Nvidia set a new sales record in the first quarter of fiscal year 2027 (February–April 2026), marking its 12th straight quarter of record results. Nvidia also signaled that growth could continue by offering a solid outlook for the second quarter.
Nvidia disclosed on the 20th (local time) that first-quarter revenue in fiscal year 2027 rose 85% from a year earlier to $81.615 billion (about 122.4 trillion won). It was up 20% from the previous quarter's record high. This is a "surprise result" that beat the market forecast of $78.85 billion.
Nvidia has been setting new sales records for 12 consecutive quarters. This quarter, revenue growth was driven by the data center business, where sales rose 92% from a year earlier to $75.2 billion (about 113 trillion won).
During the period, operating income under generally accepted accounting principles (GAAP) was $53.536 billion (about 80.34 trillion won), up 21% from the previous quarter and 147% from a year earlier. GAAP gross margin reached 74.9%. Adjusted earnings per share (EPS) were $1.87, topping Wall Street's estimate of $1.76.
Nvidia signaled that earnings growth will continue. Nvidia guided second-quarter fiscal year 2027 revenue to $91 billion (about 136.5 trillion won). It said a "record sales" milestone is possible even without reflecting data center business results for the China market. The company projected second-quarter GAAP and non-GAAP gross margins of 74.9% and 75.0%, respectively.
Nvidia also unveiled a shareholder return plan including share repurchases and higher dividends. The company said its board on the 18th approved an additional share repurchase plan of $80 billion (about 120 trillion won) with no expiration. The quarterly cash dividend on its common stock was sharply raised to $0.25 per share from $0.01. The payment date is on the 26th of next month. With first-quarter free cash flow (FCF) surging to $48.6 billion (about 70 trillion won) from $34.9 billion in the previous quarter, the company sent a message to the market that it would return this to shareholders.
Some in the market said Nvidia's second-quarter guidance fell short of certain high expectations ($96 billion). In after-hours trading, the share price at one point plunged 3%–4%, but the decline narrowed to around 1% by the close after the shareholder return plan was announced.
Nvidia also laid out plans for its next-generation AI chip Vera Rubin. Colette Kress, Nvidia chief financial officer (CFO), said on the first-quarter earnings conference call, "Vera Rubin shipments will begin in the third quarter this year and move into mass production from the fourth quarter," adding, "There will be large-scale revenue in the first quarter next year." She said, "Major customers' order plans have already been finalized," and added, "The key variables now are complex system assembly and production timing."
Huang Jen-hsun, Nvidia chief executive officer (CEO), said, "All leading AI model companies will adopt Vera Rubin," adding, "Vera Rubin will be a more successful product than Blackwell (the previous model)."
Huang also said Nvidia's earnings growth could continue as global big tech increases AI investment. Huang said, "Analysts see hyperscalers' investment reaching $1 trillion (about 1,502 trillion won) next year."
Nvidia will also revamp its business segment classification. Instead of dividing by detailed areas, it will reorganize around two pillars: the data center segment and edge computing, and the data center will be further split into hyperscale and ACIE (artificial intelligence cloud, industry, corporations).
Huang said, "AI factory buildouts are accelerating at an unprecedented pace," adding, "As we enter the agentic AI era, AI has begun to perform work that is truly productive and valuable." He added, "This is an era where compute capability translates directly into sales and operating income," and "tokens are generating revenue and major AI corporations have entered a race to produce more services."