NVIDIA delivered record-breaking first-quarter FY27 results, with revenue soaring to $81.6 billion on the back of strong demand for its data centre business and AI-related offerings. The company reported an 85% jump in revenue from the same quarter last year, while quarterly revenue also grew 20% sequentially, driven largely by continued expansion in its data centre operations.The data centre business remained the biggest contributor to the quarter’s performance, bringing in $75.2 billion in revenue. Nvidia said that the segment recorded a 92% increase year-on-year and a 21% rise from the previous quarter. Based on the company’s earlier reporting categories, data centre compute revenue came in at $60.4 billion, while networking revenue climbed 199% from last year to $14.8 billion.Alongside the earnings announcement, Nvidia said that it is changing the way it reports its business segments. The company will now operate under two main platforms: Data Center and Edge Computing.Under the revised structure, the Data Center platform will be divided into Hyperscale and ACIE. Nvidia said Hyperscale will include public cloud providers and large consumer internet companies, while ACIE will cover AI Clouds, Industrial and Enterprise businesses.The company added that the Edge Computing platform will focus on technologies linked to agentic and physical AI, including robotics, personal computers, workstations and automotive products.“The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed,” said Jensen Huang, founder and CEO of NVIDIA.“Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries. NVIDIA is uniquely positioned at the center of this transformation as the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced — from hyperscale data centers to the edge,” Huang added.Nvidia reported a GAAP gross margin of 74.9% for the quarter, while non-GAAP gross margin stood at 75.0%. GAAP diluted earnings per share were reported at $2.39, compared with non-GAAP diluted earnings per share of $1.87.During the quarter, the company returned nearly $20.0 billion to shareholders through dividends and share repurchases. Nvidia also approved an additional $80.0 billion for its share buyback programme after the quarter ended.The board further cleared a rise in the quarterly cash dividend from $0.01 per share to $0.25 per share. The dividend payment is scheduled for June 26, 2026.For the second quarter of fiscal 2027, Nvidia said it expects revenue of around $91.0 billion, with a possible variation of 2% on either side.“Revenue is expected to be $91.0 billion, plus or minus 2%. NVIDIA is not assuming any Data Center compute revenue from China in its outlook,” the company said.The company also said second-quarter GAAP and non-GAAP gross margins are expected to remain at 74.9% and 75.0% respectively. Nvidia estimated its full-year tax rate to be in the range of 16.0% to 18.0%.
