01—Abstract
Summary
Summary of the 10-Q filed May 20, 2026. Cited figures are marked; the original filing is the authoritative source.
NVIDIA Corporation's first quarter fiscal year 2027 (ending April 26, 2026) report demonstrates exceptionally strong performance, with revenue soaring to $81.6 billiona, an 85% increase year-over-year.
This growth was primarily fueled by the Compute & Networking segment, which saw a significant 88% jump, largely driven by their Data Center products, including the ramp-up of Blackwell systems and strong demand for their networking solutions. The company's gross margin expanded considerably to 74.9%, up from 60.5% in the prior year, benefiting from a reduction in inventory provisions compared to the prior period's significant charge. Net income skyrocketed by 211% year-over-year to $58.3 billionb, resulting in a diluted EPS of $2.39.
NVIDIA continues to be a dominant player in the AI infrastructure space, with significant investments in private companies and infrastructure funds. The company also announced an additional $80 billionc share repurchase authorization and increased its quarterly dividend to $0.25 per share. While facing ongoing geopolitical risks and supply chain complexities, NVIDIA's financial strength and market position remain robust, underscoring its critical role in the advancement of AI and accelerated computing.
02—Key points
Key Highlights
- Revenue reached $81.6 billion, an 85% increase year-over-year, significantly exceeding prior year performance.
- Net income surged by 211% year-over-year to $58.3 billion, with diluted EPS at $2.39.
- Gross margin improved substantially to 74.9% from 60.5% year-over-year, driven by lower inventory provisions.
- The Compute & Networking segment, particularly Data Center products, showed immense strength with revenue up 88% year-over-year.
- NVIDIA announced an additional $80 billion share repurchase authorization and increased its quarterly dividend to $0.25 per share.
- Significant investments of $18.6 billion were made in private companies and infrastructure funds, highlighting strategic expansion in the AI ecosystem.
- The company reported substantial growth in Edge Computing revenue, up 29% year-over-year, indicating diversification beyond data centers.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2027, NVIDIA Corp kept $0.71.
- Revenue$81.61B100.0%
- Cost of revenue−$20.46B25.1%
- Gross profit$61.16B74.9%
- Operating costs−$7.62B9.3%
- Operating income$53.54B65.6%
- Interest, other & tax$4.79B5.9%
- Net income$58.32B71.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2027filed May 20, 2026Financial Statements
Q1 FY2027 against Q1 FY2026
| Line item | Q1 FY2027Q1 FY2026 | Change |
|---|---|---|
| Revenue | $81.61B$44.06B | +85.2% |
| Cost of Revenue | $20.46B$17.39B | +17.6% |
| Gross Profit | $61.16B$26.67B | +129.3% |
| R&D Expenses | $6.32B$3.99B | +58.5% |
| SG&A Expenses | $1.30B$1.04B | +24.9% |
| Operating Expenses | $7.62B$5.03B | +51.5% |
| Operating Income | $53.54B$21.64B | +147.4% |
| Net Income | $58.32B$18.77B | +210.6% |
| EPS (Basic) | $2.40$0.77 | +211.7% |
| EPS (Diluted) | $2.39$0.76 | +214.5% |
| Shares Outstanding (Basic) | 24.29B24.44B | −0.6% |
| Shares Outstanding (Diluted) | 24.39B24.61B | −0.9% |
05—Questions
Frequently Asked Questions
What were the main drivers of NVIDIA's revenue growth in this quarter?
NVIDIA's substantial revenue growth of 85% year-over-year to $81.6 billion was primarily driven by strong demand for its Data Center products, including the new Blackwell systems and networking solutions within the Compute & Networking segment. The company also saw significant growth in its Edge Computing segment.
How has NVIDIA's profitability evolved compared to the previous year?
Profitability has seen a dramatic improvement. Net income increased by 211% year-over-year to $58.3 billion, and gross margin expanded significantly to 74.9% from 60.5% in the prior year. This improvement was partly due to a reduction in inventory provisions compared to a large charge in the prior year's first quarter.
What is NVIDIA doing to return capital to shareholders and invest in future growth?
NVIDIA announced an additional $80 billion share repurchase authorization, signaling confidence in its future and commitment to returning capital to shareholders. They also increased their quarterly cash dividend to $0.25 per share. Strategically, the company invested $18.6 billion in private companies and infrastructure funds to further bolster its AI ecosystem.
What are the key risks or challenges NVIDIA highlighted in this filing?
NVIDIA highlighted several risks, including the ongoing geopolitical environment and potential impacts on its global supply chain, particularly concerning export controls and their effect on sales to certain regions like China. They also noted challenges in accurately forecasting demand due to long manufacturing lead times and the complexity of introducing new architectures concurrently, which could lead to supply-demand mismatches and impact gross margins. Competition and potential reliance on third-party platforms were also mentioned.
06—Continue