Quick Stats — Nvidia Q1 FY27 Earnings Results
| Metric | Value |
| Earnings Date | May 20, 2026 — After US market close (~2:30 AM IST, May 21) |
| Actual Revenue | $81.6B — vs $78.9B estimate — Beat by 3.4% — +85% YoY |
| Actual EPS (non-GAAP) | $1.87 — vs $1.75 estimate — Beat by 6.9% — +140% YoY |
| GAAP Net Income | $58.3B — more than tripled YoY |
| Non-GAAP Gross Margin | 75.0% — in line with guided 75.0% ±50 bps |
| Free Cash Flow | $48.6B — record quarter |
| Data Center Revenue | $75.2B — vs $73.1B estimate — Beat by 2.9% — +92% YoY |
| Q2 FY27 Revenue Guidance | $91.0B ±2% — above $86B–$87B consensus |
| Capital Return | $80B new buyback + dividend raised from $0.01 to $0.25 (+25x) |
| Stock Reaction | -1.5% after hours initially — recovered to +1.93% next day |
Nvidia Q1 FY27: Result, Stock Reaction and What Actually Happened
Nvidia reported its Q1 FY27 Nvidia earnings on May 20, 2026, after the US market closed ,available to Indian traders from approximately 2:30 AM IST on May 21. Revenue came in at $81.6B, up 85% year on year and 20% sequentially, with Data Center revenue of $75.2B growing 92% year over year. Non-GAAP EPS of $1.87 beat the $1.75 consensus by 6.9%. Non-GAAP gross margin held at exactly 75.0%, in line with guidance. GAAP net income was $58.3B and free cash flow reached $48.6B, both record figures.
The stock initially dipped approximately 1.5% after hours, before recovering to a positive +1.93% move the next day. The most likely explanation for the muted initial reaction is that the published Q2 consensus of approximately $86B was no longer the relevant benchmark, the buy-side whisper for the Q2 guide was $89–90B. Nvidia guided $91B, meaningfully above published consensus but only marginally above the institutional expectation. This Nvidia earnings report broke the recent beat-and-sell pattern with a positive next-day close, which is itself a notable signal.
Nvidia has beaten EPS estimates in 4 of the last 4 quarters. The average EPS surprise over the last five reports is approximately 6–8%. This quarter’s 6.9% beat is consistent with that pattern.
We covered the key watchpoints heading into this print in our Nvidia Q1 FY27 pre-earnings preview
The Numbers That Actually Mattered in Nvidia Quarterly Results
Data Center Revenue: $75.2B, +92% YoY, Beat Consensus
Data Center revenue reached $75.2 billion, growing 92% year over year and beating the $73.1B analyst estimate by 2.9%. This is the fifth consecutive quarter of Data Center sequential growth from $51.2B in Q3 FY26 to $62.3B in Q4 FY26 to $75.2B in Q1 FY27. Blackwell architecture GPUs drove the majority of that revenue. Data Center now accounts for approximately 90% of Nvidia’s total quarterly revenue, making every other segment a rounding error relative to this line. The one counterpoint: no Data Center Hopper product shipments to China occurred in Q1 FY27, versus $4.6 billion in Q1 FY26, a $4.6B headwind that the rest of the business fully absorbed and then some.
Gross Margin: 75.0% Held, Record Free Cash Flow of $48.6B
Non-GAAP gross margin came in at exactly 75.0%, in line with guidance of 75.0% ±50 bps. GAAP gross margin was 74.9%, also in line. This matters because margin stability at this revenue scale, $81.6B in a single quarter, is the clearest evidence that Nvidia’s pricing power on AI accelerators remains intact despite the architectural transition from Hopper to Blackwell and early Rubin ramp. Operating cash flow surged to $50.3B and free cash flow reached $48.6B, both company records. For context, $48.6B in free cash flow in a single quarter is more than most technology companies generate in an entire year.
Capital Return: $80B Buyback and 25x Dividend Increase
This is the most underreported signal in the Nvidia earnings report and the one that changes how the market should think about NVIDIA’s maturity as a business. The quarterly dividend was raised from $0.01 per share to $0.25 per share, a twenty-five-fold increase. A new $80 billion share repurchase authorization was announced, on top of $38.5 billion already remaining, bringing total buyback capacity to approximately $119 billion. Total capital returned to shareholders in Q1 alone was a record $20 billion. NVIDIA said it plans to return roughly 50% of free cash flow to shareholders this year. Companies in pure-growth phases do not raise dividends 25x. This signals that Nvidia’s leadership believes cash generation is genuinely accelerating and becoming durable, not a one-cycle event.
Quarterly Trend Nvidia
| Quarter | Revenue | YoY Growth | Non-GAAP Gross Margin | Non-GAAP EPS |
| Q1 FY26 | $44.1B | +69% | 78.4% | $0.78 |
| Q2 FY26 | $51.2B | +55% | 73.6% | $1.30 |
| Q3 FY26 | $57.0B | +62% | 73.6% | $1.30 |
| Q4 FY26 | $68.1B | +73% | 75.2% | $1.62 |
| Q1 FY27 | $81.6B | +85% | 75.0% | $1.87 |
Source: Prior 4 quarters from NVIDIA IR and Macrotrends. Q1 FY27 from NVIDIA IR earnings release.
Revenue growth is accelerating, not decelerating. The YoY growth rate has increased every quarter from Q2 FY26 through Q1 FY27. Non-GAAP gross margins stabilised in the 73–75% range after the Blackwell transition. The trend tells a clear story: NVIDIA is compounding at scale.
What Management Said and What It Changes
NVIDIA reported record first-quarter fiscal 2027 results with revenue, operating income, and free cash flow all surpassing prior company highs, as executives said demand for AI infrastructure continued to accelerate across hyperscale cloud providers, AI cloud companies, sovereign customers, and enterprise users. CEO Jensen Huang said AI factory buildout is accelerating at “extraordinary speed” and described agentic AI as already producing work and value across companies and industries, framing demand as multi-sector rather than hyperscale-only.
NVIDIA also deployed $18.6 billion into investments in private companies and infrastructure funds during Q1, with the company disclosing that some of these investors may indirectly purchase or use NVIDIA products through cloud services. This is a structural demand creation strategy, NVIDIA is investing in the ecosystem that will buy its chips.
Management’s tone on China was notably contained, flagging it as a known embedded assumption rather than a new risk. The guidance explicitly assumes no Data Center compute revenue from China, which means any positive China development in Q2 would be pure upside to guidance.
Guidance: Nvidia Q2 FY27
| Guidance Metric | NVIDIA Guidance | Analyst Consensus | Direction |
| Q2 FY27 revenue | $91.0B ±2% | ~$86B published consensus | Beat published by 6% |
| GAAP gross margin | 74.9% ±50 bps | ~74.5% | In line to slight beat |
| Non-GAAP gross margin | 75.0% ±50 bps | ~74.5% | In line to slight beat |
| GAAP operating expenses | ~$8.5B | — | Up from $7.6B in Q1 |
| China Data Center assumption | No compute revenue from China | — | Cautious |
| Full-year shareholder return | ~50% of free cash flow | — | Positive capital return signal |
The buy-side whisper for the Q2 guide was approximately $89–90B. The $91B guidance beat published consensus by a meaningful margin but only marginally exceeded institutional expectations, which explains why the initial after-hours reaction was cautious despite the strength of the guidance.
How Nvidia Q1 FY27 Earnings Impact the Stock: Trader’s Takeaway
Over the past five earnings reports, NVDA’s average next-day move was -2.93%, mostly negative despite strong results. Q1 FY27’s positive +1.93% reaction marks a notable break from that pattern. The beat-and-sell cycle that dominated the last five quarters appears to have broken, at least for this quarter. The combination of the $91B Q2 guide beating published consensus by 6%, the 25x dividend increase, and the $80B buyback authorization gave the market three reasons to respond positively rather than just headline revenue.
Bullish read: If Q2 delivers near the $91B guide and gross margins hold near 75%, the AI infrastructure thesis remains intact and the analyst 12-month targets clustering around $272–$276 come back into view. The Vera Rubin platform shipping in Q3 FY27 is the next major catalyst, early commentary on Rubin demand from the Q1 call would be an additional signal for traders building a longer-dated position.
Bearish read: If China restrictions broaden beyond the current Hopper exclusion to affect Blackwell shipments as well, the $4.6B China headwind that was absorbed in Q1 could become a larger drag in future quarters. GAAP operating expenses rose 52% year over year to $7.6B in Q1, if expense growth continues at this pace while revenue growth moderates, operating leverage deteriorates. Traders should watch $205–210 as the next meaningful support level if Q2 execution or margin guidance disappoints.
For Indian traders, post-earnings price action on NVDA is reflected in CoinDCX US Stock Futures from approximately 2:30 AM IST on May 21, before Indian equity markets open at 9:15 AM IST.
For a full guide on how to trade US Stock Futures from India, see our US Stock Futures trading tutorial.
Earnings Surprise History
In the past five earnings reports, NVDA’s average next-day move was -2.93%, mostly negative despite strong results. Today’s positive 1.93% reaction marks a notable break from that pattern. Nvidia has beaten EPS estimates in 4 of the last 4 quarters, with this quarter’s 6.9% beat, $1.87 vs $1.75 consensus, consistent with recent history. The more important shift is the market reaction: the Q1 FY27 result is the first in five quarters where a strong beat produced a positive follow-through rather than a sell-the-news decline. The $80B buyback, 25x dividend increase, and $91B Q2 guide appear to have been sufficient to break the cycle.
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Also Read: Nvidia Earnings Boost Bitcoin Mining and AI Infrastructure Stocks
FAQs
Q1: Did Nvidia beat earnings in Q1 FY27?
Yes. Nvidia reported Q1 FY27 non-GAAP EPS of $1.87, beating analyst consensus of $1.75 by 6.9%. Revenue came in at $81.6B, beating the $78.9B estimate by 3.4%, up 85% year on year. Data Center revenue of $75.2B also beat the $73.1B estimate. Free cash flow reached a record $48.6B, more than tripling from a year ago.
Q2: What was Nvidia's revenue in Q1 FY27?
NVIDIA's Q1 FY27 revenue surged to $81.6B, up 85% year on year and 20% sequentially. Data Center revenue reached $75.2B, growing 92% year over year and accounting for approximately 90% of total quarterly revenue. Operating cash flow surged to $50.3B and free cash flow reached $48.6B, both company records
Q3: Why did Nvidia stock fall after strong Q1 FY27 results?
Nvidia stock dipped approximately 1.5% after hours initially before recovering to +1.93% the next day. The initial dip reflected that the buy-side whisper for the Q2 guide was approximately $89–90B, the $91B guidance beat published consensus but only marginally exceeded institutional expectations. The subsequent recovery suggests the $80B buyback authorization, 25x dividend increase, and record free cash flow were sufficient to reverse the initial sell-the-news reaction.
Q4: What is Nvidia's guidance after Q1 FY27 earnings?
NVIDIA guided Q2 FY27 revenue to $91.0B ±2%, with GAAP gross margin of 74.9% and non-GAAP gross margin of 75.0%, each ±50 basis points. The outlook assumes no Data Center compute revenue from China. NVIDIA also said it plans to return roughly 50% of free cash flow to shareholders this year, a significant capital return commitment given the $48.6B Q1 free cash flow run rate
Q5: How can Indian traders trade Nvidia stock movement on CoinDCX?
Indian traders can trade NVDA US Stock Futures on CoinDCX using INR funding, no USD conversion, no international bank transfers, and no external brokerage required. Since Nvidia reported after the US market closed, the post-earnings move was visible to Indian traders from approximately 2:30 AM IST on May 21, before Indian equity markets opened at 9:15 AM IST. For a full step-by-step guide, see our US Stock Futures trading tutorial.
Disclaimer
This article is prepared by the CoinDCX Research Team for informational and educational purposes only. It does not constitute financial, investment, or trading advice. Data cited in this article is sourced from publicly available company IR materials, filings, and third-party financial sources available at the time of publication. Past performance is not indicative of future results. Trading US Stock Futures, including NVDA Futures, involves risk, including possible loss of capital. Readers should conduct their own research and consult a qualified financial advisor before making trading decisions. CoinDCX is not liable for any trading decisions made based on this article.
