2026 05 20 Earnings Nvda Q1 Fy2027

Summary

Nvidia reported record Q1 FY2027 revenue of $82B (+85% YoY, +20% QoQ), with data center at $75B (+92% YoY). Management confirmed VeraRubin production shipments begin Q3 2026 and framed Vera CPU as a standalone $200B TAM opportunity. Jensen Huang explicitly dismissed LPX/SRAM inference accelerators as "niche," directly contradicting the CUDA-moat-erosion thesis. Q2 guidance: $91B ±2%.

Transcript

Toshiya Hari: Welcome everyone to NVIDIA's first quarter fiscal year 2027 conference call.

Colette Kress (CFO): Delivered an exceptional quarter. With revenue, operating income, and free cash flow exceeding our prior records. Total revenue of $82 billion was up 85% year over year and 20% sequentially.

Data Center revenue reached $75 billion, up 92% year-over-year and 21% sequentially, driven by Blackwell architecture demand. New business segmentation divides data center into Hyperscale ($38 billion) and ACIE ($37 billion). The number of partner data centers exceeding 10MW nearly doubled in one year to above 80 sites. Sovereign revenue increased over 80% year-over-year across nearly 40 countries.

Grace Blackwell is the fastest training system as well as the lowest token generation cost at inference.

GAAP gross margin was 74.9%, with free cash flow of $49 billion generated. The company increased its quarterly dividend from $0.01 to $0.25 per share and announced an $80 billion share repurchase authorization.

For Q2, total revenue guidance is $91 billion (±2%), with gross margins expected at 74.9% GAAP. Operating expenses projected at approximately $8.5 billion GAAP.

Jen-Hsun Huang (CEO): Our data center business has 2 large parts... hyperscalers... [and] the second category is all of the AI native clouds... regional... all over the place.

NVIDIA is quite unique in the sense that we are the only company that builds all of the technology components.

VeraRubin is going to be even more successful than Grace Blackwell at this point. Every single... frontier model company will jump on VeraRubin.

[On Vera CPU standalone revenue:] The $20 billion Vera CPU projection represents standalone CPU revenue, separate from VeraRubin pricing. Agents require both CPU orchestration and GPU inference capacity, with "billions of agents" anticipated using tools similar to how humans use PCs.

[On competitive inference alternatives:] I expect that LPX and other SRAM based decode focus... accelerators. Will always be will be a niche product for some time.

[Five key highlights:] NVIDIA's unique position running every frontier AI model; presence in all hyperscale clouds; full-stack solutions for diverse infrastructure; edge CUDA deployment; and Vera as a new $200 billion TAM opportunity.

Key financial metrics