Key Takeaways:
- Nvidia Q1 revenue rose 85% to $81.6B, accelerating from the prior quarter
- Board approved $80B in buybacks and raised the dividend 25-fold to $0.25
- Data center revenue jumped 92% to $75.2B, driven by AI infrastructure buildout
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Nvidia revenue surges 85% to $81.6B as AI demand accelerates
Nvidia reported fiscal first-quarter revenue of $81.6 billion, up 85% from a year earlier and accelerating from the prior quarter's pace.
"We returned a record $20 billion to our shareholders while executing strategic investments, both upstream supply chain and downstream go to market ecosystem," Chief Financial Officer Colette Kress said on the earnings call.
Net income more than tripled to $58.3 billion, while non-GAAP earnings per share rose 140%. Data center revenue, the engine of Nvidia's AI business, climbed 92% to $75.2 billion, with sales to the largest cloud providers more than doubling. Networking revenue within the segment surged 199%, reflecting a full-rack buildout spanning fabrics and switches alongside chips. Free cash flow reached $48.6 billion in the quarter, nearly double the $26.1 billion from a year earlier. Non-GAAP gross margin held at 75%.
The board authorized an additional $80 billion in share repurchases, stacking on top of $38.5 billion remaining under the prior program, and raised the quarterly dividend 25-fold to $0.25 per share. Nvidia returned $20 billion to shareholders in the quarter through buybacks and dividends. Management said it intends to return about half of its free cash flow to shareholders this year.
Nvidia guided for second-quarter revenue of roughly $91 billion, implying about 95% growth and a further acceleration. That forecast assumes no data center compute revenue from China, a market Chief Executive Officer Jensen Huang said the company has "largely conceded" to domestic rival Huawei. Shares traded near $215 after the report, with the forward price-to-earnings multiple in the low 20s.
The guidance raise signals management expects AI infrastructure demand to sustain its rapid pace. Investors will watch the next earnings call for updates on Blackwell and Vera Rubin processor revenue, which Huang has said could total $1 trillion across 2026 and 2027.
This article is for informational purposes only and does not constitute investment advice.
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