Nvidia Crushes Earnings Again: Revenue Beat, Strong Guidance, $80B Buyback
$NVIDIA(NVDA)$
The company reported first-quarter revenue of $81.6 billion, up 85% year over year and above Wall Street expectations of roughly $79.19 billion. Adjusted EPS came in at $1.81, also topping the consensus estimate of $1.78.
Core data center revenue reached $75.2 billion, surging 92% year over year and remaining Nvidia's primary growth engine. Meanwhile, data center networking revenue climbed to $14.8 billion, up 199% from a year ago, highlighting how AI cluster upgrades are continuing to drive demand for high-speed interconnect infrastructure.
Gross margin — one of the market's most closely watched metrics — also came in stronger than expected. Nvidia posted a GAAP gross margin of 74.9%, roughly in line with the Street's 75% consensus. Despite Blackwell ramping aggressively and advanced packaging and HBM costs remaining elevated, Nvidia continues to maintain exceptionally high profitability, underscoring the company's strong pricing power in AI GPUs.
More important than the numbers themselves, however, was management's commentary on AI demand.
CEO Jensen Huang said Blackwell NVL72 AI supercomputers are now in full-scale production, while global demand for Nvidia AI infrastructure remains “incredibly strong.” He also noted that AI inference token generation increased 10-fold over the past year, adding that the rise of AI agents is expected to further accelerate global demand for AI compute.
At the same time, Nvidia issued another strong outlook for next quarter. The company expects fiscal Q2 2027 revenue of approximately $91 billion, plus or minus 2%, well ahead of market expectations. More notably, management stated that the guidance does not include any contribution from China data center computing revenue, suggesting that global AI demand remains strong enough to sustain rapid growth even amid export restrictions.
In addition, Nvidia's board approved a new $80 billion share repurchase authorization — one of the largest buyback programs in the company's history. The company also announced a sharp increase in its quarterly cash dividend, raising it from $0.01 per share to $0.25 per share. For a company still in a hyper-growth phase, these moves not only reflect explosive cash-flow generation, but also management's confidence in Nvidia's long-term growth trajectory.
It is worth noting that while Nvidia has continued to deliver strong earnings over the past several quarters, the stock's post-earnings reactions have become increasingly muted. That suggests the market's real challenge is no longer Nvidia's ability to beat expectations, but the ever-rising bar of investor expectations themselves.
Still, this earnings report reinforced one key message: the AI infrastructure arms race is far from over, and Nvidia remains the single most important beneficiary across the entire AI ecosystem.
Morgan Stanley recently reiterated $NVDA as its "top pick" in semiconductors and raised its price target on the stock. Analysts believe the market is still underestimating the scale of AI data center spending over the next several years, projecting that Nvidia's cumulative data center revenue could surpass $1 trillion between 2025 and 2027.
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