NVDA · NVIDIA Corporation

NVIDIA's Q1 FY2027 results showcased exceptional growth, with record revenue of $81.6B, up 85% year-over-year, driven by the ramp of Blackwell 300 products and surging demand for AI infrastructure. Data Center revenue, the primary growth engine, reached a record $75.2B, up 92% YoY, as hyperscale and enterprise customers expanded AI factories. Compute revenue (under previous reporting) was $60.4B, up 77%, while networking revenue hit $14.8B, up 199%. Gross margins improved significantly YoY to 74.9% GAAP and 75.0% non-GAAP, benefiting from lower inventory provisions (no repeat of prior year's $4.5B H20 charges). Operating expenses rose 52% GAAP YoY due to higher compensation and R&D investments, but operating income more than doubled to $53.5B GAAP. Non-GAAP net income grew 139% to $45.5B. Diluted EPS surged to $2.39 GAAP and $1.87 non-GAAP. The company generated robust operating cash flow of $50.3B and free cash flow of $48.6B. Management guided Q2 FY2027 revenue of $91.0B (±2%), implying continued acceleration, with gross margins expected to remain stable. Additionally, the Board approved an $80B share repurchase authorization and raised the quarterly dividend from $0.01 to $0.25 per share, signaling strong confidence in future cash flows. The new reporting framework splitting Data Center into Hyperscale and ACIE sub-segments will provide enhanced visibility into customer diversification.