, directors and consultants. Only our employees may receive incentive stock options. We grant RSUs, PSUs and market-based PSUs under the 2007 Plan. As of January 25, 2026, up to 192 million shares of our common stock could be issued pursuant to stock awards granted under the 2007 Plan, and 1.3 billion shares were available for future grants. Subject to certain exceptions, RSUs vest generally over four years subject to continued service. PSUs vest over four years, subject to continued service and performance conditions. Market-based PSUs vest on approximately the third anniversary of the date of grant subject to market conditions. However, the number of shares subject to both PSUs and market-based PSUs that are eligible to vest is determined by the Compensation Committee based on achievement of pre-determined criteria. Amended and Restated 2012 Employee Stock Purchase Plan Employees who participate in the NVIDIA Corporation Amended and Restated 2012 Employee Stock Purchase Plan, or as most recently amended and restated, the 2012 Plan, may have up to 25% of their earnings withheld to purchase shares of common stock. The Board may decrease this percentage at its discretion. Each offering period is about 24 months, divided into four purchase periods of six months. The price of common stock purchased under our 2012 Plan will be equal to 85% of the lower of the fair market value of the common stock on the commencement date of each offering period or the fair market value of the common stock on each purchase date within the offering. As of January 25, 2026, we had 2.2 billion shares reserved for future issuance under the 2012 Plan. 62
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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
RSUs, PSUs and Market-based PSUs Outstanding / RSUs, PSUs and Market-based PSUs Outstanding / RSUs, PSUs and Market-based PSUs Outstanding / RSUs, PSUs and Market-based PSUs Outstanding / RSUs, PSUs and Market-based PSUs Outstanding / RSUs, PSUs and Market-based PSUs Outstanding / RSUs, PSUs and Market-based PSUs Outstanding / RSUs, PSUs and Market-based PSUs Outstanding
Number of Shares / Number of Shares / Number of Shares / Weighted Average Grant-Date Fair Value Per Share / Weighted Average Grant-Date Fair Value Per Share / Weighted Average Grant-Date Fair Value Per Share
(In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data)
Balance as of Jan 26, 2025 .............. Balance as of Jan 26, 2025 / Balance as of Jan 26, 2025 / 274 / 274 / $ / 44.75
Granted ................................. Granted / Granted / 70 / 70 / $ / 133.97
Vested .................................. Vested / Vested / (146) / (146) / $ / 39.14
Canceled and forfeited .................. Canceled and forfeited / Canceled and forfeited / (9) / (9) / $ / 59.29
Balance as of Jan 25, 2026 .............. Balance as of Jan 25, 2026 / Balance as of Jan 25, 2026 / 189 / 189 / $ / 81.51
Vested and expected to vest after Jan 25, 2026 ... Vested and expected to vest after Jan 25, 2026 / Vested and expected to vest after Jan 25, 2026 / 188 / 188 / $ / 81.15
As of January 25, 2026 and January 26, 2025, there were 1.3 billion and 1.4 billion shares, respectively, of common stock available for future grants under our equity incentive plans. The total fair value of RSUs and PSUs, as of their respective vesting dates, during the years ended January 25, 2026, January 26, 2025, and January 28, 2024, was $22.2 billion, $15.1 billion, and $8.2 billion, respectively.
Note 4 - Net Income Per Share The following is the basic and diluted net income per share computations for the periods presented:
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
(In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data) / (In millions, except per share data)
Numerator: .............................. Numerator: / Numerator:
Net income .............................. Net income / Net income / $ / 120,067 / $ / 72,880 / $ / 29,760
Denominator: ............................ Denominator: / Denominator:
Basic weighted average shares ........... Basic weighted average shares / Basic weighted average shares / 24,359 / 24,359 / 24,555 / 24,555 / 24,690 / 24,690
Dilutive impact of outstanding equity awards ... Dilutive impact of outstanding equity awards / Dilutive impact of outstanding equity awards / 155 / 155 / 249 / 249 / 250 / 250
Diluted weighted average shares ......... Diluted weighted average shares / Diluted weighted average shares / 24,514 / 24,514 / 24,804 / 24,804 / 24,940 / 24,940
Net income per share: ................... Net income per share: / Net income per share:
Basic (1) ............................... Basic (1) / Basic (1) / $ / 4.93 / $ / 2.97 / $ / 1.21
Diluted (2) ............................. Diluted (2) / Diluted (2) / $ / 4.90 / $ / 2.94 / $ / 1.19
Anti-dilutive equity awards excluded from diluted net income per share ... Anti-dilutive equity awards excluded from diluted net income per share / Anti-dilutive equity awards excluded from diluted net income per share / 41 / 41 / 51 / 51 / 150 / 150
(1) Net income divided by basic weighted average shares. (2) Net income divided by diluted weighted average shares.
Note 5 - Goodwill As of January 25, 2026, the total carrying amount of goodwill was $20.8 billion, consisting of goodwill balances allocated to our Compute & Networking and Graphics reporting units of $20.5 billion and $370 million, respectively. As of January 26, 2025, the total carrying amount of goodwill was $5.2 billion, consisting of goodwill balances allocated to our Compute & Networking and Graphics reporting units of $4.8 billion and $370 million, respectively. Goodwill increased by $15.6 billion in fiscal year 2026 and was allocated to our Compute & Networking reporting unit. During the fourth quarters of fiscal years 2026, 2025, and 2024, we completed our annual qualitative impairment tests and concluded that goodwill was not impaired. 63
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Note 6 - Amortizable Intangible Assets The components of our amortizable intangible assets are as follows:
Jan 25, 2026
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025
Gross CarryingAmount / Gross CarryingAmount / Gross CarryingAmount / AccumulatedAmortization / AccumulatedAmortization / AccumulatedAmortization / Net CarryingAmount / Net CarryingAmount / Net CarryingAmount / Gross CarryingAmount / Gross CarryingAmount / Gross CarryingAmount / AccumulatedAmortization / AccumulatedAmortization / AccumulatedAmortization / Net CarryingAmount / Net CarryingAmount / Net CarryingAmount
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Acquisition-related intangible assets ... Acquisition-related intangible assets / Acquisition-related intangible assets / $ / 5,656 / $ / (2,580) / $ / 3,076 / $ / 2,900 / $ / (2,264) / $ / 636
Patents and licensed technology ......... Patents and licensed technology / Patents and licensed technology / 528 / 528 / (298) / (298) / 230 / 230 / 449 / 449 / (278) / (278) / 171 / 171
Total intangible assets ................. Total intangible assets / Total intangible assets / $ / 6,184 / $ / (2,878) / $ / 3,306 / $ / 3,349 / $ / (2,542) / $ / 807
Amortization expense associated with intangible assets for fiscal years 2026, 2025, and 2024 was $488 million, $593 million, and $614 million, respectively. The following table outlines the estimated future amortization expense related to the net carrying amount of intangible assets as of January 25, 2026:
| Future Amortization Expense | Future Amortization Expense | Future Amortization Expense | |||
| (In millions) | (In millions) | (In millions) | |||
| Fiscal Year: | Fiscal Year: | Fiscal Year: | |||
| 2027 | 2027 | 2027 | $ | 923 | |
| 2028 | 2028 | 2028 | 729 | 729 | |
| 2029 | 2029 | 2029 | 592 | 592 | |
| 2030 | 2030 | 2030 | 511 | 511 | |
| 2031 | 2031 | 2031 | 468 | 468 | |
| 2032 and thereafter | 2032 and thereafter | 2032 and thereafter | 83 | 83 | |
| Total | Total | Total | $ | 3,306 |
64
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Note 7 - Cash Equivalents and Marketable Securities The fair values of our financial assets are determined using quoted market prices of identical assets or market prices of similar assets from active markets. We review fair value classification on a quarterly basis. The following is a summary of cash equivalents and marketable securities:
Jan 25, 2026
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026
Pricing Category / Pricing Category / Pricing Category / Cost or Amortized Cost / Cost or Amortized Cost / Cost or Amortized Cost / UnrealizedGain / UnrealizedGain / UnrealizedGain / UnrealizedLoss / UnrealizedLoss / UnrealizedLoss / EstimatedFair Value / EstimatedFair Value / EstimatedFair Value / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as
Pricing Category / Cost or Amortized Cost / UnrealizedGain / UnrealizedLoss / EstimatedFair Value / Cash Equivalents / Cash Equivalents / Cash Equivalents / Marketable Securities / Marketable Securities / Marketable Securities / Other Assets / Other Assets / Other Assets
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Debt securities issued by the U.S. Treasury ... Debt securities issued by the U.S. Treasury / Debt securities issued by the U.S. Treasury / Level 2 / Level 2 / Level 2 / $ / 21,635 / $ / 77 / $ / (3) / $ / 21,709 / $ / — / $ / 21,709 / $ / —
Corporate debt securities ............... Corporate debt securities / Corporate debt securities / Level 2 / Level 2 / Level 2 / 15,410 / 15,410 / 92 / 92 / (3) / (3) / 15,499 / 15,499 / 345 / 345 / 15,154 / 15,154 / — / —
Debt securities issued by U.S. government agencies ... Debt securities issued by U.S. government agencies / Debt securities issued by U.S. government agencies / Level 2 / Level 2 / Level 2 / 2,157 / 2,157 / 4 / 4 / — / — / 2,161 / 2,161 / — / — / 2,161 / 2,161 / — / —
Certificates of deposit ................. Certificates of deposit / Certificates of deposit / Level 2 / Level 2 / Level 2 / 110 / 110 / — / — / — / — / 110 / 110 / 110 / 110 / — / — / — / —
Foreign government bonds ................ Foreign government bonds / Foreign government bonds / Level 2 / Level 2 / Level 2 / 40 / 40 / 1 / 1 / — / — / 41 / 41 / — / — / 41 / 41 / — / —
Money market funds ...................... Money market funds / Money market funds / Level 1 / Level 1 / Level 1 / 7,830 / 7,830 / — / — / — / — / 7,830 / 7,830 / 7,830 / 7,830 / — / — / — / —
Publicly-held equity securities (1) (2) ... Publicly-held equity securities (1) (2) / Publicly-held equity securities (1) (2) / Level 1 / Level 1 / Level 1 / 17,726 / 17,726 / — / — / 12,886 / 12,886 / 4,840 / 4,840
Total ................................... Total / Total / $ / 47,182 / $ / 174 / $ / (6) / $ / 65,076 / $ / 8,285 / $ / 51,951 / $ / 4,840
(1) In the first quarter of fiscal year 2026, one investment was reclassified from non-marketable equity securities to marketable securities following public market trading. The balance as of January 25, 2026 includes $10.5 billion of investments which are subject to short-term lock-up restrictions on the ability to sell. (2) The long-term portion of marketable equity securities, which are subject to lock-up restrictions through December 2027 of $4.8 billion as of January 25, 2026, is included in other assets. 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 $6.6 billion for fiscal year 2026. Net unrealized gains on investments in publicly-held equity securities held at period end were not significant for fiscal years 2025 and 2024. Net realized gains on investments in publicly-held equity securities sold were not significant for fiscal years 2026, 2025, and 2024, reflecting the difference between the sale proceeds and the carrying value of the equity securities at the beginning of the period or the purchase date, if later. 65
Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued)
Jan 26, 2025
Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025
Pricing Category / Pricing Category / Pricing Category / Cost or AmortizedCost / Cost or AmortizedCost / Cost or AmortizedCost / UnrealizedGain / UnrealizedGain / UnrealizedGain / UnrealizedLoss / UnrealizedLoss / UnrealizedLoss / EstimatedFair Value / EstimatedFair Value / EstimatedFair Value / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as / Reported as
Pricing Category / Cost or AmortizedCost / UnrealizedGain / UnrealizedLoss / EstimatedFair Value / Cash Equivalents / Cash Equivalents / Cash Equivalents / Marketable Securities / Marketable Securities / Marketable Securities
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Corporate debt securities ............... Corporate debt securities / Corporate debt securities / Level 2 / Level 2 / Level 2 / $ / 18,504 / $ / 51 / $ / (29) / $ / 18,526 / $ / 2,071 / $ / 16,455
Debt securities issued by the U.S. Treasury ... Debt securities issued by the U.S. Treasury / Debt securities issued by the U.S. Treasury / Level 2 / Level 2 / Level 2 / 16,749 / 16,749 / 42 / 42 / (22) / (22) / 16,769 / 16,769 / 1,801 / 1,801 / 14,968 / 14,968
Debt securities issued by U.S. government agencies ... Debt securities issued by U.S. government agencies / Debt securities issued by U.S. government agencies / Level 2 / Level 2 / Level 2 / 2,775 / 2,775 / 7 / 7 / (5) / (5) / 2,777 / 2,777 / — / — / 2,777 / 2,777
Foreign government bonds ................ Foreign government bonds / Foreign government bonds / Level 2 / Level 2 / Level 2 / 177 / 177 / — / — / — / — / 177 / 177 / 137 / 137 / 40 / 40
Certificates of deposit ................. Certificates of deposit / Certificates of deposit / Level 2 / Level 2 / Level 2 / 97 / 97 / — / — / — / — / 97 / 97 / 97 / 97 / — / —
Money market funds ...................... Money market funds / Money market funds / Level 1 / Level 1 / Level 1 / 3,760 / 3,760 / — / — / — / — / 3,760 / 3,760 / 3,760 / 3,760 / — / —
Publicly-held equity securities ......... Publicly-held equity securities / Publicly-held equity securities / Level 1 / Level 1 / Level 1 / 381 / 381 / — / — / 381 / 381
Total ................................... Total / Total / $ / 42,062 / $ / 100 / $ / (56) / $ / 42,487 / $ / 7,866 / $ / 34,621
The following tables provide the breakdown of unrealized losses, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position:
Jan 25, 2026
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025
Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months / Less than 12 Months
Estimated Fair Value / Estimated Fair Value / Estimated Fair Value / Gross Unrealized Loss / Gross Unrealized Loss / Gross Unrealized Loss / Estimated Fair Value / Estimated Fair Value / Estimated Fair Value / Gross Unrealized Loss / Gross Unrealized Loss / Gross Unrealized Loss
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Debt securities issued by the U.S. Treasury ... Debt securities issued by the U.S. Treasury / Debt securities issued by the U.S. Treasury / $ / 10,666 / $ / (3) / $ / 6,315 / $ / (22)
Corporate debt securities ............... Corporate debt securities / Corporate debt securities / 1,332 / 1,332 / (3) / (3) / 5,291 / 5,291 / (29) / (29)
Debt securities issued by U.S. government agencies ... Debt securities issued by U.S. government agencies / Debt securities issued by U.S. government agencies / 1,134 / 1,134 / — / — / 816 / 816 / (5) / (5)
Total ................................... Total / Total / $ / 13,132 / $ / (6) / $ / 12,422 / $ / (56)
Gross unrealized losses related to debt securities in a continuous loss position of twelve months or greater as of January 25, 2026 and January 26, 2025 were not significant. Gross unrealized losses are related to fixed income securities, driven primarily by changes in interest rates. The estimated fair value of debt securities included in cash equivalents and marketable securities are shown below by contractual maturity.
| Jan 25, 2026 | Jan 25, 2026 | Jan 25, 2026 | |||
| (In millions) | (In millions) | (In millions) | |||
| Less than one year | Less than one year | Less than one year | $ | 20,427 | |
| Due in 1 - 5 years | Due in 1 - 5 years | Due in 1 - 5 years | 19,093 | 19,093 | |
| Total | Total | Total | $ | 39,520 |
Note 8 - Non-marketable Equity Securities
Our non-marketable equity securities are valued under the measurement alternative applying valuation methods based on observable transactions for similar investments of the same issuer and unobservable inputs such as volatility, expected 66
Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued)
time to liquidity, risk free rate and security-specific rights and obligations. Gains and losses on these investments, realized and unrealized, are recognized in Other income, net on our Consolidated Statements of Income. Adjustments to the carrying value of our non-marketable equity securities during fiscal years 2026 and 2025 were as follows:
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Balance at beginning of period .......... Balance at beginning of period / Balance at beginning of period / $ / 3,387 / $ / 1,321
Adjustments related to non-marketable equity securities: ... Adjustments related to non-marketable equity securities: / Adjustments related to non-marketable equity securities:
Net additions ........................... Net additions / Net additions / 17,444 / 17,444 / 1,309 / 1,309
Unrealized gains ........................ Unrealized gains / Unrealized gains / 2,369 / 2,369 / 816 / 816
Reclassification (1) .................... Reclassification (1) / Reclassification (1) / (848) / (848) / — / —
Impairments and unrealized losses ....... Impairments and unrealized losses / Impairments and unrealized losses / (101) / (101) / (59) / (59)
Balance at end of period ................ Balance at end of period / Balance at end of period / $ / 22,251 / $ / 3,387
(1) Represents reclassifications from non-marketable equity securities to marketable securities following public market trading. Non-marketable equity securities had cumulative gross unrealized gains of $2.7 billion and $1.1 billion, and cumulative gross unrealized losses and impairments of $176 million and $105 million on securities held as of January 25, 2026 and January 26, 2025, respectively.
Note 9 - Balance Sheet Components
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. Three direct customers accounted for 25%, 18%, and 13% of our accounts receivable balance as of January 25, 2026. Two direct customers accounted for 17% and 16% of our accounts receivable balance as of January 26, 2025.
Certain balance sheet components are as follows:
Jan 25, 2026
Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025
Inventories: ............................ Inventories: / Inventories: / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Raw materials ........................... Raw materials / Raw materials / $ / 3,807 / $ / 3,408
Work in process ......................... Work in process / Work in process / 8,822 / 8,822 / 3,399 / 3,399
Finished goods .......................... Finished goods / Finished goods / 8,774 / 8,774 / 3,273 / 3,273
Total inventories (1) ................... Total inventories (1) / Total inventories (1) / $ / 21,403 / $ / 10,080
(1) In fiscal years 2026 and 2025, we recorded inventory provisions of $4.0 billion and $1.6 billion, respectively, in cost of revenue.
Jan 25, 2026
Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / EstimatedUseful Life / EstimatedUseful Life / EstimatedUseful Life
Property and Equipment: ................. Property and Equipment: / Property and Equipment: / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In years) / (In years) / (In years)
Land .................................... Land / Land / $ / 777 / $ / 511 / (A) / (A) / (A)
Buildings, leasehold improvements, and furniture ... Buildings, leasehold improvements, and furniture / Buildings, leasehold improvements, and furniture / 2,891 / 2,891 / 2,076 / 2,076 / (B) / (B) / (B)
Equipment, compute hardware, and software ... Equipment, compute hardware, and software / Equipment, compute hardware, and software / 12,619 / 12,619 / 7,568 / 7,568 / 2-7 / 2-7 / 2-7
Construction in process ................. Construction in process / Construction in process / 683 / 683 / 529 / 529 / (C) / (C) / (C)
Total property and equipment, gross ..... Total property and equipment, gross / Total property and equipment, gross / 16,970 / 16,970 / 10,684 / 10,684
Accumulated depreciation and amortization ... Accumulated depreciation and amortization / Accumulated depreciation and amortization / (6,587) / (6,587) / (4,401) / (4,401)
Total property and equipment, net ....... Total property and equipment, net / Total property and equipment, net / $ / 10,383 / $ / 6,283
(A) Land is a non-depreciable asset. 67
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(B) The estimated useful lives of our buildings are up to thirty years. Leasehold improvements and finance leases are amortized based on the lesser of either the asset’s estimated useful life or the expected remaining lease term. (C) Construction in process represents assets that are not available for their intended use. Depreciation expense for fiscal years 2026, 2025, and 2024 was $2.4 billion, $1.3 billion, and $894 million, respectively. Accumulated amortization of leasehold improvements and finance leases was $519 million and $410 million as of January 25, 2026 and January 26, 2025, respectively.
Property, equipment and intangible assets acquired but not paid for during fiscal years 2026, 2025, and 2024 were $820 million, $525 million, and $170 million, respectively.
Jan 25, 2026
Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025
Accrued and Other Current Liabilities: ... Accrued and Other Current Liabilities: / Accrued and Other Current Liabilities: / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Customer program accruals ............... Customer program accruals / Customer program accruals / $ / 5,318 / $ / 4,880
Accrued purchase consideration .......... Accrued purchase consideration / Accrued purchase consideration / 3,921 / 3,921 / 9 / 9
Product warranty ........................ Product warranty / Product warranty / 2,807 / 2,807 / 1,290 / 1,290
Excess inventory purchase obligations (1) ... Excess inventory purchase obligations (1) / Excess inventory purchase obligations (1) / 2,739 / 2,739 / 2,095 / 2,095
Taxes payable ........................... Taxes payable / Taxes payable / 2,669 / 2,669 / 881 / 881
Deferred revenue (2) .................... Deferred revenue (2) / Deferred revenue (2) / 1,379 / 1,379 / 837 / 837
Accrued payroll and related expenses .... Accrued payroll and related expenses / Accrued payroll and related expenses / 1,146 / 1,146 / 848 / 848
Other ................................... Other / Other / 1,373 / 1,373 / 897 / 897
Total accrued and other current liabilities ... Total accrued and other current liabilities / Total accrued and other current liabilities / $ / 21,352 / $ / 11,737
(1) In fiscal years 2026 and 2025, we recorded an expense of approximately $3.2 billion and $2.0 billion, respectively, in cost of revenue.
(2) Includes customer advances and unearned revenue related to hardware and software support, cloud services, and license and development arrangements. The balance as of January 25, 2026 and January 26, 2025 included $160 million and $81 million of customer advances, respectively.
Jan 25, 2026
Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025
Other Long-Term Liabilities: ............ Other Long-Term Liabilities: / Other Long-Term Liabilities: / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Income tax payable (1) .................. Income tax payable (1) / Income tax payable (1) / $ / 3,958 / $ / 2,188
Deferred income tax ..................... Deferred income tax / Deferred income tax / 1,774 / 1,774 / 886 / 886
Deferred revenue (2) .................... Deferred revenue (2) / Deferred revenue (2) / 1,193 / 1,193 / 976 / 976
Other ................................... Other / Other / 381 / 381 / 195 / 195
Total other long-term liabilities ....... Total other long-term liabilities / Total other long-term liabilities / $ / 7,306 / $ / 4,245
(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 fiscal years 2026 and 2025:
Jan 25, 2026
Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Balance at beginning of period .......... Balance at beginning of period / Balance at beginning of period / $ / 1,813 / $ / 1,337
Deferred revenue additions (1) .......... Deferred revenue additions (1) / Deferred revenue additions (1) / 11,137 / 11,137 / 5,083 / 5,083
Revenue recognized (2) .................. Revenue recognized (2) / Revenue recognized (2) / (10,378) / (10,378) / (4,607) / (4,607)
Balance at end of period ................ Balance at end of period / Balance at end of period / $ / 2,572 / $ / 1,813
(1) Includes $9.0 billion and $3.6 billion of customer advances for fiscal years 2026 and 2025, respectively. (2) Includes $8.9 billion and $3.7 billion related to customer advances for fiscal years 2026 and 2025, respectively. 68
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We recognized revenue of $974 million and $729 million in fiscal years 2026 and 2025, respectively, that were included in the prior year end deferred revenue balance. As of January 25, 2026, revenue related to remaining performance obligations from contracts greater than one year in length was $2.3 billion, which includes $1.9 billion from deferred revenue and $390 million which has not yet been billed nor recognized as revenue. Approximately 42% of revenue from contracts greater than one year in length will be recognized over the next twelve months.
Note 10 - Derivative Financial Instruments
Foreign Currency Derivatives We utilize foreign currency forward contracts to mitigate the impact of foreign currency exchange rate movements on our operating expenses. The 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 expense when the related operating expenses are recognized in earnings. In fiscal years 2026 and 2025, 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 mitigating 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 or expense. The table below presents the notional value of our foreign currency contracts outstanding:
Jan 25, 2026
Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Designated as accounting hedges ......... Designated as accounting hedges / Designated as accounting hedges / $ / 1,765 / $ / 1,424
Not designated as accounting hedges ..... Not designated as accounting hedges / Not designated as accounting hedges / $ / 2,332 / $ / 1,297
The unrealized gains and losses or fair value of our foreign currency contracts were not significant as of January 25, 2026 and January 26, 2025. As of January 25, 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 Guarantees 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 and expense, were not material. 69
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Note 11 - Debt
ExpectedRemaining Term (years)
ExpectedRemaining Term (years) / ExpectedRemaining Term (years) / EffectiveInterest Rate / EffectiveInterest Rate / EffectiveInterest Rate / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
3.20% Notes Due 2026 .................... 3.20% Notes Due 2026 / 3.20% Notes Due 2026 / 0.6 / 0.6 / 0.6 / 3.31% / 3.31% / 3.31% / 1,000 / 1,000 / 1,000 / 1,000
1.55% Notes Due 2028 .................... 1.55% Notes Due 2028 / 1.55% Notes Due 2028 / 2.4 / 2.4 / 2.4 / 1.64% / 1.64% / 1.64% / 1,250 / 1,250 / 1,250 / 1,250
2.85% Notes Due 2030 .................... 2.85% Notes Due 2030 / 2.85% Notes Due 2030 / 4.2 / 4.2 / 4.2 / 2.93% / 2.93% / 2.93% / 1,500 / 1,500 / 1,500 / 1,500
2.00% Notes Due 2031 .................... 2.00% Notes Due 2031 / 2.00% Notes Due 2031 / 5.4 / 5.4 / 5.4 / 2.09% / 2.09% / 2.09% / 1,250 / 1,250 / 1,250 / 1,250
3.50% Notes Due 2040 .................... 3.50% Notes Due 2040 / 3.50% Notes Due 2040 / 14.2 / 14.2 / 14.2 / 3.54% / 3.54% / 3.54% / 1,000 / 1,000 / 1,000 / 1,000
3.50% Notes Due 2050 .................... 3.50% Notes Due 2050 / 3.50% Notes Due 2050 / 24.2 / 24.2 / 24.2 / 3.54% / 3.54% / 3.54% / 2,000 / 2,000 / 2,000 / 2,000
3.70% Notes Due 2060 .................... 3.70% Notes Due 2060 / 3.70% Notes Due 2060 / 34.2 / 34.2 / 34.2 / 3.73% / 3.73% / 3.73% / 500 / 500 / 500 / 500
Unamortized debt discount and issuance costs ... Unamortized debt discount and issuance costs / Unamortized debt discount and issuance costs / (32) / (32) / (37) / (37)
Net carrying amount ..................... Net carrying amount / Net carrying amount / 8,468 / 8,468 / 8,463 / 8,463
Less short-term portion ................. Less short-term portion / Less short-term portion / (999) / (999) / — / —
Total long-term portion ................. Total long-term portion / Total long-term portion / $ / 7,469 / $ / 8,463
As of January 25, 2026 and January 26, 2025, the estimated fair value of debt was $7.5 billion and $7.2 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 of the notes is calendar year. As of January 25, 2026, we complied with the required covenants, which are non-financial in nature, under the outstanding notes. In January 2026, we increased the size of our commercial paper program from $575 million to $25.0 billion. As of January 25, 2026, no commercial paper was outstanding.
Note 12 - Commitments and Contingencies
Commitments Manufacturing, supply, and capacity commitments reflect datacenter-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 January 25, 2026, these commitments were $95.2 billion, of which substantially all will be paid through fiscal year 2027.
Multi-year cloud service agreement commitments as of January 25, 2026, were $27 billion, for which $7 billion, $6 billion, $5 billion, $5 billion, $2 billion, and $2 billion will be paid in fiscal years 2027, 2028, 2029, 2030, 2031, and 2032 and thereafter, respectively. Some cloud service capacity may be reduced, terminated or sold to others by the CSPs, in which case our commitments will be reduced. We expect cloud service agreements to be used to support our research and development efforts.
Investment commitments are $11.4 billion as of January 25, 2026, subject to certain contingencies, of which we expect substantially all will be made through fiscal year 2027.
Other commitments were $3.4 billion as of January 25, 2026, of which the majority will be paid through fiscal year 2027. 70
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Accrual for Product Warranty Liabilities The estimated amount of product warranty liabilities was $2.8 billion and $1.3 billion as of January 25, 2026 and January 26, 2025, respectively. The estimated product returns and product warranty activity consisted of the following:
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Balance at beginning of period .......... Balance at beginning of period / Balance at beginning of period / $ / 1,290 / $ / 306 / $ / 82
Additions ............................... Additions / Additions / 2,474 / 2,474 / 1,203 / 1,203 / 278 / 278
Utilization ............................. Utilization / Utilization / (957) / (957) / (219) / (219) / (54) / (54)
Balance at end of period ................ Balance at end of period / Balance at end of period / $ / 2,807 / $ / 1,290 / $ / 306
In fiscal years 2026, 2025, and 2024 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 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. On November 15, 2023, the Ninth Circuit denied NVIDIA’s petition for rehearing en banc of the Ninth Circuit panel’s majority decision to reverse in part the dismissal of the case, which NVIDIA had filed on October 10, 2023. On December 5, 2023, the Ninth Circuit granted NVIDIA’s motion to stay the mandate pending NVIDIA’s petition for a writ of certiorari in the Supreme Court of the United States and the Supreme Court’s final disposition of the matter. 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. 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-cv-01798-MN), were stayed pending resolution of the plaintiffs’ appeal in the In Re NVIDIA Corporation Securities 71
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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 January 25, 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 13 - Income Taxes The FASB issued a new accounting standard which includes new and updated income tax disclosures, including disaggregation of information in the rate reconciliation and income taxes paid, which we adopted on a prospective basis for the year ending January 25, 2026. The Income tax expense applicable to income before income taxes consists of the following:
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Current income taxes: ................... Current income taxes: / Current income taxes:
Federal ................................. Federal / Federal / $ / 19,039 / $ / 14,032 / $ / 5,710
State ................................... State / State / 1,218 / 1,218 / 892 / 892 / 335 / 335
Foreign ................................. Foreign / Foreign / 2,550 / 2,550 / 699 / 699 / 502 / 502
Total current ........................... Total current / Total current / 22,807 / 22,807 / 15,623 / 15,623 / 6,547 / 6,547
Deferred income taxes: .................. Deferred income taxes: / Deferred income taxes:
Federal ................................. Federal / Federal / (1,364) / (1,364) / (4,515) / (4,515) / (2,499) / (2,499)
State ................................... State / State / (885) / (885) / (242) / (242) / (206) / (206)
Foreign ................................. Foreign / Foreign / 825 / 825 / 280 / 280 / 216 / 216
Total deferred .......................... Total deferred / Total deferred / (1,424) / (1,424) / (4,477) / (4,477) / (2,489) / (2,489)
Income tax expense ...................... Income tax expense / Income tax expense / $ / 21,383 / $ / 11,146 / $ / 4,058
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Income before income tax consists of the following:
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
U.S. .................................... U.S. / U.S. / $ / 123,181 / $ / 77,456 / $ / 29,495
Foreign ................................. Foreign / Foreign / 18,269 / 18,269 / 6,570 / 6,570 / 4,323 / 4,323
Income before income tax ................ Income before income tax / Income before income tax / $ / 141,450 / $ / 84,026 / $ / 33,818
The income tax expense (benefit) differs from the amount computed by applying the U.S. federal statutory rate of 21.0% to income before income taxes for the fiscal year ended January 25, 2026 as follows:
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026
(In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages)
US Federal Statutory Tax Rate ........... US Federal Statutory Tax Rate / US Federal Statutory Tax Rate / $ / 29,704 / 21.0 / 21.0 / %
State and Local Income Taxes, Net of Federal Income Tax Effect (1) ... State and Local Income Taxes, Net of Federal Income Tax Effect (1) / State and Local Income Taxes, Net of Federal Income Tax Effect (1) / 258 / 258 / 0.2 / 0.2 / %
Foreign tax effects ..................... Foreign tax effects / Foreign tax effects
Israel .................................. Israel / Israel
Reduced statutory tax rate on qualifying income ... Reduced statutory tax rate on qualifying income / Reduced statutory tax rate on qualifying income / (3,064) / (3,064) / (2.2) / (2.2) / %
Other ................................... Other / Other / 1,606 / 1,606 / 1.2 / 1.2 / %
Other foreign jurisdictions ............. Other foreign jurisdictions / Other foreign jurisdictions / 741 / 741 / 0.5 / 0.5 / %
Effect of cross-border tax laws ......... Effect of cross-border tax laws / Effect of cross-border tax laws
Foreign-derived deduction eligible income ... Foreign-derived deduction eligible income / Foreign-derived deduction eligible income / (4,208) / (4,208) / (3.0) / (3.0) / %
Other ................................... Other / Other / (142) / (142) / (0.1) / (0.1) / %
Tax credits ............................. Tax credits / Tax credits / (1,933) / (1,933) / (1.4) / (1.4) / %
Nontaxable or nondeductible items ....... Nontaxable or nondeductible items / Nontaxable or nondeductible items
Stock-based compensation ................ Stock-based compensation / Stock-based compensation / (1,475) / (1,475) / (1.0) / (1.0) / %
Other ................................... Other / Other / 29 / 29 / — / — / %
Other (2) ............................... Other (2) / Other (2) / (133) / (133) / (0.1) / (0.1) / %
Income tax expense ...................... Income tax expense / Income tax expense / $ / 21,383 / 15.1 / 15.1 / %
(1) State taxes in California, Tennessee, Arizona, and Illinois made up the majority of the tax effect in fiscal year 2026. (2) Includes the tax effects of enactment of new tax laws, change in valuation allowance, and change in unrecognized tax benefits.
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The income tax expense (benefit) differs from the amount computed by applying the U.S. federal statutory rate of 21% to income before income taxes for fiscal years ended January 26, 2025 and January 28, 2024 as follows:
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
(In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages) / (In millions, except percentages)
Tax expense computed at federal statutory rate ... Tax expense computed at federal statutory rate / Tax expense computed at federal statutory rate / $ / 17,645 / 21.0 / 21.0 / % / $ / 7,102 / 21.0 / 21.0 / %
Expense (benefit) resulting from: ....... Expense (benefit) resulting from: / Expense (benefit) resulting from:
State income taxes, net of federal tax effect ... State income taxes, net of federal tax effect / State income taxes, net of federal tax effect / 554 / 554 / 0.7 / 0.7 / % / 120 / 120 / 0.4 / 0.4 / %
Foreign-derived deduction eligible income ... Foreign-derived deduction eligible income / Foreign-derived deduction eligible income / (2,976) / (2,976) / (3.5) / (3.5) / % / (1,408) / (1,408) / (4.2) / (4.2) / %
Stock-based compensation ................ Stock-based compensation / Stock-based compensation / (2,097) / (2,097) / (2.5) / (2.5) / % / (741) / (741) / (2.2) / (2.2) / %
U.S. federal research and development tax credit ... U.S. federal research and development tax credit / U.S. federal research and development tax credit / (990) / (990) / (1.2) / (1.2) / % / (431) / (431) / (1.3) / (1.3) / %
Foreign tax rate differential ........... Foreign tax rate differential / Foreign tax rate differential / (984) / (984) / (1.2) / (1.2) / % / (467) / (467) / (1.4) / (1.4) / %
Other ................................... Other / Other / (6) / (6) / — / — / % / (117) / (117) / (0.3) / (0.3) / %
Income tax expense ...................... Income tax expense / Income tax expense / $ / 11,146 / 13.3 / 13.3 / % / $ / 4,058 / 12.0 / 12.0 / %
In July 2025, the OBBBA was enacted into law and contains several changes to key U.S. federal income tax laws. We have recognized the tax effects of currently effective OBBBA provisions in our results for fiscal year 2026. The amount of cash paid for income taxes (net of refunds) for the fiscal year ended January 25, 2026 is as follows:
Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026
(In millions) / (In millions) / (In millions)
Federal ................................. Federal / Federal / $ / 16,755
State ................................... State / State
California .............................. California / California / 1,049 / 1,049
Other ................................... Other / Other / 1,041 / 1,041
Foreign ................................. Foreign / Foreign
Israel .................................. Israel / Israel / 1,287 / 1,287
Other ................................... Other / Other / 156 / 156
Total income taxes paid, net of refunds ... Total income taxes paid, net of refunds / Total income taxes paid, net of refunds / $ / 20,288
74
Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued)
The tax effect of temporary differences that gives rise to significant portions of the deferred tax assets and liabilities are presented below:
Jan 25, 2026
Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Deferred tax assets: .................... Deferred tax assets: / Deferred tax assets:
Capitalized research and development expenditure ... Capitalized research and development expenditure / Capitalized research and development expenditure / $ / 5,436 / $ / 6,256
Net controlled foreign corporation tested income deferred tax assets ... Net controlled foreign corporation tested income deferred tax assets / Net controlled foreign corporation tested income deferred tax assets / 5,389 / 5,389 / 2,820 / 2,820
Accruals and reserves, not currently deductible for tax purposes ... Accruals and reserves, not currently deductible for tax purposes / Accruals and reserves, not currently deductible for tax purposes / 3,644 / 3,644 / 2,058 / 2,058
Research and other tax credit carryforwards ... Research and other tax credit carryforwards / Research and other tax credit carryforwards / 718 / 718 / 759 / 759
Operating lease liabilities ............. Operating lease liabilities / Operating lease liabilities / 554 / 554 / 299 / 299
Net operating loss and capital loss carryforwards ... Net operating loss and capital loss carryforwards / Net operating loss and capital loss carryforwards / 443 / 443 / 456 / 456
Other deferred tax assets ............... Other deferred tax assets / Other deferred tax assets / 679 / 679 / 566 / 566
Gross deferred tax assets ............... Gross deferred tax assets / Gross deferred tax assets / 16,863 / 16,863 / 13,214 / 13,214
Less valuation allowance ................ Less valuation allowance / Less valuation allowance / (768) / (768) / (1,610) / (1,610)
Total deferred tax assets ............... Total deferred tax assets / Total deferred tax assets / 16,095 / 16,095 / 11,604 / 11,604
Deferred tax liabilities: ............... Deferred tax liabilities: / Deferred tax liabilities:
Equity investments ...................... Equity investments / Equity investments / (2,227) / (2,227) / (264) / (264)
Unremitted earnings of foreign subsidiaries ... Unremitted earnings of foreign subsidiaries / Unremitted earnings of foreign subsidiaries / (1,813) / (1,813) / (891) / (891)
Operating lease assets .................. Operating lease assets / Operating lease assets / (533) / (533) / (286) / (286)
Acquired intangibles .................... Acquired intangibles / Acquired intangibles / (38) / (38) / (70) / (70)
Gross deferred tax liabilities .......... Gross deferred tax liabilities / Gross deferred tax liabilities / (4,611) / (4,611) / (1,511) / (1,511)
Net deferred tax asset (1) .............. Net deferred tax asset (1) / Net deferred tax asset (1) / $ / 11,484 / $ / 10,093
(1) Net deferred tax asset includes long-term deferred tax assets of $13.3 billion and $11.0 billion and long-term deferred tax liabilities of $1.8 billion and $886 million for fiscal years 2026 and 2025, respectively. Long-term deferred tax liabilities are included in other long-term liabilities on our Consolidated Balance Sheets. As of January 25, 2026, we intend to indefinitely reinvest approximately $1.4 billion of cumulative undistributed earnings held by certain subsidiaries. We have not provided the amount of unrecognized deferred tax liabilities for temporary differences related to these investments as the determination of such amount is not practicable. As of January 25, 2026 and January 26, 2025, we had a valuation allowance of $768 million and $1.6 billion, respectively, related to capital loss carryforwards, and certain other deferred tax assets that management determined are not likely to be realized due, in part, to jurisdictional projections of future taxable income, including capital gains. To the extent realization of the deferred tax assets becomes more-likely-than-not, we would recognize such deferred tax assets as income tax benefits during the period. As of January 25, 2026, based on recent jurisdictional taxable income and expected future earnings, we concluded certain state deferred tax assets are more likely than not realizable and released $711 million of valuation allowance. As of January 25, 2026, we had U.S. federal, state and foreign net operating loss carryforwards of $747 million, $427 million and $503 million, respectively. The federal and state carryforwards will begin to expire in fiscal year 2027. The foreign net operating loss carryforwards may be carried forward indefinitely. As of January 25, 2026, we had federal research tax credit carryforwards of $56 million, before the impact of uncertain tax positions, that will begin to expire in fiscal year 2027. We have state research tax credit carryforwards of $1.4 billion, before the impact of uncertain tax positions, of which $1.3 billion is attributable to the State of California and may be carried over indefinitely and $132 million is attributable to various other states and will begin to expire in fiscal year 2028. As of January 25, 2026, we had federal capital loss carryforwards of $902 million that will begin to expire in fiscal year 2028. Our tax attributes remain subject to audit and may be adjusted for changes or modification in tax laws, other authoritative interpretations thereof, or other facts and circumstances. Utilization of tax attributes may also be subject to limitations due to ownership changes and other limitations provided by the Internal Revenue Code and similar state and foreign tax provisions. If any such limitations apply, the tax attributes may expire or be denied before utilization. 75
Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued)
A reconciliation of gross unrecognized tax benefits is as follows:
Jan 25, 2026
Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Balance at beginning of period .......... Balance at beginning of period / Balance at beginning of period / $ / 2,861 / $ / 1,670 / $ / 1,238
Increases in tax positions for current year ... Increases in tax positions for current year / Increases in tax positions for current year / 1,959 / 1,959 / 1,268 / 1,268 / 616 / 616
Increases in tax positions for prior years ... Increases in tax positions for prior years / Increases in tax positions for prior years / 57 / 57 / 48 / 48 / 87 / 87
Lapse in statute of limitations ......... Lapse in statute of limitations / Lapse in statute of limitations / (224) / (224) / (27) / (27) / (19) / (19)
Decreases in tax positions for prior years ... Decreases in tax positions for prior years / Decreases in tax positions for prior years / (157) / (157) / (88) / (88) / (148) / (148)
Settlements ............................. Settlements / Settlements / (76) / (76) / (10) / (10) / (104) / (104)
Balance at end of period ................ Balance at end of period / Balance at end of period / $ / 4,420 / $ / 2,861 / $ / 1,670
Included in the balance of unrecognized tax benefits as of January 25, 2026 are $3.7 billion of tax benefits that would affect our effective tax rate if recognized. We classify an unrecognized tax benefit as a current liability, or amount refundable, to the extent that we anticipate payment or receipt of cash for income taxes within one year. The amount is classified as a long-term liability, or long-term amount refundable, if we anticipate payment or receipt of cash for income taxes during a period beyond a year. We include interest and penalties related to unrecognized tax benefits as a component of income tax expense. We recognized net interest and penalties related to unrecognized tax benefits in the income tax expense line of our consolidated statements of income of $103 million, $92 million, and $42 million during fiscal years 2026, 2025, and 2024, respectively. As of January 25, 2026 and January 26, 2025, we have accrued $374 million and $251 million, respectively, for the payment of interest and penalties related to unrecognized tax benefits, which is not included as a component of our gross unrecognized tax benefits. We are subject to examination by taxing authorities both in the United States and other countries. As of January 25, 2026, the significant tax jurisdictions that may be subject to examination include the United States for fiscal years after 2022, as well as Canada, China, Germany, Hong Kong, India, Israel, Italy, and Taiwan for fiscal years 2014 through 2025. As of January 25, 2026, the significant tax jurisdictions for which we are currently under examination include the United States, Germany, Hong Kong, India, Israel, and Taiwan for fiscal years 2014 through 2025.
Note 14 - Shareholders’ Equity Capital Return Program
On August 26, 2025, our Board of Directors approved an additional $60.0 billion in share repurchase authorization, without expiration. In fiscal years 2026 and 2025, we repurchased 282 million and 310 million shares of our common stock for $40.4 billion and $34.0 billion, respectively. As of January 25, 2026, we were authorized, subject to certain specifications, to repurchase up to $58.5 billion of our common stock. 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 fiscal years 2026, 2025, and 2024, we paid cash dividends to our shareholders of $974 million, $834 million, and $395 million, respectively. 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 15 - Employee Retirement Plans We provide tax-qualified defined contribution plans to eligible employees in the U.S. and certain other countries. Our contribution expense for fiscal years 2026, 2025, and 2024 was $442 million, $314 million, and $255 million, respectively.
Note 16 - 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 76
Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued)
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
Compute & Networking / Compute & Networking / Graphics / Graphics / Graphics / Total / Total / Total
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Year Ended Jan 25, 2026 ................. Year Ended Jan 25, 2026 / Year Ended Jan 25, 2026
Revenue ................................. Revenue / Revenue / $ / 193,479 / $ / 22,459 / $ / 215,938
Other segment items (1) ................. Other segment items (1) / Other segment items (1) / 63,338 / 63,338 / 13,303 / 13,303 / 76,641 / 76,641
Operating income ........................ Operating income / Operating income / $ / 130,141 / $ / 9,156 / $ / 139,297
Year Ended Jan 26, 2025 ................. Year Ended Jan 26, 2025 / Year Ended Jan 26, 2025
Revenue ................................. Revenue / Revenue / $ / 116,193 / $ / 14,304 / $ / 130,497
Other segment items (1) ................. Other segment items (1) / Other segment items (1) / 33,318 / 33,318 / 9,219 / 9,219 / 42,537 / 42,537
Operating income ........................ Operating income / Operating income / $ / 82,875 / $ / 5,085 / $ / 87,960
Year Ended Jan 28, 2024 ................. Year Ended Jan 28, 2024 / Year Ended Jan 28, 2024
Revenue ................................. Revenue / Revenue / $ / 47,405 / $ / 13,517 / $ / 60,922
Other segment items (1) ................. Other segment items (1) / Other segment items (1) / 15,389 / 15,389 / 7,671 / 7,671 / 23,060 / 23,060
Operating income ........................ Operating income / Operating income / $ / 32,016 / $ / 5,846 / $ / 37,862
(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 for fiscal years 2026, 2025, and 2024 was $1.6 billion, $732 million, and $457 million, respectively. Depreciation and amortization expense attributable to our Graphics segment for fiscal years 2026, 2025, and 2024 was $590 million, $372 million, and $307 million, 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. 77
Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued)
A reconciliation of segment operating income to consolidated income before income tax for fiscal years 2026, 2025, and 2024 were as follows:
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Segment operating income ................ Segment operating income / Segment operating income / $ / 139,297 / $ / 87,960 / $ / 37,862
Stock-based compensation expense ........ Stock-based compensation expense / Stock-based compensation expense / (6,386) / (6,386) / (4,737) / (4,737) / (3,549) / (3,549)
Unallocated operating expenses .......... Unallocated operating expenses / Unallocated operating expenses / (1,997) / (1,997) / (1,171) / (1,171) / (728) / (728)
Acquisition-related and other costs ..... Acquisition-related and other costs / Acquisition-related and other costs / (527) / (527) / (599) / (599) / (613) / (613)
Interest income ......................... Interest income / Interest income / 2,300 / 2,300 / 1,786 / 1,786 / 866 / 866
Interest expense ........................ Interest expense / Interest expense / (259) / (259) / (247) / (247) / (257) / (257)
Other income, net ....................... Other income, net / Other income, net / 9,022 / 9,022 / 1,034 / 1,034 / 237 / 237
Consolidated income before income tax ... Consolidated income before income tax / Consolidated income before income tax / $ / 141,450 / $ / 84,026 / $ / 33,818
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.
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
Geographic Revenue based upon Customer Headquarters Location (1): ... Geographic Revenue based upon Customer Headquarters Location (1): / Geographic Revenue based upon Customer Headquarters Location (1): / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
United States ........................... United States / United States / $ / 149,617 / $ / 77,482 / $ / 31,533
Taiwan (2) .............................. Taiwan (2) / Taiwan (2) / 42,345 / 42,345 / 23,600 / 23,600 / 14,912 / 14,912
China (including Hong Kong) ............. China (including Hong Kong) / China (including Hong Kong) / 19,677 / 19,677 / 25,048 / 25,048 / 12,330 / 12,330
Other ................................... Other / Other / 4,299 / 4,299 / 4,367 / 4,367 / 2,147 / 2,147
Total revenue ........................... Total revenue / Total revenue / $ / 215,938 / $ / 130,497 / $ / 60,922
(1) In the third quarter of fiscal year 2026, we changed to revenue based upon the location of our customers’ headquarters as we believe it provides a better representation of the geographic profile of our revenue. Prior period information has been recast to reflect this change. (2) In fiscal year 2026, we estimate 76% of Data Center revenue from Taiwan-headquartered customers was attributed to end customers based in the United States and Europe. Revenue from sales to customers headquartered outside of the United States accounted for 31%, 41%, and 48% of total revenue for fiscal years 2026, 2025, and 2024, respectively. The increase in revenue to the United States for fiscal years 2026 and 2025 was primarily due to higher U.S.-based Compute & Networking segment demand.
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, Neocloud builders, 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. Direct Customers – For 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. For fiscal year 2025, sales to one direct customer represented 12% of total revenue and sales to two direct customers each represented 11% of total revenue, all of which were primarily attributable to the Compute & Networking segment. For fiscal year 2024, sales to one direct customer represented 13% of total revenue, and were primarily attributable to the Compute & Networking segment. 78
Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued)
The following table summarizes revenue by specialized markets:
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
Revenue by End Market: .................. Revenue by End Market: / Revenue by End Market: / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Data Center ............................. Data Center / Data Center / $ / 193,737 / $ / 115,186 / $ / 47,525
Compute ................................. Compute / Compute / 162,361 / 162,361 / 102,196 / 102,196 / 38,950 / 38,950
Networking .............................. Networking / Networking / 31,376 / 31,376 / 12,990 / 12,990 / 8,575 / 8,575
Gaming .................................. Gaming / Gaming / 16,042 / 16,042 / 11,350 / 11,350 / 10,447 / 10,447
Professional Visualization .............. Professional Visualization / Professional Visualization / 3,191 / 3,191 / 1,878 / 1,878 / 1,553 / 1,553
Automotive .............................. Automotive / Automotive / 2,349 / 2,349 / 1,694 / 1,694 / 1,091 / 1,091
OEM and Other ........................... OEM and Other / OEM and Other / 619 / 619 / 389 / 389 / 306 / 306
Total revenue ........................... Total revenue / Total revenue / $ / 215,938 / $ / 130,497 / $ / 60,922
The following table presents summarized information for long-lived assets by country. Long-lived assets consist of property and equipment and exclude other assets, operating lease assets, goodwill, and intangible assets.
Jan 25, 2026
Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025
Long-lived assets: ...................... Long-lived assets: / Long-lived assets: / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
United States ........................... United States / United States / $ / 5,125 / $ / 3,626
Taiwan .................................. Taiwan / Taiwan / 3,219 / 3,219 / 1,481 / 1,481
Israel .................................. Israel / Israel / 1,471 / 1,471 / 840 / 840
Other ................................... Other / Other / 568 / 568 / 336 / 336
Total long-lived assets ................. Total long-lived assets / Total long-lived assets / $ / 10,383 / $ / 6,283
Note 17 - Leases Our lease obligations primarily consist of operating leases for our offices and data centers, with lease periods expiring between fiscal years 2027 and 2041. Future minimum lease obligations under our non-cancelable lease agreements as of January 25, 2026 were as follows:
Operating Lease Obligations / Operating Lease Obligations / Operating Lease Obligations
(In millions) / (In millions) / (In millions)
Fiscal Year: ............................ Fiscal Year: / Fiscal Year:
2027 .................................... 2027 / 2027 / $ / 493
2028 .................................... 2028 / 2028 / 485 / 485
2029 .................................... 2029 / 2029 / 457 / 457
2030 .................................... 2030 / 2030 / 381 / 381
2031 .................................... 2031 / 2031 / 314 / 314
2032 and thereafter ..................... 2032 and thereafter / 2032 and thereafter / 1,494 / 1,494
Total ................................... Total / Total / 3,624 / 3,624
Less imputed interest ................... Less imputed interest / Less imputed interest / 680 / 680
Present value of net future minimum lease payments ... Present value of net future minimum lease payments / Present value of net future minimum lease payments / 2,944 / 2,944
Less short-term operating lease liabilities ... Less short-term operating lease liabilities / Less short-term operating lease liabilities / 372 / 372
Long-term operating lease liabilities ... Long-term operating lease liabilities / Long-term operating lease liabilities / $ / 2,572
Between fiscal years 2027 and 2030, we expect to commence leases with future obligations of $22.7 billion, primarily data center leases to support our research and development efforts, with lease terms of 1.8 to 20 years. 79
Table of Contents NVIDIA Corporation and Subsidiaries Notes to the Consolidated Financial Statements (Continued)
Operating lease costs for fiscal years 2026, 2025, and 2024 were $462 million, $356 million, and $269 million, respectively. Short-term and variable lease costs for fiscal years 2026, 2025, and 2024 were not significant. Other information related to leases was as follows:
Year Ended
Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended / Year Ended
Jan 25, 2026 / Jan 25, 2026 / Jan 25, 2026 / Jan 26, 2025 / Jan 26, 2025 / Jan 26, 2025 / Jan 28, 2024 / Jan 28, 2024 / Jan 28, 2024
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Supplemental cash flows information ..... Supplemental cash flows information / Supplemental cash flows information
Operating cash flow used for operating leases ... Operating cash flow used for operating leases / Operating cash flow used for operating leases / $ / 428 / $ / 313 / $ / 286
Operating lease assets obtained in exchange for lease obligations ... Operating lease assets obtained in exchange for lease obligations / Operating lease assets obtained in exchange for lease obligations / $ / 1,439 / $ / 877 / $ / 531
As of January 25, 2026, our operating leases have a weighted average remaining lease term of 8.8 years and a weighted average discount rate of 4.38%. As of January 26, 2025, our operating leases had a weighted average remaining lease term of 6.5 years and a weighted average discount rate of 4.16%. 80
NVIDIA Corporation and Subsidiaries Schedule II – Valuation and Qualifying Accounts
Description
Description / Description / Balance atBeginning of Period / Balance atBeginning of Period / Balance atBeginning of Period / Additions / Additions / Additions / Deductions / Deductions / Deductions / Balance atEnd of Period / Balance atEnd of Period / Balance atEnd of Period
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Fiscal year 2026 ........................ Fiscal year 2026 / Fiscal year 2026
Allowance for doubtful accounts ......... Allowance for doubtful accounts / Allowance for doubtful accounts / $ / 4 / $ / — / (1) / (1) / (1) / $ / — / (1) / (1) / (1) / $ / 4
Sales return allowance .................. Sales return allowance / Sales return allowance / $ / 82 / $ / 188 / (2) / (2) / (2) / $ / (100) / (4) / (4) / (4) / $ / 170
Deferred tax valuation allowance ........ Deferred tax valuation allowance / Deferred tax valuation allowance / $ / 1,610 / $ / 31 / (3) / (3) / (3) / $ / (873) / (3) / (3) / (3) / $ / 768
Fiscal year 2025 ........................ Fiscal year 2025 / Fiscal year 2025
Allowance for doubtful accounts ......... Allowance for doubtful accounts / Allowance for doubtful accounts / $ / 4 / $ / — / (1) / (1) / (1) / $ / — / (1) / (1) / (1) / $ / 4
Sales return allowance .................. Sales return allowance / Sales return allowance / $ / 109 / $ / 151 / (2) / (2) / (2) / $ / (178) / (4) / (4) / (4) / $ / 82
Deferred tax valuation allowance ........ Deferred tax valuation allowance / Deferred tax valuation allowance / $ / 1,552 / $ / 58 / (3) / (3) / (3) / $ / — / (3) / (3) / (3) / $ / 1,610
Fiscal year 2024 ........................ Fiscal year 2024 / Fiscal year 2024
Allowance for doubtful accounts ......... Allowance for doubtful accounts / Allowance for doubtful accounts / $ / 4 / $ / — / (1) / (1) / (1) / $ / — / (1) / (1) / (1) / $ / 4
Sales return allowance .................. Sales return allowance / Sales return allowance / $ / 26 / $ / 213 / (2) / (2) / (2) / $ / (130) / (4) / (4) / (4) / $ / 109
Deferred tax valuation allowance ........ Deferred tax valuation allowance / Deferred tax valuation allowance / $ / 1,484 / $ / 162 / (3) / (3) / (3) / $ / (94) / (3) / (3) / (3) / $ / 1,552
(1) Additions represent either expense or acquired balances and deductions represent write-offs. (2) Additions represent estimated product returns charged as a reduction to revenue or an acquired balance. (3) Additional valuation allowance on deferred tax assets not likely to be realized. Additions represent additional valuation allowance on certain state and other deferred tax assets. Deductions mainly represent the release of valuation allowance on certain state deferred tax assets. Refer to Note 13 of the Notes to the Consolidated Financial Statements in Part IV, Item 15 of this Annual Report on Form 10-K for additional information. (4) Represents sales returns. 81