Q1 FY2027 Earnings — Reported May 20, 2026 · After Market Close
Record $81.6B Revenue — Data Center +92% YoY · Q2 Guide $91B
NVIDIA delivered its strongest quarter ever. Revenue of $81.6B beat $78.8B consensus by 3.5%. Non-GAAP EPS of $1.87 beat $1.77 est. by 5.6%. Data Center surged 92% to $75.2B — 92% of total sales. Free cash flow hit $48.6B. Dividend raised 25x to $0.25/share. $80B buyback authorization added. Q2 guided at $91B — above all Street estimates. Vera CPU targets $20B standalone revenue in FY2027.
Key Metrics — Q1 FY2027 Actuals
Total Revenue
$81.6B
+85% YoY · +20% QoQ
Data Center Revenue
$75.2B
+92% YoY · 92% of sales
Non-GAAP Gross Margin
75.0%
vs 60.8% Q1 FY26
Operating Income
$53.5B
+147% YoY
Non-GAAP EPS
$1.87
vs $0.76 Q1 FY26
Free Cash Flow
$48.6B
vs $26.0B Q1 FY26
Q2 FY2027 Revenue Guide
$91.0B
±2% · Excl. China DC revenue
EPS Beat vs Consensus
+5.6%
$1.87 actual vs $1.77 est.
Dividend Increase
25x
$0.01 → $0.25/share quarterly
Share Buyback Added
$80B
New authorization on top of existing
Beat / Miss Matrix
Beats
RevenueEst. $78.8B$81.6B (+3.5%)
Non-GAAP EPSEst. $1.77$1.87 (+5.6%)
Data Center RevenueEst. $73.1B$75.2B (+2.9%)
Gross Margin (non-GAAP)Est. ~74%75.0%
Q2 Revenue GuidanceEst. ~$87–89B$91.0B
Free Cash FlowEst. ~$44B$48.6B
Concerns
China RevenueExpected modest$0 — zero H20 shipped
Stock ReactionBeat expected−0.5% to −1.5% post
Operating Expenses—$7.6B (+52% YoY)
Gaming Revenue—<8% of sales — neglected
Supply Commitments—$119B — execution risk
Gross Margin QoQ75.0% prior Q−0.1pp (slight compression)
P&L Summary — Q1 FY2027 vs Q1 FY2026 (USD billions)
Select Income Statement
Total Revenue$81.6B$44.1B+85%
Data Center$75.2B$39.1B+92%
Gaming / Edge~$4.8B~$3.1B<8% mix
Gross Margin (non-GAAP)75.0%60.8%+14.2pp
Operating Expenses$7.6B$5.0B+52%
Operating Income$53.5B$21.6B+147%
Net Income (GAAP)$58.3B$18.8B+211%
Diluted EPS (GAAP)$2.39$0.76+214%
Non-GAAP EPS$1.87$0.61*+207%
Free Cash Flow$48.6B$26.0B+87%
Op. Cash Flow$50.3B$27.4B+84%
Segments & CEO Quote
Data Center — $75.2B (92% of Revenue)
Hyperscaler Revenue$38B · >50% of DC total
ACIE (AI Cloud/Industrial/Enterprise)$37B · 3x YoY
Blackwell ArchitectureDominant product · sold out
Networking (InfiniBand/NVLink)+64% QoQ
Data Centers >10MW80+ globally enabled
Supply Commitments$119B total
Platform Strategy & New Launches
Vera CPU$20B revenue target FY2027
Vera Rubin (GPU)H2 2026 · 10x perf/watt vs Blackwell
Rubin revenue (FY2027 est.)$38.2B (consensus)
Gaming / Edge<8% — deprioritized
China H20 Revenue$0 — export controls
CUDA Ecosystem~80%+ AI GPU market share
"The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed. Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries. Blackwell is now in full production. Vera Rubin is on track. The demand signals we see give us confidence that this is the beginning, not the peak."
Jensen Huang, CEO & Founder · Q1 FY2027 Earnings Call, May 20, 2026
Guidance & Forward Roadmap
Management Targets — Q1 FY2027 Update
Q2 FY2027 Revenue
$91.0B ±2%
Aug 2026
Q2 Non-GAAP Gross Margin
~75.0%
Reiterated
FY2027 Revenue (consensus)
~$370B
+74% YoY
Vera CPU Revenue FY2027
$20B
New market
Rubin Revenue FY2027 (est.)
$38.2B
H2 2026 ramp
AI Infra Spend (CFO estimate)
$3–4T/yr
By decade end
Quarterly Dividend
$0.25 ✓
25x raise
Positives & Concerns
Positives
▲$91B Q2 guidance with zero China revenue is extraordinary. If China restrictions ease and H200/H20 sales resume, Q2 and beyond have meaningful upside to the current $91B base — no China revenue is already baked in.
▲75% non-GAAP gross margins at $81B in quarterly revenue is structurally exceptional. No other semiconductor company in history has maintained this margin profile at this scale.
▲Vera CPU entering a $200B market is a new leg of the growth story. CFO projects $20B standalone CPU revenue in FY2027 — this was zero two years ago. CUDA will dominate CPU-GPU workloads.
▲$48.6B free cash flow in a single quarter funds $80B buyback + 25x dividend raise with cash to spare. Capital return is accelerating dramatically — shareholder-friendly inflection.
▲Vera Rubin offers 10x performance per watt vs Blackwell — every hyperscaler will need to upgrade again in H2 2026. The upgrade supercycle has another major leg, and NVDA captures the spend.
Concerns
▼Stock fell 1.5% on a record-breaking quarter — the "buy the rumor, sell the news" dynamic is structural at 30x forward earnings. Expectations are so elevated that even massive beats produce muted or negative reactions.
▼China is a permanent zero — no H20 revenue, no H200 shipments. Chinese customers already ordered 2M+ H200 chips for 2026. This is a multi-billion dollar revenue hole with no clear timeline for resolution.
▼Gaming segment de-prioritized — memory shortage means Blackwell and Rubin production takes priority over GeForce GPUs. Long-term brand damage and market share loss to AMD in consumer graphics is an emerging risk.
▼$119B in supply commitments is the largest forward obligation in semiconductor history. Any AI spending slowdown or hyperscaler capex pullback leaves NVDA holding enormous inventory and write-down exposure.
▼Custom ASIC competition is accelerating — Google TPUs, Amazon Trainium, Meta MTIA, and Microsoft Maia are all becoming more capable and cost-effective for specific workloads, gradually reducing reliance on NVDA hardware.
Analyst Coverage — Post Q1 FY2027
Wall Street Ratings
| Firm | Rating | Price Target | Upside ~$215 | Key Note |
|---|
| Wedbush | Outperform | $300 | +40% | Matt Bryson — AI silicon leading supplier thesis intact |
| Citizens | Overweight | $291 | +35% | Highest target — Rubin supercycle conviction |
| Northland | Outperform | $276 | +28% | Raised post Q1; Vera CPU new TAM |
| Morgan Stanley | Overweight | $160 | −26% | Most cautious major firm — valuation concern |
| Goldman Sachs | Buy | $148 | −31% | Lowest major PT — China risk + competition |
| Consensus (62 analysts) | Strong Buy | $295.69 | +38% | ~80%+ Buy/Strong Buy · PT range $120–$300 |
Earnings Verdict
The Undisputed AI Infrastructure Monopoly
NVIDIA delivered its most impressive quarter in history — $81.6B in revenue, 75% gross margins, $48.6B free cash flow, and a $91B Q2 guidance that exceeded every estimate on the Street. The 25x dividend hike signals management's confidence that cash generation is a permanent structural shift, not a cycle. The bear case is real but increasingly manageable: China is already zero in the Q2 guide, ASIC competition is gradual not sudden, and supply commitments are backed by customer contracts, not speculative inventory. The stock's muted post-earnings reaction reflects valuation friction at 30x forward earnings, not business deterioration. With Vera Rubin launching in H2 2026 and the CPU market as a new $200B+ opportunity, the growth runway extends well into FY2028. At ~$215, the consensus PT of $296 implies 38% upside over 12 months. This remains the most asymmetrically positioned semiconductor company in the world.
Next Earnings
Aug 26, 2026