NVIDIA Corporation
NVDA · Nasdaq
Next quarter
Reports Aug 26, 2026, after the close.
Consensus is $2.01 EPS for Jul 2026 across 11 estimates, ranging $1.97 to $2.05.
NVDA Apr 2026
- 10.00%
- -1.77%
- $1.70
- $1.87
- —
- $81.61B
Reported results
- $81.61B
- 74.93%
- $53.54B
- 65.60%
- $58.32B
- $2.39
Highlights
- Record growth: Q1 FY2027 revenue was $81.6 billion, up 20% sequentially and 85% year over year, while non-GAAP diluted EPS of $1.87 exceeded the $1.70 consensus by 10%.
- Data Center dominance: Data Center revenue reached a record $75.2 billion, up 21% sequentially and 92% year over year, representing roughly 92% of total revenue.
- Blackwell-led demand: Data Center compute revenue was $60.4 billion, up 77% year over year, and networking revenue was $14.8 billion, up 199%, driven by Blackwell systems, InfiniBand, Spectrum-X Ethernet and NVLink.
- Strong forward guide: NVIDIA expects Q2 FY2027 revenue of $91.0 billion, plus or minus 2%, implying roughly 11.5% sequential growth, while assuming no Data Center compute revenue from China.
- Margins remain elevated: Non-GAAP gross margin was 75.0%, essentially flat sequentially and up 14.2 percentage points year over year, helped by the absence of the prior-year $4.5 billion H20 charge.
- GAAP earnings benefited from investments: GAAP net income was $58.3 billion versus non-GAAP net income of $45.5 billion, with $15.9 billion of net investment gains contributing to other income.
- Shareholder returns expanded: NVIDIA returned approximately $20.0 billion in Q1, including $20.2 billion of share repurchases, authorized another $80.0 billion of buybacks, and raised its quarterly dividend from $0.01 to $0.25 per share.
- Broader platform exposure: Edge Computing revenue was $6.4 billion, up 10% sequentially and 29% year over year, while Hyperscale and AI Clouds, Industrial, and Enterprise revenue were $37.9 billion and $37.4 billion, respectively.
Analysis
NVIDIA's Q1 FY2027 was another acceleration quarter, with revenue of $81.6 billion up 20% from the prior quarter's $68.1 billion and 85% from $44.1 billion a year earlier. Non-GAAP diluted EPS was $1.87, 10% above the $1.70 consensus, and up from $1.59 in the prior quarter and $0.78 a year ago. The core result was powered by Data Center, where revenue rose 21% sequentially to $75.2 billion as Blackwell systems and networking products continued to ramp. Edge Computing added $6.4 billion, but its growth was much slower at 10% sequentially.
The print also showed why headline GAAP earnings need context. GAAP net income rose 36% sequentially and 211% year over year to $58.3 billion, but $15.9 billion of investment gains lifted other income; non-GAAP net income was $45.5 billion. Operating execution remained strong: non-GAAP gross margin held at 75.0%, while operating income rose 21% sequentially to $53.8 billion despite operating expenses increasing 12%. NVIDIA's $91.0 billion Q2 revenue outlook points to continued momentum, although it assumes no China Data Center compute revenue. The company simultaneously committed to larger shareholder returns and an aggressive product and infrastructure investment cycle.
Data Center acceleration
Data Center remained the quarter's defining business, with revenue reaching $75.2 billion, up 21% sequentially and 92% year over year. Management attributed the increase to the ramp of Blackwell 300 systems and demand for InfiniBand, Spectrum-X Ethernet and NVLink solutions. The customer base is also broadening beyond the largest cloud providers.
- Market mix: Hyperscale revenue was $37.9 billion, up 12% sequentially and 115% year over year, while AI Clouds, Industrial, and Enterprise revenue was $37.4 billion, up 31% sequentially and 74% year over year.
- Product mix: Data Center compute revenue was $60.4 billion, up 18% sequentially and 77% year over year; networking revenue was $14.8 billion, up 35% sequentially and 199% year over year.
- Customer concentration: Three direct customers represented 21%, 17% and 16% of total revenue, all primarily tied to Compute & Networking.
- China exposure: NVIDIA shipped no Data Center Hopper products to China in the quarter, versus $4.6 billion in Q1 FY2026, and the Q2 outlook assumes no China Data Center compute revenue.
Margins and earnings quality
The operating result was exceptionally profitable, but reported GAAP earnings were amplified by investment revaluations. Non-GAAP measures provide the cleaner view of the underlying quarter because NVIDIA now includes stock-based compensation in its non-GAAP presentation and excludes gains and losses on equity securities.
- Operating leverage: GAAP operating income was $53.5 billion, up 21% sequentially and 147% year over year; non-GAAP operating income was $53.8 billion, also up 21% sequentially.
- Gross margin: GAAP gross margin was 74.9% versus 75.0% in the prior quarter and 60.5% a year ago. The year-ago comparison benefited from the non-recurrence of the $4.5 billion H20 excess-inventory and purchase-obligation charge.
- Expense investment: Operating expenses rose 12% sequentially and 52% year over year to $7.6 billion, driven by employee growth, compensation, compute and infrastructure costs, and engineering materials for new products.
- Investment gains: GAAP other income was $16.4 billion, including $13.4 billion of unrealized gains on publicly held equity securities and $2.6 billion of gains on non-marketable securities. Non-GAAP other income was $457 million.
Q2 outlook and roadmap
NVIDIA's outlook calls for another substantial step up, even as the company excludes China Data Center compute from its assumptions. The company is also preparing for a faster architecture cadence, which supports growth but raises execution and inventory-management demands.
- Revenue guide: Q2 FY2027 revenue is expected to be $91.0 billion, plus or minus 2%, versus $81.6 billion in Q1 and $68.1 billion in the prior quarter.
- Margin guide: GAAP and non-GAAP gross margins are expected at 74.9% and 75.0%, respectively, each plus or minus 50 basis points.
- Expense guide: GAAP operating expenses are expected to be approximately $8.5 billion and non-GAAP operating expenses approximately $8.3 billion.
- Next platform: Rubin is expected to begin shipping in the second half of FY2027, following Blackwell, while NVIDIA introduced the Vera Rubin platform and related agentic-AI infrastructure during the quarter.
- Reporting change: NVIDIA will move to Data Center and Edge Computing market platforms, with Data Center split between Hyperscale and ACIE, to better reflect its growth opportunities.
Capital allocation
The quarter marked a significant expansion of NVIDIA's capital-return program, although shareholder distributions are occurring alongside unusually large ecosystem and capacity investments.
- Repurchases: NVIDIA repurchased 108.3 million shares for $20.2 billion during the quarter, including 91.1 million shares for $16.9 billion from March 23 through April 26.
- Authorization: The company had $38.5 billion remaining under its existing authorization at quarter-end and added a further $80.0 billion authorization on May 18, without an expiration date.
- Dividend: The quarterly cash dividend was increased from $0.01 to $0.25 per share, with the next payment scheduled for June 26, 2026.
- Investment spending: NVIDIA purchased $18.6 billion of non-marketable securities during the quarter and reported $27.0 billion of investment commitments, including future commitments to infrastructure funds.
Cash and commitments
NVIDIA generated substantial cash while committing to the supply, cloud and facilities needed to support the AI buildout. These commitments are manageable against current cash generation but increase the consequences of a demand or product-cycle mismatch.
- Cash generation: Operating cash flow was $50.3 billion and free cash flow was $48.6 billion, compared with $27.4 billion and $26.1 billion, respectively, a year earlier.
- Liquidity: Cash, cash equivalents and marketable debt securities totaled $50.3 billion at quarter-end, alongside $30.2 billion of marketable equity securities; total debt was $8.5 billion.
- Supply commitments: Manufacturing, supply and capacity commitments were $119 billion, with $95 billion payable during the remainder of FY2027 and the balance through FY2031.
- Cloud and facilities: Multi-year cloud-service commitments totaled $30 billion, while NVIDIA expects $32.4 billion of future operating lease obligations primarily for data centers between Q2 FY2027 and FY2033.
- Working capital: Inventory increased to $25.8 billion from $21.4 billion at fiscal year-end, while accounts receivable rose to $40.7 billion from $38.5 billion.
