Daijiworld Media Network – New Delhi
New Delhi, May 21: NVIDIA reported record-breaking first-quarter FY27 financial results, with revenue surging to $81.6 billion, driven by explosive growth in its data centre and artificial intelligence businesses.
The company posted an 85 per cent increase in revenue compared to the same quarter last year, while quarterly revenue also rose 20 per cent sequentially, reflecting continued global demand for AI infrastructure and computing technologies.
NVIDIA’s data centre business remained the biggest contributor to its earnings, generating $75.2 billion in revenue during the quarter. The segment recorded a 92 per cent year-on-year growth and a 21 per cent rise compared to the previous quarter.
Based on NVIDIA’s earlier reporting structure, data centre compute revenue stood at $60.4 billion, while networking revenue jumped 199 per cent from last year to reach $14.8 billion.
Alongside the earnings announcement, NVIDIA revealed a restructuring of its business reporting model. The company said it will now operate under two major platforms — Data Center and Edge Computing.
Under the revised structure, the Data Center platform will be split into Hyperscale and ACIE segments. Hyperscale will include public cloud providers and large internet companies, while ACIE will cover AI Clouds, Industrial and Enterprise businesses.
The new Edge Computing platform will focus on technologies linked to agentic and physical AI, including robotics, personal computers, workstations and automotive products.
Commenting on the results, NVIDIA founder and CEO Jensen Huang said the global expansion of AI infrastructure was accelerating rapidly.
“The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed,” Huang said.
“Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries. NVIDIA is uniquely positioned at the centre 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 centres to the edge,” he added.
The company reported a GAAP gross margin of 74.9 per cent for the quarter, while non-GAAP gross margin stood at 75.0 per cent.
GAAP diluted earnings per share were reported at $2.39, while non-GAAP diluted earnings per share stood at $1.87.
During the quarter, NVIDIA returned nearly $20 billion to shareholders through dividends and share repurchases. The company also approved an additional $80 billion for its share buyback programme after the quarter ended.
Its board further approved a sharp increase 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 projected revenue of around $91 billion, with a variation margin of two per cent on either side.
The company clarified that its guidance does not include any data centre compute revenue from China.
NVIDIA also said its second-quarter GAAP and non-GAAP gross margins are expected to remain at 74.9 per cent and 75.0 per cent respectively, while its estimated full-year tax rate is projected between 16 per cent and 18 per cent.