Nvidia Reports Record Revenue of $81.6 Billion, Driven by Data Centers

Data Centers Drive the Majority of Growth

The main growth driver remains the Data Center activity. Its revenue reached $75.2 billion for the quarter, up 21% compared to the previous quarter and 92% year-over-year. This division thus represents the overwhelming majority of the group's revenue, far ahead of other activities.

In the previous reporting breakdown, Nvidia indicates that Data Center revenue related to computing reached $60.4 billion, an increase of 77% year-over-year. Revenue related to networking amounted to $14.8 billion, up 199%. This distinction is important: it shows that growth does not come solely from the graphics processors used for artificial intelligence, but also from the networking equipment necessary for the operation of large data centers.

To make its business clearer, Nvidia is adopting a new reporting framework. The group will now distinguish between two major platforms: Data Center and Edge Computing. Within Data Centers, Nvidia will particularly separate revenue from the large public clouds and very large internet groups, grouped under “Hyperscale,” from those related to AI clouds, industrial uses, and enterprises.

Consistently High Profitability

The non-GAAP gross margin stands at 75.0%. This means that for every 100 dollars of revenue, Nvidia retains approximately 75 dollars of gross margin before accounting for operating expenses, according to its non-GAAP definition. This margin is almost stable compared to the previous quarter but shows a significant increase from the 60.8% reported a year earlier.

GAAP operating income reaches 53.5 billion dollars, compared to 21.6 billion dollars a year earlier. On a non-GAAP basis, it stands at 53.8 billion dollars. For beginner investors, this point is crucial: a company can show strong sales growth without improving its profits. In Nvidia's case, however, the announcement indicates a very marked increase in operational profitability.

A Significant Return to Shareholders

Nvidia also announced an enhancement of its redistribution policy. In the first quarter, the group returned approximately $20 billion to its shareholders in the form of stock buybacks and dividends. It still had $38.5 billion authorized for buybacks at the end of the quarter.

On May 18, 2026, the board of directors approved an additional stock buyback authorization of $80 billion, with no expiration date. Nvidia is also raising its quarterly dividend from $0.01 to $0.25 per share. The dividend will be paid on June 26, 2026, to shareholders recorded as of June 4, 2026.

This redistribution doesn't transform Nvidia into a classic income stock, but it indicates that the group has a significant ability to generate and return cash. Operating cash flow amounted to $50.3 billion for the quarter, compared to $27.4 billion a year earlier.

Even Higher Revenue Projections for the Next Quarter

For the second fiscal quarter of 2027, Nvidia anticipates revenue of $91.0 billion, with a margin of error of plus or minus 2%. The company also forecasts a GAAP gross margin of 74.9% and a non-GAAP gross margin of 75.0%, with a 50 basis points variability.

However, one point deserves attention: Nvidia specifies that its forecasts do not include any Data Center compute revenue from China. This indication does not imply that the group's outlook is weak; on the contrary, the expected revenue level remains higher than the previous quarter. Nevertheless, it shows that the growth trajectory relies on geographic and commercial assumptions that investors will need to monitor in the coming quarters.

Edge Computing: A Smaller, Yet Growing Activity

Alongside Data Centers, Nvidia is now highlighting Edge Computing. This activity generated $6.4 billion in revenue in the first quarter of fiscal 2027, up 10% from the previous quarter and 29% year-on-year. It encompasses uses related to PCs, gaming consoles, workstations, telecom equipment, robotics, and automobiles.

This segment remains much smaller than Data Centers, but it broadens the group's technological base. Nvidia particularly cites developments in local AI models, graphic technologies, autonomous driving, robotics, and next-generation telecom networks.