Nvidia Reports Record Revenue, $58.3 Billion Profit in Q1, Announces $80 Billion Share Buyback
Nvidia Reports Strong Quarterly Earnings, Surpasses Wall Street Forecasts
Nvidia, the world's most valuable company, reported robust quarterly earnings on Wednesday, exceeding Wall Street forecasts. The company's net profit jumped to $58.3 billion, or $2.39 per share, during the first quarter of fiscal 2027, ending April 26. This represents a significant increase from the $18.8 billion reported in the year-earlier period, more than tripling in value.
Nvidia's revenue reached a record $81.62 billion during the first quarter, a surge of 85% from $44.01 billion in the year-on-year period. This growth was driven by robust demand for Nvidia's high-end artificial intelligence (AI) chips. Excluding one-time items, Nvidia earned $1.76 per share, exceeding analyst estimates of $1.75 per share earnings and $78.91 billion revenue, according to a poll by FactSet.
| Nvidia Revenue Comparison | Q1 2027 | Q1 2026 | YoY Change |
|---|---|---|---|
| Revenue | $81.62 billion | $44.01 billion | 85% |
| Data Center Revenue | $75.2 billion | $39.1 billion | 92% |
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Nvidia's data center business, which sells the processors powering AI systems at tech giants and technology companies worldwide, led the quarter's performance. Data center revenue hit a record $75.2 billion, up 92% from a year ago. For the current quarter, Nvidia projected revenue of $91 billion, plus or minus 2%, which is slightly above analyst forecasts of $87.29 billion.
The company also disclosed $30 billion worth of cloud computing agreements, up sequentially from $27 billion, which it said were to help its research and development efforts. Nvidia's CEO, Jensen Huang, aimed to assure investors that the company can maintain its blockbuster growth with the help of a broad base of customers and new products.
| Nvidia Cloud Computing Agreements | Q2 2027 | Q1 2027 | YoY Change |
|---|---|---|---|
| Cloud Computing Agreements | $30 billion | $27 billion | 11% |
In addition to its strong quarterly earnings, Nvidia also announced plans to return some money to shareholders. The company authorized a massive share buyback plan of $80 billion worth of stock and increased its quarterly cash dividend to 25 cents per share from 1 cent. On Wednesday, Nvidia stock price ended 1.30% higher at $223.47 apiece, with a market capitalisation of $5.41 trillion. However, in extended trading, Nvidia shares declined 1.26%.
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Investor Takeaway
Investors should consider Nvidia's strong quarterly earnings and record revenue as a positive indicator for the company's future growth.
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