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NVIDIA Q1 Earnings Beat on Blackwell Ramp-Up, Data Center Strength
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Key Takeaways
NVIDIA posted Q1 non-GAAP EPS of $1.87 on revenues of $81.62B, beating expectations.
NVDA reshaped reporting into Data Center and Edge Computing, highlighting Hyperscale and ACIE demand.
NVIDIA expects Q2 revenues to be $91B ( /-2%) and sees non-GAAP gross margin around 75%.
NVIDIA Corporation (NVDA - Free Report) delivered a strong first-quarter fiscal 2027 report, with results topping expectations on continued AI infrastructure demand. The company reported non-GAAP earnings of $1.87 per share, beating the Zacks Consensus Estimate by 5.65%. Non-GAAP earnings per share grew 140% year over year and 18% sequentially.
Revenues surged 85% year over year and 20% sequentially to $81.62 billion and surpassed the consensus mark by 3.63%. A standout metric was Data Center market platform performance, which continued to report strong growth, reflecting broad-based AI infrastructure buildouts across hyperscale and an expanding mix of enterprise, industrial and sovereign customers.
NVDA’s New Platform Reporting Sharpens Demand Signals
NVIDIA used the first quarter to formalize a reporting framework built around two market platforms — Data Center and Edge Computing. Within Data Center, it now breaks out Hyperscale and AI Clouds, Industrial and Enterprise (ACIE), a change management framed as a better reflection of where growth is coming from and how customers are deploying AI.
Data Center revenues jumped 92% year over year and 21% sequentially to $75.25 billion, driven by the continued ramp of Blackwell-based systems and strength in networking. Within Data Center, Hyperscale revenues soared 115% year over year and 12% sequentially to $37.87 billion, while ACIE revenues surged 74% year over year and 31% sequentially to $37.38 billion.
During the first quarter earnings call, management emphasized that the customer mix is broadening beyond hyperscalers, with growth in AI clouds, enterprise deployments and sovereign initiatives contributing meaningfully. The company also reiterated that its outlook does not assume any Data Center compute revenues from China, keeping a conservative stance on that market’s near-term contribution.
Edge Computing revenues increased 29% year over year and 10% sequentially to $6.37 billion, driven by workstation demand even as consumer PC trends remained more mixed.
NVIDIA Corporation Price, Consensus and EPS Surprise
NVIDIA Segment Mix Stayed Heavily Tilted to Compute
NVIDIA’s operating segments continued to show that growth remains centered in Compute & Networking. Segment revenues were $74.55 billion, up 88% year over year and 21% sequentially, underscoring the ongoing scale-up of accelerated computing systems and associated networking.
Graphics revenues reached $7.07 billion, up 58% year over year and 9% sequentially. NVIDIA stated that the growth was supported by demand in professional and workstation use cases. The company noted that workstation momentum helped offset softer pockets in consumer-related demand.
NVDA’s Non-GAAP Profitability Stays Elevated
NVIDIA’s non-GAAP gross margin of 75% reflects a robust improvement from the year-ago quarter’s 60.8%. The robust gross margin expansion was supported by a positive mix of Blackwell-based systems and a year-over-year benefit from lower inventory provisions compared to the year-ago quarter. Sequentially, non-GAAP gross margin contracted 10 basis points.
Non-GAAP operating expenses were $7.45 billion, up 49% year over year and 12% sequentially, reflecting higher compensation and benefits from employee growth and pay increases, along with higher compute and infrastructure costs.
Even with that investment pace, non-GAAP operating income reached $53.78 billion, up 147% year over year and 21% sequentially. The non-GAAP operating margin of 65.9% reflected robust improvement from the year-ago quarter’s 45.9% and the previous quarter’s 65.3%.
NVIDIA’s Balance Sheet Signals Supply Positioning
NVDA ended the quarter with accounts receivable of $40.71 billion and days sales outstanding of 45 days, which management attributed to the favorable timing of collections and customer payments received ahead of invoice due dates. The company expects DSO to return to more typical levels in the next quarter.
Inventory stood at $25.8 billion, up from $21.4 billion in the previous quarter, reflecting a deliberate strategy to secure supply to meet demand beyond the near term. Total supply-related commitments were $119 billion, reinforcing the scale of planning embedded in NVIDIA’s production and delivery ramp.
As of April 26, 2026, NVDA’s cash, cash equivalents and marketable securities totaled $80.6 billion, up from $62.6 billion as of Jan. 25. As of April 26, the total long-term debt was $7.47 billion, flat when compared with long-term debt as of Jan. 25.
During the fiscal first quarter, NVIDIA generated $50.3 billion in operating cash flow and $48.6 billion in free cash flow. In the fiscal first quarter, the company returned $243 million to its shareholders through dividend payouts and repurchased stocks worth $19.3 billion.
NVIDIA’s Guidance Sets a Bigger Q2 Bar
For the second quarter of fiscal 2027, NVIDIA anticipates revenues to be $91 billion (+/-2%), higher than the Zacks Consensus Estimate of $84.1 billion.
The non-GAAP gross margin is projected to be 75% (+/-50 bps). Non-GAAP operating expenses are estimated at $8.3 billion.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has been revised upward by 47 cents to $58.94 per share in the past seven days, suggesting an increase of 611% from fiscal 2025’s reported figure. Micron Technology shares have surged 155.1% year to date (YTD).
The Zacks Consensus Estimate for Broadcom’s fiscal 2026 earnings has moved northward by 2 cents to $11.47 per share over the past seven days and calls for a year-over-year jump of 68.2%. Broadcom shares have soared 20.6% YTD.
The Zacks Consensus Estimate for Texas Instruments’ 2026 earnings has moved northward by 20.3% to $7.69 per share in the past 30 days, implying a year-over-year improvement of approximately 41.1%. TXN shares have risen 75.8% YTD.
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NVIDIA Q1 Earnings Beat on Blackwell Ramp-Up, Data Center Strength
Key Takeaways
NVIDIA Corporation (NVDA - Free Report) delivered a strong first-quarter fiscal 2027 report, with results topping expectations on continued AI infrastructure demand. The company reported non-GAAP earnings of $1.87 per share, beating the Zacks Consensus Estimate by 5.65%. Non-GAAP earnings per share grew 140% year over year and 18% sequentially.
Revenues surged 85% year over year and 20% sequentially to $81.62 billion and surpassed the consensus mark by 3.63%. A standout metric was Data Center market platform performance, which continued to report strong growth, reflecting broad-based AI infrastructure buildouts across hyperscale and an expanding mix of enterprise, industrial and sovereign customers.
NVDA’s New Platform Reporting Sharpens Demand Signals
NVIDIA used the first quarter to formalize a reporting framework built around two market platforms — Data Center and Edge Computing. Within Data Center, it now breaks out Hyperscale and AI Clouds, Industrial and Enterprise (ACIE), a change management framed as a better reflection of where growth is coming from and how customers are deploying AI.
Data Center revenues jumped 92% year over year and 21% sequentially to $75.25 billion, driven by the continued ramp of Blackwell-based systems and strength in networking. Within Data Center, Hyperscale revenues soared 115% year over year and 12% sequentially to $37.87 billion, while ACIE revenues surged 74% year over year and 31% sequentially to $37.38 billion.
During the first quarter earnings call, management emphasized that the customer mix is broadening beyond hyperscalers, with growth in AI clouds, enterprise deployments and sovereign initiatives contributing meaningfully. The company also reiterated that its outlook does not assume any Data Center compute revenues from China, keeping a conservative stance on that market’s near-term contribution.
Edge Computing revenues increased 29% year over year and 10% sequentially to $6.37 billion, driven by workstation demand even as consumer PC trends remained more mixed.
NVIDIA Corporation Price, Consensus and EPS Surprise
NVIDIA Corporation price-consensus-eps-surprise-chart | NVIDIA Corporation Quote
NVIDIA Segment Mix Stayed Heavily Tilted to Compute
NVIDIA’s operating segments continued to show that growth remains centered in Compute & Networking. Segment revenues were $74.55 billion, up 88% year over year and 21% sequentially, underscoring the ongoing scale-up of accelerated computing systems and associated networking.
Graphics revenues reached $7.07 billion, up 58% year over year and 9% sequentially. NVIDIA stated that the growth was supported by demand in professional and workstation use cases. The company noted that workstation momentum helped offset softer pockets in consumer-related demand.
NVDA’s Non-GAAP Profitability Stays Elevated
NVIDIA’s non-GAAP gross margin of 75% reflects a robust improvement from the year-ago quarter’s 60.8%. The robust gross margin expansion was supported by a positive mix of Blackwell-based systems and a year-over-year benefit from lower inventory provisions compared to the year-ago quarter. Sequentially, non-GAAP gross margin contracted 10 basis points.
Non-GAAP operating expenses were $7.45 billion, up 49% year over year and 12% sequentially, reflecting higher compensation and benefits from employee growth and pay increases, along with higher compute and infrastructure costs.
Even with that investment pace, non-GAAP operating income reached $53.78 billion, up 147% year over year and 21% sequentially. The non-GAAP operating margin of 65.9% reflected robust improvement from the year-ago quarter’s 45.9% and the previous quarter’s 65.3%.
NVIDIA’s Balance Sheet Signals Supply Positioning
NVDA ended the quarter with accounts receivable of $40.71 billion and days sales outstanding of 45 days, which management attributed to the favorable timing of collections and customer payments received ahead of invoice due dates. The company expects DSO to return to more typical levels in the next quarter.
Inventory stood at $25.8 billion, up from $21.4 billion in the previous quarter, reflecting a deliberate strategy to secure supply to meet demand beyond the near term. Total supply-related commitments were $119 billion, reinforcing the scale of planning embedded in NVIDIA’s production and delivery ramp.
As of April 26, 2026, NVDA’s cash, cash equivalents and marketable securities totaled $80.6 billion, up from $62.6 billion as of Jan. 25. As of April 26, the total long-term debt was $7.47 billion, flat when compared with long-term debt as of Jan. 25.
During the fiscal first quarter, NVIDIA generated $50.3 billion in operating cash flow and $48.6 billion in free cash flow. In the fiscal first quarter, the company returned $243 million to its shareholders through dividend payouts and repurchased stocks worth $19.3 billion.
NVIDIA’s Guidance Sets a Bigger Q2 Bar
For the second quarter of fiscal 2027, NVIDIA anticipates revenues to be $91 billion (+/-2%), higher than the Zacks Consensus Estimate of $84.1 billion.
The non-GAAP gross margin is projected to be 75% (+/-50 bps). Non-GAAP operating expenses are estimated at $8.3 billion.
NVDA’s Zacks Rank and Other Stocks to Consider
Currently, NVIDIA carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks worth considering in the broader Zacks Computer and Technology sector are Micron Technology (MU - Free Report) , Broadcom (AVGO - Free Report) and Texas Instruments (TXN - Free Report) . Micron Technology sports a Zacks Rank #1 (Strong Buy) at present, while Broadcom and Texas Instruments carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has been revised upward by 47 cents to $58.94 per share in the past seven days, suggesting an increase of 611% from fiscal 2025’s reported figure. Micron Technology shares have surged 155.1% year to date (YTD).
The Zacks Consensus Estimate for Broadcom’s fiscal 2026 earnings has moved northward by 2 cents to $11.47 per share over the past seven days and calls for a year-over-year jump of 68.2%. Broadcom shares have soared 20.6% YTD.
The Zacks Consensus Estimate for Texas Instruments’ 2026 earnings has moved northward by 20.3% to $7.69 per share in the past 30 days, implying a year-over-year improvement of approximately 41.1%. TXN shares have risen 75.8% YTD.