NVIDIA (NVDA) Q1 FY27 Revenue Hits $81.6B, AI Demand Surges
Tony Kim May 21, 2026 18:17
NVIDIA posts record $81.6B revenue in Q1 FY27, up 85% YoY, driven by soaring AI chip demand. Shares remain steady at $223.47.
NVIDIA (NASDAQ: NVDA) has shattered its own records, reporting $81.6 billion in revenue for the first quarter of fiscal 2027, up 85% from the same quarter last year and 20% sequentially. The surge was driven by explosive demand for AI chips, as the company cements its position as a cornerstone of the AI revolution. Adjusted earnings per share came in at $2.39, a 214% increase year-over-year, far surpassing Wall Street expectations.
The standout performer was NVIDIA's Data Center business, which generated $75.2 billion in revenue, up 92% YoY. CEO Jensen Huang credited the growth to the rapid proliferation of "AI factories," calling it the largest infrastructure expansion in human history. "NVIDIA is uniquely positioned at the center of this transformation," he said, highlighting the company’s dominance in hyperscale data centers and AI-specific processing.
Gross margins also remained strong, with GAAP and non-GAAP margins at 74.9% and 75.0%, respectively. Operating income soared to $53.5 billion, a 147% YoY increase, while net income skyrocketed 211% to $58.3 billion. These results reflect not just revenue growth but operational efficiency, as the company capitalizes on its leadership in high-margin AI and data center technologies.
NVIDIA also announced an aggressive $80 billion addition to its share repurchase program. The company returned $20 billion to shareholders in Q1 through buybacks and dividends, signaling confidence in its long-term growth trajectory. The quarterly dividend was raised from $0.01 to $0.25 per share, payable June 26, 2026.
Looking ahead, NVIDIA projects Q2 FY27 revenue of $91 billion, marking a further 12% sequential increase. Notably, this guidance excludes any revenue from China’s data center market, reflecting ongoing geopolitical risks. Operating expenses are expected to rise to $8.5 billion, driven by R&D investments in AI and edge computing.
Market data as of May 21, 2026, shows NVIDIA shares trading at $223.47, with a market cap of $5.47 trillion. Despite the stock's modest 0.013% movement in the past 24 hours, investor sentiment remains bullish, supported by NVIDIA’s dominant position in the AI chip sector. "These results further validate NVIDIA as the go-to platform for AI workloads," noted a May 20 commentary from analysts.
NVIDIA's ongoing transition to a simplified reporting framework highlights its strategic focus on two core markets: Data Center and Edge Computing. Within Data Center, the company sees growth opportunities in hyperscale platforms and AI-specific infrastructure. Meanwhile, Edge Computing revenue grew 29% YoY to $6.4 billion, spurred by advancements in AI-driven robotics, automotive, and gaming technologies.
For traders, the key takeaway is NVIDIA's ability to consistently exceed expectations while expanding its footprint in high-growth markets. The company's aggressive buybacks and rising dividend underline management’s confidence, making NVDA a compelling long-term play in the AI-driven tech boom. However, risks tied to China and rising operating expenses warrant monitoring in the quarters ahead.
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