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By Brian Nelson, CFA
Nvidia (NVDA) recently reported first-quarter fiscal 2027 results for the period ending April 26 that beat expectations on both the top and bottom lines. The company showcased record revenue of $81.6 billion (consensus was $79.2 billion), up 85% from the year-ago period, while Data Center revenue also hit a record, up 92% from last year’s quarter. GAAP and non-GAAP gross margins were 74.9% and 75.0%, respectively, while GAAP and non-GAAP earnings per diluted share were $2.39 and $1.87, respectively, the latter increasing 140% and edging out consensus by $0.12 per share. Free cash flow increased to $48.6 billion in the fiscal first quarter, growing from $26.1 billion in last year’s period.
Management had the following to say about the results:
The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed. 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.
In the first quarter of its fiscal year, Nvidia returned a record level of cash to shareholders totaling $20 billion in the form of buybacks and dividends. The board approved an additional $80.0 billion to its share repurchase authorization, which when added to the $38.5 billion remaining under its share repurchase authorization at the end of the quarter, totals $118.5 billion in capital allocated to buybacks. The board also increased its quarterly cash dividend to $0.25 per share of common stock versus $0.01 per share previously.
For the second quarter of fiscal 2027, management expects revenue to be $91 billion +/- 2% (consensus was $87.3 billion), an outlook that doesn’t assume any Data Center compute revenue from China. In the fiscal second quarter, GAAP and non-GAAP gross margins are expected to be flat from the prior sequential quarter at 74.9% and 75.0%, respectively. Nvidia continues to be the prime beneficiary of AI investment, and we continue to like shares in the Best Ideas Newsletter portfolio.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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