NVIDIA (NVDA) Q1 2027 earnings summary

Executive summary

• Achieved record quarterly revenue of $82 billion, up 85% year-over-year and 20% sequentially, driven by strong demand for data center products and Blackwell architecture adoption across hyperscalers and AI cloud providers.

• Net income reached $58.3 billion, a 211% increase year-over-year, with diluted EPS of $2.39, up from $0.76 in the prior year quarter.

• Returned a record $20 billion to shareholders via repurchases and dividends, announced an $80 billion share repurchase authorization, and increased the quarterly dividend to $0.25 per share.

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

• Launched Vera Rubin platform and expanded partnerships with major AI and cloud providers.

Financial highlights

• GAAP gross margin was 74.9%, up from 60.5% a year ago, with non-GAAP gross margin at 75% and record free cash flow of $49 billion.

• GAAP operating income surged 147% to $53.5 billion; net income up 211% to $58.3 billion; GAAP diluted EPS increased 214% to $2.39.

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

• Free cash flow reached $48.6 billion, up from $26.1 billion in the prior year.

• Cash and cash equivalents at quarter-end were $13.2 billion.

Outlook and guidance

• Q2 revenue expected at $91 billion, ±2%, with sequential growth led by Data Center; gross margins expected at 74.9% GAAP and 75% non-GAAP, ±50 basis points.

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

• Full-year OPEX growth projected in the upper 40s percent year-over-year, driven by higher R&D and AI tool usage.

• Full-year tax rates expected between 16%-18%, lower than prior guidance.

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