NVIDIA Corp.: Q1 FY2027 earnings call

What management said about Q1 FY2027, from the documents filed with the SEC on 20 May 2026: press release, CFO commentary. Guidance figures: 1 raised, 1 lowered, 4 new. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 85% year on year: Revenue was $81.6 billion, up 20% from the prior quarter and up 85% from a year ago. The prior release had guided first-quarter revenue to $78.0 billion, plus or minus 2%. Source
• Data Center drove most of growth: Data Center revenue was $75.2 billion, up 92% from a year ago and 21% sequentially, driven by the ramp of Blackwell 300 products and demand for networking. Source
• Gross margin held near 75%: GAAP gross margin was 74.9% and non-GAAP was 75.0%, approximately flat sequentially, with Blackwell remaining the majority of revenue. Source
• Inventory and supply commitments increased: Inventory was $25.8 billion, up from $21.4 billion sequentially. Total supply-related commitments were $119.0 billion. Source
• Free cash flow of $48.6 billion: Free cash flow was $48.6 billion, up from $34.9 billion in the prior quarter and $26.1 billion a year ago, after capital spending of $1.8 billion. Source
• About $20.0 billion returned: About $20.0 billion was returned to shareholders in the quarter through share repurchases and cash dividends. $38.5 billion remained under the authorization before the new addition. Source
• Two market platforms replace prior view: Reporting moves to Data Center and Edge Computing platforms. Data Center will be split into Hyperscale and ACIE sub-markets, reflecting current and future growth drivers. Source

“The buildout of AI factories - the largest infrastructure expansion in human history - is accelerating at extraordinary speed,”

Jensen Huang, founder and CEO of NVIDIA

Guidance

What changed from last quarter

• New guidance: Second-quarter revenue guidance of $91.0 billion, plus or minus 2%, given for the quarter after the one just reported. Source
• New guidance: Second-quarter gross margin and operating expense guidance given, with non-GAAP operating expenses of about $8.3 billion. Source
• Guidance lowered: Full-year fiscal 2027 tax rate range moved to 16.0% to 18.0% from 17.0% to 19.0%. Source
• Guidance raised: Quarterly cash dividend raised from $0.01 to $0.25 per share. Source
• Guidance kept: Guidance continues to exclude any Data Center compute revenue from China. Source
• New: Reporting moves to two market platforms, Data Center and Edge Computing, with Data Center split into Hyperscale and ACIE sub-markets. Source
• New: Non-GAAP measures now include stock-based compensation expense. Historical non-GAAP figures were updated to include it. Source
• New: Additional $80.0 billion share repurchase authorization approved, without expiration. Source

Results and growth drivers

• Revenue rose 85% year on year: Revenue was $81.6 billion, up 20% from the prior quarter and up 85% from a year ago. The prior release had guided first-quarter revenue to $78.0 billion, plus or minus 2%. Source
• Data Center drove most of growth: Data Center revenue was $75.2 billion, up 92% from a year ago and 21% sequentially, driven by the ramp of Blackwell 300 products and demand for networking. Source
• Diluted EPS GAAP and non-GAAP: GAAP diluted EPS was $2.39 and non-GAAP was $1.87, compared with $1.76 and $1.59 in the fourth quarter. GAAP results include equity securities gains. Source
• Equity securities gains lifted GAAP income: Net gains from equity securities were $15.9 billion, driven by unrealized gains in publicly-held and non-marketable holdings. GAAP other income, net totaled $16.4 billion. Source

Market platforms and segments

• Hyperscale share held near half: Hyperscale revenue was $37.9 billion, up 115% year on year. ACIE revenue was $37.4 billion, up 74%, and Hyperscale stayed at about 50% of Data Center revenue. Source
• Networking revenue grew 199%: Data Center networking revenue was $14.8 billion, up 199% from a year ago and 35% sequentially. Compute revenue was $60.4 billion, up 77% from a year ago. Source
• Edge Computing up 29%: Edge Computing revenue was $6.4 billion, up 29% from a year ago and 10% sequentially. Blackwell workstation demand was offset partly by slower consumer PC demand. Source
• No Hopper shipments to China: No Data Center Hopper products were shipped to China in the quarter, compared with $4.6 billion in the first quarter of fiscal 2026. Source

“NVIDIA is uniquely positioned at the center of this transformation as the only platform that runs in every cloud,”

Jensen Huang, founder and CEO of NVIDIA

Products, partners and customers

• Vera Rubin platform announced: Announced the Vera Rubin platform, including the Vera CPU for agentic AI and BlueField-4 STX storage infrastructure for agentic AI factories. Source
• Dynamo 1.0 entered production: Dynamo 1.0 entered production, with management citing inference boosts of up to 7x on Blackwell GPUs and widespread global adoption. Source
• Optics and networking agreements: Multi-year agreements with Coherent, Corning and Lumentum for optics, and a Marvell partnership through NVLink Fusion with silicon photonics collaboration. Source
• Automotive partners expanded: BYD, Geely, Isuzu and Nissan are building level 4-ready vehicles on DRIVE Hyperion. Hyundai, Kia and Uber partnerships were also expanded. Source
• Google Cloud and telecom collaborations: Google Cloud collaboration adds Vera Rubin-powered A5X instances. T-Mobile and Nokia will integrate physical AI on AI-RAN-ready infrastructure. Source

Gross margin and expenses

• Gross margin held near 75%: GAAP gross margin was 74.9% and non-GAAP was 75.0%, approximately flat sequentially, with Blackwell remaining the majority of revenue. Source
• Year-on-year margin gain from H20 base: Gross margin rose from a year ago on lower inventory provisions. The prior year included a $4.5 billion charge for H20 excess inventory and purchase obligations. Source
• Operating expenses up 12% sequentially: GAAP operating expenses were $7.6 billion, up 52% from a year ago and 12% sequentially. Non-GAAP operating expenses were $7.4 billion, up 49% from a year ago. Source
• Expense growth from pay and compute: Higher compensation from employee growth and pay increases, compute and infrastructure costs, and engineering materials for new products drove the expense increase. Source
• GAAP tax rate 16.6%: GAAP effective tax rate was 16.6%, up from a year ago, mainly from a smaller benefit from stock-based compensation tax deductions. Non-GAAP rate was 16.0%. Source

“We have strategically secured inventory and capacity to meet demand beyond the next several quarters.”

Colette Kress, executive vice president and chief financial officer

Demand, inventory and supply commitments

• Inventory and supply commitments increased: Inventory was $25.8 billion, up from $21.4 billion sequentially. Total supply-related commitments were $119.0 billion. Source
• Capacity secured beyond several quarters: Management said inventory and capacity were secured to meet demand beyond the next several quarters. Source
• Cloud service commitments rose: Multi-year cloud service commitments were $30.0 billion, up from $27.0 billion sequentially, to support research and development needs. Source
• Consumer PC demand slowed: Consumer PC demand was slower, tempered by elevated memory and systems prices. Blackwell workstation demand was a driver of the Edge Computing increase. Source

Cash flow and balance sheet

• Operating cash flow reached $50.3 billion: Operating cash flow was $50.3 billion, up from $27.4 billion a year ago and $36.2 billion in the prior quarter, with the sequential rise driven by higher revenue and lower cash taxes. Source
• Free cash flow of $48.6 billion: Free cash flow was $48.6 billion, up from $34.9 billion in the prior quarter and $26.1 billion a year ago, after capital spending of $1.8 billion. Source
• Receivable days fell to 45: Receivables were $40.7 billion, with days sales outstanding of 45, down from 51 sequentially, reflecting collection timing and customer payments received before invoice due dates. Source
• Cash and securities balance: Cash, cash equivalents and marketable debt securities were $50.3 billion, down from $52.4 billion a year ago and up from $49.7 billion a quarter ago. Source

Shareholder returns and capital

• About $20.0 billion returned: About $20.0 billion was returned to shareholders in the quarter through share repurchases and cash dividends. $38.5 billion remained under the authorization before the new addition. Source
• Repurchase payments of $19.3 billion: Cash paid for repurchases of common stock was $19.3 billion in the quarter, compared with $14.1 billion a year ago. Source
• Strategic investment outflows: Purchases of non-marketable securities were $18.6 billion, and purchases of marketable debt and equity securities were $8.0 billion, in the quarter. Source

Reporting framework and non-GAAP change

• Two market platforms replace prior view: Reporting moves to Data Center and Edge Computing platforms. Data Center will be split into Hyperscale and ACIE sub-markets, reflecting current and future growth drivers. Source
• ACIE sub-market defined: ACIE combines AI Clouds, Industrial and Enterprise, and covers AI purpose-built data centers and AI factories across industries and countries. Source
• Stock compensation now in non-GAAP: Non-GAAP measures no longer exclude stock-based compensation from the first quarter of fiscal 2027. Historical non-GAAP information was updated to include it. Source

Coming up, as management said on 20 May 2026

• Cash taxes to rise in second quarter: A substantial increase in cash taxes is expected in the second quarter, from estimated federal and state cash tax payments. Source
• Receivable days expected to normalize: Days sales outstanding is expected to return to more normal levels in the next quarter. Source
• Dividend payment date set: The increased quarterly dividend is scheduled for payment on June 26, 2026. Source

Figures management reported

Risks management discussed

• External: Guidance excludes any Data Center compute revenue from China, and no Hopper products were shipped to China this quarter. Source
• Demand: Consumer PC demand was slower, with management citing elevated memory and systems prices as a tempering factor. Source
• Operational: Inventory and total supply-related commitments increased sharply from the prior quarter, reaching $119.0 billion. Source

Earlier plans management reported on

• Not stated: Historical non-GAAP information was updated to include stock-based compensation expense, as the change was announced in the prior release. Source

Other quarters

• Q2 FY2027 earnings call
• Q4 FY2026 earnings call
• Q3 FY2026 earnings call
• Q2 FY2026 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.