The most anticipated earnings of the quarter are in and Nvidia delivered

@nvidia posted record first-quarter fiscal 2027 results on Wednesday, with $NVDA revenue of $81.6 billion beating Wall Street's forecast by a wide margin and signalling that the AI infrastructure spending cycle remains firmly in expansion mode.

Record Revenue and a Data Center Surge

Nvidia's Q1 FY2027 revenue of $81.6 billion came in 85% above the year-ago period and 20% above the prior quarter, topping the average analyst estimate of roughly $79.2 billion. Data Center revenue was the engine, reaching $75.2 billion, up 92% year over year. The segment now accounts for more than 92% of total company sales. Non-GAAP diluted EPS landed at $1.87, above the $1.78 consensus, while GAAP diluted EPS was $2.39. Free cash flow climbed to $48.6 billion for the quarter.

Data Center growth was driven by the continued ramp of Blackwell 300 products alongside strong demand for InfiniBand, Spectrum-X Ethernet, and NVLink solutions. Networking revenue within the segment more than tripled year over year, reaching $14.8 billion. Notably, no Data Center compute revenue from China was recorded during the quarter, compared with $4.6 billion a year earlier, yet the business still accelerated sharply. U.S. export controls and a Chinese push to develop domestic AI hardware have effectively removed Nvidia from that market for now, though CEO Jensen Huang travelled to China alongside President Donald Trump last week, briefly raising hopes of a policy shift. No breakthroughs emerged.

Shareholder Returns and Q2 Outlook

Nvidia returned approximately $20 billion to shareholders during the quarter through buybacks and dividends. The board also approved an additional $80 billion in share repurchase authorisation with no expiration date, and raised the quarterly dividend from $0.01 per share to $0.25 per share, effective May 18, 2026.

For Q2 FY2027, Nvidia guided revenue to $91 billion, well above the roughly $86 billion Wall Street consensus at the time of reporting. The company stated it is not assuming any Data Center compute revenue from China in that outlook, leaving potential upside if restrictions ease. CEO Jensen Huang said in a statement that the AI factory buildout is "accelerating at extraordinary speed," describing it as "the largest infrastructure expansion in human history."

Analysts had flagged that the Q2 guide, more than the Q1 print itself, would be the real signal on whether the AI capex cycle is still compounding. At $91 billion, Nvidia answered that question decisively.

Sources:
Nvidia Newsroom: Financial Results for First Quarter Fiscal 2027
CNBC: Nvidia beats on revenue and guidance, adds $80 billion to buyback plan
Investing.com: Nvidia earnings and guidance beat expectations