NVIDIA announced its Q1 FY2027 financial results on May 20. Total revenue for the quarter ended April 26 was $81.6 billion, up 85% year over year and up 20% quarter over quarter, setting a company record high. Data center revenue growth of 92% year over year was the key driver. NVIDIA also issued its Q2 FY2027 outlook at $91.0 billion, which excludes revenue from China data centers.
Segment financials: Data center $75.2B, Edge computing $6.4B
Data center revenue in Q1 was $75.2 billion, up 21% quarter over quarter and up 92% year over year, also setting a record high. Of this, data center compute revenue was $60.4 billion (up 77% year over year, +18% quarter over quarter); data center networking revenue was $14.8 billion (up 199% year over year, +35% quarter over quarter). Edge computing revenue (covering PCs, game consoles, workstations, AI-RAN, robotics, and automotive) for Q1 was $6.4 billion, up 10% quarter over quarter and up 29% year over year.
GAAP gross margin was 74.9%, and non-GAAP gross margin was 75.0%. GAAP diluted earnings per share (EPS) was $2.39, and non-GAAP diluted EPS was $1.87 (the difference came from GAAP including $15.9 billion of equity securities non-cash gains). GAAP net profit for Q1 was $58.3 billion, and free cash flow was $48.5 billion. Starting this quarter, NVIDIA adopted a new reporting framework: data center was split into two sub-markets, “hyperscale” and “ACIE,” and edge computing replaced the prior gaming and other sub-segment lines.
Shareholder returns: $80B additional buyback authorization, quarterly dividend raised to $0.25 per share
In Q1 FY2027, NVIDIA returned approximately $20 billion to shareholders in the form of stock repurchases and cash dividends, setting a historical record for a single quarter. As of the end of the quarter, $38.5 billion remained under existing buyback authorizations. On May 18, 2026, the board approved an additional $80 billion of stock repurchase authorization, with no expiration date. NVIDIA also announced that it would raise its quarterly cash dividend from $0.01 per share to $0.25 per share, payable on June 26, 2026, to shareholders of record as of June 4.
Q2 FY2027 official guidance: $91B and exclusion statement for China
NVIDIA’s official guidance for Q2 FY2027 is as follows: revenue is expected to be $91.0 billion (plus or minus 2%). The company stated that this guidance excludes revenue from data center compute in China. GAAP gross margin is expected to be approximately 74.9% (plus or minus 50 bps), and non-GAAP gross margin approximately 75.0%. GAAP operating expenses are expected to be approximately $8.5 billion, and non-GAAP approximately $8.3 billion. NVIDIA expects full-year FY2027 GAAP and non-GAAP tax rates to be between 16.0% and 18.0%.
FAQ
Why does NVIDIA’s Q2 guidance explicitly exclude China data center compute revenue?
NVIDIA’s official statement for Q2 guidance does not include China data center compute revenue, but the financial report does not explain the specific reason. This exclusion reflects the U.S.’s ongoing policy restrictions on exporting AI chips to China. NVIDIA has not disclosed separate revenue figures for its China business.
GAAP EPS of $2.39 is higher than non-GAAP $1.87—does that seem unusual?
GAAP net profit for the quarter ($58.3 billion) was higher than non-GAAP net profit ($45.5 billion) because GAAP included approximately $15.9 billion of equity securities non-cash gains. By convention, non-GAAP measures remove such one-time items to better reflect profitability aligned with underlying business performance.
What are the specific conditions for the additional $80B buyback authorization?
Approved by the board on May 18, 2026, the incremental authorization amount was $80 billion, with no expiration date. As of the end of Q1 FY2027, $38.5 billion remained available under the original repurchase authorizations. Both authorizations have no mandatory constraints regarding the number of shares to repurchase or the timing.
