NVDA · 10-K · 2026A · Full report

Inventory and Purchase Obligations

NVIDIA CORP · 2026-02-25 · Importance 71 · Surprise 82

Provisions for inventory and excess inventory purchase obligations were $7.2 billion in fiscal year 2026 (versus $3.7 billion in FY2025), which included the $4.5 billion H20-related charge recorded in Q1 FY2026. Sales of previously reserved inventory and settlements released $1.5 billion in FY2026 (versus $689 million in FY2025). The company reports these provisions unfavorably impacted gross margin by 2.6% in FY2026 (2.3% in FY2025) and contributed to a gross margin decline to 71.1% from 75.0%.

Key facts

• NVIDIA may place non-cancellable inventory orders in advance of historical lead times, pay premiums and provide deposits to secure future supply and capacity.