Key insights
- NVIDIA reported strong Q1 earnings, beating estimates with significant growth in its Data Center business. Q2 guidance also exceeded expectations. Despite the positive results, the stock dipped slightly, suggesting that the market had already priced in high expectations. The substantial dividend increase and buyback announcement are bullish signals for long-term investors.
NVIDIA just reported its Q1 2026 results (fiscal Q1 FY27, quarter ended April 26) and it's another all-time high across the board.
Revenue came in at $81.6 billion, up 85% from a year ago and 20% from last quarter.
Net income hit $58.3 billion — up 211% YoY. Non-GAAP EPS of $1.87 beat the Street's $1.77 estimate by over 5%.
The entire growth story is Data Center, which pulled in $75.2 billion — up 92% YoY.
Hyperscalers and AI cloud providers are absorbing Blackwell GPUs faster than any product ramp in NVIDIA's history. Even networking (InfiniBand, NVLink) surged 199% YoY — customers are buying full AI systems, not just chips.
Gross margins expanded to 74.9% from just 60.5% a year ago, and NVIDIA announced an $80 billion buyback plus raised its quarterly dividend from $0.01 to $0.25 per share (the dividend jump is huge, and a big news for major shareholders).
Q2 guidance came in at $91 billion — well above Wall Street's ~$87B expectation. China remains excluded from guidance entirely after export controls wiped out H20 sales last year.
So why did the stock dip ~1%? Because at this point, beating estimates is the baseline. Wall Street has priced in perfection — and anything short of a shock to the upside barely moves the needle.
Not financial advice. Do your own research.