Nvidia (NASDAQ: NVDA) delivered its fiscal first quarter of 2027 results after the bell on Wednesday evening, posting revenue of $81.62 billion, a figure that exceeded analyst forecasts of approximately $78.8 billion and marked a stunning 85% increase year over year.
Earnings per share came in at $1.87 on a non-GAAP basis, well ahead of the consensus estimate of $1.77 and extending the chipmaker’s run of quarterly outperformance.
The data centre division remains the core engine of the business, generating $75.25 billion in revenue during the quarter, which represents a 92% increase compared to the same period last year and accounts for around 92% of the company’s total sales. Within that segment, networking revenue surged 199% year over year to $14.8 billion, driven by accelerating adoption of InfiniBand and NVLink solutions as hyperscalers continue their aggressive buildout of AI infrastructure.
“The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed,” Nvidia chief executive Jensen Huang said in a statement. Huang closed the earnings call with characteristic conviction, telling analysts that “demand has gone parabolic” and attributing the acceleration to the arrival of what he described as “Agentic AI,” a phase of artificial intelligence development where systems perform productive real-world tasks autonomously.
Net income attributable to shareholders reached $58.3 billion for the quarter, more than tripling from the equivalent period twelve months ago. Gross margin improved significantly, rising to 75% from 60.8% a year earlier, reflecting not just volume growth but the improved cost structure of Nvidia’s Blackwell 300 architecture products. The company also announced a significant increase to its share buyback programme, adding $80 billion to the existing authorisation.
Despite the blockbuster numbers, the stock slid in after-hours trading, a pattern that has become familiar with Nvidia. Investors have priced extraordinary growth into the shares at any given point, meaning even outperformance fails to generate the kind of immediate upside that once defined the stock’s reaction to earnings day. The share price had already gained 13.7% from its February lows through May 18 ahead of this report.
Analysts at Wedbush had forecast another beat, pointing to healthy capital expenditure commitments from major cloud providers and Nvidia’s unmatched position as the supplier of choice for frontier AI model training. Gene Munster of Deepwater Asset Management described the revenue acceleration as “remarkable” while acknowledging that China-related noise remains a background complication for the company’s international sales story.
The Vera Rubin platform, Nvidia’s next major AI system following the current Blackwell generation, will be watched closely as the company begins transitioning its product line. Forward guidance commentary on supply chains and the pace of Vera Rubin adoption will likely determine where the stock trades in the weeks ahead.
At current multiples, Nvidia remains one of the most expensive large-cap technology names in the market. The sustained pace of data centre investment from Amazon, Microsoft, Google, and Meta provides a strong structural underpinning, but any slowdown in hyperscaler capital spending commitments remains the single largest risk to Nvidia’s premium valuation over the medium term.
