Nvidia reported a record Q1 FY27 revenue of USD 81.6 billion, an 85% jump from last year, with 20% sequential growth. The surge was primarily driven by its data center business, which generated a record USD 75.2 billion in revenue.
Nvidia reported a record revenue of USD 81.6 billion for the first quarter of FY27, representing an 85 per cent increase from the same period last year. The financial results showed a 20 per cent sequential growth from the previous quarter.
Data Center Growth Drives Record Quarter
According to Nvidia, the growth was primarily driven by its data center business, which generated a record USD 75.2 billion in revenue during the quarter. This marked a 92 per cent increase from the previous year and a 21 per cent rise from the prior quarter.
Under its previous sub-market classifications, data center compute revenue reached USD 60.4 billion, while data center networking revenue grew 199 per cent year-over-year (YoY) to hit USD 14.8 billion.
New Reporting Structure
The company, in a press release, said that it is now transitioning into a new reporting structure divided into two primary market platforms: Data Center and Edge Computing. The Data Center segment will further split into Hyperscale--covering public clouds and large consumer internet firms--and ACIE, which encompasses AI Clouds, Industrial, and Enterprise. Meanwhile, the Edge Computing platform will track devices processing data for agentic and physical AI, including personal computers, robotics, workstations, and automotive technologies.
CEO's Vision on AI Transformation
"The buildout of AI factories -- the largest infrastructure expansion in human history -- is accelerating at extraordinary speed," said Jensen Huang, founder and CEO of NVIDIA.
"Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries. NVIDIA is uniquely positioned at the center of this transformation as the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced -- from hyperscale data centers to the edge," Huang added.
Detailed Financial Performance
Financially, Nvidia posted a GAAP (Generally Accepted Accounting Principles) gross margin of 74.9 per cent and a non-GAAP gross margin of 75.0 per cent for the quarter. GAAP earnings per diluted share stood at USD 2.39, while non-GAAP earnings per diluted share were reported at USD 1.87.
During the three-month period, Nvidia returned approximately USD 20.0 billion to its shareholders through dividends and share repurchases. Following the conclusion of the quarter, the company authorized an additional USD 80.0 billion for its stock buyback program. Furthermore, the board approved an increase in the quarterly cash dividend from USD 0.01 to USD 0.25 per share, scheduled for payment on June 26, 2026.
Future Outlook for Q2 FY27
Looking ahead to the second quarter of fiscal 2027, Nvidia projected its revenue to reach approximately USD 91.0 billion, plus or minus 2 per cent.
"Revenue is expected to be $91.0 billion, plus or minus 2%. NVIDIA is not assuming any Data Center compute revenue from China in its outlook," the company said.
The company also anticipated second-quarter GAAP and non-GAAP gross margins to remain steady at 74.9 per cent and 75.0 per cent, respectively, while estimating full-year tax rates to fall between 16.0 per cent and 18.0 per cent. (ANI)
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