Nvidia's FY2027 Q1 earnings release and tax rate expectations trigger market volatility
Nvidia announced its financial report for the first quarter of fiscal year 2027 on Wednesday, May 21, 2026, after the U.S. stock market closed, with a revenue of US$81.6 billion, a year-on-year increase of 85%, a data center revenue innovation of US$75.2 billion, a net profit of US$58.3 billion, and an estimated Q2 revenue of US$91 billion, with a gross profit margin of about 75%. The company announced an additional $80 billion share repurchase authorization and increased its quarterly Dividend to $0.25 per share. After the release of the financial report, the stock price once fell by more than 3% after hours and then rebounded. Higher chip stocks pushed the main U.S. stock index up more than 1% ahead of the earnings release. In addition, Nvidia's data center Hopper series shipped zero products to China this quarter, and sales of this product to China amounted to $4.6 billion in the same period last year, reflecting a significant change in exports to China. Nvidia's chief financial officer revealed during the call that it expects an effective tax rate of 16% to 18% in fiscal 2027, which is lower than preliminary estimates. Meanwhile, the company expects a GAAP gross margin of 74.9% and a non-GAAP gross margin of 75.0% in the second quarter, both with a 50 basis point float.