NVDA · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

NVIDIA CORP · 2026-05-20 · Importance 69 · Surprise 64 · Matches filing data

Income tax expense was $11.6 billion in Q1 FY2027 versus $3.1 billion in Q1 FY2026, reflecting higher pretax income. Income tax as a percentage of income before tax rose to 16.6% in Q1 FY2027 from 14.3% in Q1 FY2026. NVIDIA attributed the increase in its effective tax rate primarily to a lower percentage of tax benefits from stock-based compensation relative to the increase in income before tax. The company noted that its effective tax rates remained below the U.S. federal statutory rate of 21% due to foreign-derived deduction eligible income, lower-tax jurisdictions, stock-based compensation, and the U.S. federal research tax credit.

Key facts

• Income tax expense for the first quarter of fiscal year 2027: $11.6 billion, and for the first quarter of fiscal year 2026: $3.1 billion. source
• Income tax expense represented 14.2% of revenue for the three months ended Apr 26, 2026 in the condensed consolidated statements percentage table. source
• Income tax as a percentage of income before income tax was 16.6% for the first quarter of fiscal year 2027 and 14.3% for the first quarter of fiscal year 2026. source
• Our effective tax rates for the first quarter of fiscal years 2027 and 2026 were lower than the U.S. federal statutory rate of 21% primarily due to tax benefits from foreign-derived deduction eligible income, income earned in jurisdictions that were subject to taxes at rates lower than the U.S. federal statutory tax rate, stock-based compensation, and the U.S. federal research tax credit. source

Impact estimates