Nvidia slips as Q1 results, guidance top estimates; adds $80B share buyback

[Nvidia Corporate Office Logo Santa Clara California]
Robert Way

Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) shares fell fractionally in extended trading on Wednesday after the semiconductor giant posted fiscal first-quarter results and guidance that topped Wall Street's estimates.

For the period ending April 26, the Jensen Huang-led company earned an adjusted $1.87 per share as revenue soared 85% year-over-year to come in at $81.61B.

The company changed its reporting segments, Data Center and Edge Computing, which “better reflects its current and future growth drivers.”

Data Center is comprised of two sub-markets, Hyperscale and ACIE, which is made up of AI clouds, industrial, and enterprise. Hyperscale includes revenue from the public clouds and the world's largest consumer internet companies, while ACIE “addresses NVIDIA’s growth opportunity in diverse AI purpose-built data centers and AI factories across industries and countries.”

Data center revenue flew past expectations, coming in at $75.2B, compared to estimates of $73.48B. Based on the previous reporting, data center revenue was $60.4B, up 77% year-over-year.

Edge Computing revenue was $6.4B, up 10% year-over-year.

Adjusted gross margin came in at 75% for the quarter, in-line with estimates, while it generated $48.55B in free cash flow during the period.

Analysts had expected the company to earn an adjusted $1.75 per share on $79.19B in revenue.

“The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed,” said [https://seekingalpha.com/pr/20523526-nvidia-announces-financial-results-for-first-quarter-fiscal-2027] 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.”

Looking ahead to the fiscal second quarter, Nvidia expects revenue to be $91B, plus or minus 2%. The company also said that it does not expect any revenue from China for the period. Analysts had expected the company to generate $87.3B in revenue.

Adjusted non-GAAP gross margins are expected to be 75%, plus or minus 50 basis points. Adjusted operating expenses are expected to be approximately $8.3B.

In addition to the results, Nvidia added $80B to its share buyback program. Nvidia also raised its quarterly dividend to $0.25 per share, up from a prior $0.01 per share. The next dividend will be paid to all shareholders of record on June 4 on June 26.

Julian Lin [https://seekingalpha.com/author/julian-lin], Investing Group Leader for Best Of Breed Growth Stocks, said the results were exceptional.

“NVDA has shown that the AI trade is very much alive—and evolving,” Lin said via email. The mantra of 'There is not enough compute' is "no longer looks like a relevant comment with the company delivering accelerating and hyperbolic growth at scale,” Lin added.

Jonathan Weber [https://seekingalpha.com/author/jonathan-weber], Investing Group Leader for Cash Flow Club, agreed and said the results were “strong,” and the outlook was “pretty positive as well.”

“While the new $80 billion buyback authorization is equal to just 1.5% of NVIDIA's market capitalization, it's still nice to see the company share its profits with its owners,” Weber added.

The company will host a conference call at 5 p.m. EST to discuss the results.

_(This story has been updated to include additional information.)_

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