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    NVDA
    Earnings call· Apr 2026(Q1 FY27)

    NVIDIA Q1 FY27 earnings call NVDA

    May 20, 2026 Source

    Executive summary

    NVIDIA Q1 FY27 — Blackwell Ramp and Vera CPU Launch Drive Record Results

    NVIDIA delivered an extraordinary Q1 FY27, driven by the rapid adoption of its Blackwell architecture and the emergence of agentic AI. The company achieved record revenue and free cash flow, while also significantly increasing its capital return to shareholders. Management highlighted the successful ramp of Blackwell systems across diverse customer bases and the strategic entry into the CPU market with Vera, positioning NVIDIA at the center of the evolving AI and physical AI landscape.

    Highlights

    5

    • Total revenue reached a record $82 billion, up 85% year-over-year and 20% sequentially.

    • Data Center revenue was $75 billion, increasing 92% year-over-year and 21% sequentially, driven by Blackwell architecture.

    • Generated record free cash flow of $49 billion, up from $35 billion in Q4 FY26.

    • Increased quarterly dividend from $0.01 to $0.25 per share, demonstrating confidence in long-term free cash flow.

    • Announced a new $80 billion share repurchase authorization, adding to the $39 billion remaining on the current plan.

    Concerns

    3

    • Uncertainty regarding H200 revenue from China-based customers, with no revenue included in the outlook due to import restrictions.

    • Consumer demand in Edge Computing fell modestly due to higher memory and system prices.

    • Days sales outstanding (DSO) is expected to return to the mid-50s in Q2 FY27, up from 45 days in Q1 FY27.

    Guidance & targets

    15
    CategoryTargetConfidence
    Total Revenue
    $91 billion, plus or minus 2%
    high materiality
    High
    GAAP Gross Margin
    74.9%, plus or minus 50 basis points
    medium materiality
    High
    Non-GAAP Gross Margin
    75%, plus or minus 50 basis points
    medium materiality
    High
    Full-year Gross Margins
    Mid-70s
    medium materiality
    High
    GAAP Operating Expenses
    Approximately $8.5 billion
    medium materiality
    High
    Non-GAAP Operating Expenses
    Approximately $8.3 billion
    medium materiality
    High
    Full-year OpEx Growth
    Upper 40s on a year-over-year basis
    medium materiality
    High
    Full-year GAAP and Non-GAAP Tax Rates
    Between 16% and 18%
    low materiality
    High
    Blackwell and Rubin Revenue
    $1 trillion
    high materiality
    High
    Share Repurchase Authorization
    $80 billion
    high materiality
    High
    Capital Return to Shareholders
    Roughly 50% of free cash flow
    high materiality
    High
    Quarterly Dividend
    $0.25 per share
    high materiality
    High
    Vera Rubin Production Shipments
    Commence in the second half of this year, starting in Q3
    high materiality
    High
    Vera CPU Revenue
    Nearly $20 billion
    high materiality
    High
    AI Infrastructure Spending
    $3 trillion to $4 trillion annually
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Data Center
    Driven by sustained strength in Blackwell architecture and demand for GB300 NVL72. InfiniBand grew more than 4x year-over-year.
    Computing Revenue: $60 billionComputing Revenue Growth YoY: 77%Networking Revenue: $15 billionNetworking Revenue Growth YoY: nearly tripled
    		$75 billion92%21%—
    Data Center - Hyperscale
    Includes revenue from public cloud and the world's largest consumer Internet companies.
    Percentage of Data Center Revenue: approximately 50%
    		$38 billion—12%—
    Data Center - ACIE
    Incorporates AI clouds, industrial, and enterprise. NVIDIA AI infrastructure is now deployed across nearly 40 countries.
    AI Cloud Revenue Growth YoY: more than tripledSovereign Revenue Growth YoY: 80%
    		$37 billion—31%—
    Edge Computing
    Robust Blackwell workstation demand was a strong contributor. Consumer demand fell modestly due to higher memory and system prices.
    		$6.4 billion29%10%—

    Operational metrics

    20
    Total Revenue
    $82 billion+85% YoY, +20% QoQ
    Q1 FY27

    Marks the third consecutive quarter of year-over-year acceleration and 14th straight quarter of sequential growth.

    Sequential Revenue Increase
    $13.5 billionrecord
    Q1 FY27

    Record sequential revenue increase.

    GAAP Gross Margin
    74.9%largely flat sequentially
    Q1 FY27

    Blackwell systems continued to account for most shipments.

    Non-GAAP Gross Margin
    75%largely flat sequentially
    Q1 FY27

    Blackwell systems continued to account for most shipments.

    GAAP Operating Expenses Growth
    12%sequentially
    Q1 FY27

    Primarily due to higher compensation and an increase in compute and infrastructure costs.

    Non-GAAP Operating Expenses Growth
    12%sequentially
    Q1 FY27

    Primarily due to higher compensation and an increase in compute and infrastructure costs.

    Non-GAAP Effective Tax Rate
    16%below prior outlook
    Q1 FY27

    Due to favorable geographic mix.

    Days Sales Outstanding (DSO)
    45 days
    Q1 FY27

    Due to favorable timing of collections; expected to return to mid-50s in Q2.

    Total Supply (inclusive of inventory purchase commitments and prepaid)
    $145 billionincreased
    Q1 FY27

    Securing sufficient supply to support customer growth.

    Physical AI Revenue
    Exceeding $9 billion
    Last 12 months

    Physical AI continues to gain momentum.

    H100 Cloud Pricing
    20%up
    YTD

    Reflects rising value of NVIDIA AI infrastructure.

    A100 Cloud Pricing
    15%up
    YTD

    Reflects rising value of NVIDIA AI infrastructure.

    Partner Data Centers (>10MW)
    80+ sitesnearly doubled in 1 year
    Q1 FY27

    Customers have enabled rapid stand-up of AI compute capacity.

    Vera CPU Performance per Core
    Up to 1.5x fastervs x86-based alternatives
    Future

    Built on custom ARM cores and codesigned with Rubin GPUs.

    Vera CPU Performance per Watt
    2xvs x86-based alternatives
    Future

    Built on custom ARM cores and codesigned with Rubin GPUs.

    Vera CPU Density per Rack
    4xvs x86-based alternatives
    Future

    Built on custom ARM cores and codesigned with Rubin GPUs.

    Vera Rubin Inference Throughput
    Up to 35x highervs Blackwell
    Future

    By integrating 7 purpose-built chips across 5 accelerated racks.

    Vera Rubin AI Factory Revenue
    Up to 10x greatervs Blackwell
    Future

    By integrating 7 purpose-built chips across 5 accelerated racks.

    GB300 Throughput Increase
    2.7xvs 6 months ago
    Past 6 months

    Driven by full stack innovations, sweeping MLPerf inference benchmarks.

    GB300 Cost per Token Reduction
    60%vs 6 months ago
    Past 6 months

    Driven by full stack innovations, sweeping MLPerf inference benchmarks.

    Industry KPIs

    9
    MetricValueDetails
    Ai data center revenue$75 billionUSD
    Market share commentaryIncreasingshare
    Fab capacity utilization80+ sitessites
    Wfe industry spend outlook$1 trillionUSD
    Design wins socket pipelineMultiplecount
    Inventory channel inventory$145 billionUSD
    Node platform ramp scheduleBlackwell, Vera Rubinplatform
    End market segment revenue mix$75 billionUSD
    Strategic supply agreements customer prepayments$145 billionUSD

    Product announcements

    2
    ProductTypeDetails
    Vera Rubinlaunch
    Vera CPUlaunch

    Deals & partnerships

    7
    OpenAICollaboration

    GPT-5.5 was codesigned for, trained with, and served on Blackwell. OpenAI's Codex is a harness around GPT-5.5 model.

    MicrosoftCollaboration

    Microsoft's Fairwater, the world's most powerful AI data center, is now live, ahead of schedule, powered by hundreds of thousands of Blackwell GPUs.

    AWSCollaboration

    Starting this year, AWS will add more than 1 million Blackwell and Rubin GPUs and are collaborating on Spectrum Networking.

    GoogleCollaboration

    Blackwell will be offered to customers in the cloud, including confidential computing capability. Google's A5X bare metal instances can support up to 960,000 Rubin GPUs across multiple sites.

    AnthropicStrategic Partnership

    Deepened collaboration and strategic partnership to expand their compute capacity through AWS, Azure, CoreWeave, SpaceXAI and more.

    UberPartnershipby 2028

    Partnership will power the robotaxi fleet across nearly 30 cities and 4 continents by 2028.

    Cadence, Synopsys, Siemens, AdobeCollaboration

    Working closely to accelerate all of the world's tools to run on CUDA, as agents use these tools.

    Risks & headwinds

    3
    China H200 Revenue UncertaintyQ2 FY27 and beyond

    No revenue included in outlook

    Mitigation: Management is uncertain if any imports will be allowed into the country, and has not included any China data center compute revenue in its outlook.

    Consumer Demand Decline in Edge ComputingQ1 FY27

    Modest fall

    Mitigation: Attributed to higher memory and system prices.

    Supply ChallengesOngoing

    Not immune

    Mitigation: Company is confident in its ability to support growth opportunities through intense focus, scale, and long-standing partnerships with critical suppliers, increasing total supply to $145 billion.

    Q&A highlights

    6

    What is the philosophy behind the new segmentation, competitive differences between segments, and the role of the new CPU in these segments?

    Jensen explained the new segmentation (Hyperscale, ACIE, Edge Computing) reflects the diverse nature of AI applications, deployment environments, and go-to-market strategies. He emphasized NVIDIA's unique full-stack, co-designed approach that caters to these varied needs, from hyperscalers to enterprises and robotic systems. The CPU plays a role in agentic AI orchestration.

    “NVIDIA is quite unique in the sense that we are the only company that builds all of the technology components. We build it in an extreme co-design way in a complete end-to-end way, in a full stack way.”

    asked by Joseph Moore · answered by Jen-Hsun Huang

    2 min read6 chapters

    Detailed Narrative

    01

    New Reporting Framework for Market Platforms

    NVIDIA introduced a new reporting framework to better reflect its current and future growth drivers, segmenting its business into two market platforms: Data Center and Edge Computing. Within Data Center, two submarkets are now reported: Hyperscale (public cloud and large consumer internet companies) and ACIE (AI clouds, industrial, and enterprise). This new structure aims to provide clearer insights into the diverse applications and deployment environments for NVIDIA's technology.

    02

    Blackwell Architecture's Rapid Adoption

    The Blackwell architecture experienced the fastest product ramp in NVIDIA's history, with GB300 NVL72 seeing strong demand from frontier model builders and hyperscalers. Key deployments include Microsoft's Fairwater AI data center, powered by hundreds of thousands of Blackwell GPUs, and AWS's plan to add over 1 million Blackwell and Rubin GPUs. This widespread adoption underscores Blackwell's position as a leading AI computing platform.

    03

    Strategic Entry into the CPU Market with Vera

    NVIDIA is making a significant entry into the CPU market with Vera, a CPU purpose-built for agentic AI. This initiative opens a new $200 billion Total Addressable Market (TAM) for the company, a segment it had not previously addressed. Vera is designed to deliver up to 1.5x faster performance per core, 2x performance per watt, and 4x density per rack compared to x86-based alternatives, with production shipments slated to begin in Q3.

    04

    Expanding AI Infrastructure Market Opportunity

    The build-out of AI factories is accelerating at an unprecedented🌐 pace, with AI infrastructure spending projected to reach $3 trillion to $4 trillion annually by the end of the decade. This growth is fueled by the transition of hyperscale workloads to GPU-based computing and the inflection in adoption of AI-native products and services. The value of NVIDIA AI infrastructure is rising, as evidenced by H100 cloud pricing increasing 20% year-to-date.

    05

    Agentic AI and Physical AI Momentum

    Agentic AI, characterized by reasoning and autonomous actions, is driving new growth opportunities, with Vera CPU designed to handle orchestration while GPUs perform the core 'thinking.' Beyond data centers, NVIDIA is seeing significant momentum in physical AI, which generated over $9 billion in revenue in the last 12 months. Partnerships, such as with Uber for robotaxi fleets, highlight the expansion into autonomous and robotic systems operating in the physical world.

    06

    Supply Chain Management and Capital Allocation Strategy

    NVIDIA increased its total supply, including inventory purchase commitments and prepaid, to $145 billion to meet the incredible demand. The company's capital allocation strategy prioritizes R&D and strategic investments to cultivate its ecosystem and strengthen market position. This is complemented by a substantial increase in its quarterly dividend to $0.25 per share and a new $80 billion share repurchase authorization, reflecting confidence in long-term free cash flow.

    AI-generated summary of the company’s earnings call. Not investment advice.