NVIDIA (NVDA) Q1 2027 earnings summary

Executive summary

• Achieved record quarterly revenue of $81.6 billion, up 85% year-over-year and 20% sequentially, driven by strong demand for Data Center and AI solutions, particularly the Blackwell platform.

• Data Center revenue reached $75.2 billion, up 92% year-over-year and 21% sequentially, with significant adoption of Blackwell architecture across hyperscalers and AI cloud providers.

• Edge Computing revenue was $6.4 billion, up 29% year-over-year and 10% sequentially, led by workstation demand and growing physical AI momentum.

• Returned $20.0 billion to shareholders via repurchases and dividends; announced $80.0 billion additional repurchase authorization and increased quarterly dividend to $0.25 per share.

• Transitioned to a new reporting framework with Data Center (Hyperscale and ACIE) and Edge Computing platforms.

Financial highlights

• GAAP gross margin was 74.9%, up from 60.5% a year ago; non-GAAP gross margin was 75.0%.

• GAAP net income was $58.3 billion, up 211% year-over-year; diluted EPS was $2.39, up from $0.76.

• Operating income rose 147% year-over-year to $53.5 billion GAAP and $53.8 billion non-GAAP.

• Free cash flow for the quarter was $48.6 billion, up from $26.1 billion a year ago.

• Operating expenses increased 52% year-over-year to $7.6 billion, mainly due to higher compensation, infrastructure, and R&D costs.

Outlook and guidance

• Q2 FY27 revenue expected at $91.0 billion, plus or minus 2%, with sequential growth led by Data Center.

• Gross margins expected at 74.9% GAAP and 75.0% non-GAAP, plus or minus 50 basis points.

• Operating expenses projected at $8.5 billion GAAP and $8.3 billion non-GAAP.

• Full-year tax rates expected between 16.0% and 18%, lower than prior guidance.

• No Data Center compute revenue from China assumed in Q2 outlook due to regulatory uncertainty.