Stocks And Gainz -- NVIDIA Q1 FY2027 Earnings Report

📊 Full Financial Metrics -- Actual vs Estimates Source: SEC 8-K · CNBC · Investing.com · May 20, 2026

Total Revenue

$81.6B

Est: $78.75B · PY: $44.1B

+3.6% BEAT · +85% YoY

Non-GAAP EPS

$1.87

Est: $1.77 · PY: $0.76

+$0.10 BEAT · +146% YoY

GAAP EPS

$2.39

Prior qtr: $1.76 · PY: $0.76

+214% YoY

Data Center Revenue

$75.2B

Est: ~$73B · PY: ~$39B

+92% YoY · RECORD

Gross Margin (GAAP)

74.9%

Guide was 75.0% midpoint

MAINTAINED PRICING POWER

Non-GAAP Gross Margin

75.0%

In line with guidance

IN LINE WITH GUIDE

Free Cash Flow

$49B

All-time record for any quarter

RECORD ALL-TIME

Revenue Growth YoY

+85%

3rd consecutive YoY acceleration

14th STRAIGHT SEQ GROWTH QTR

Revenue Growth QoQ

+20%

From $68.1B prior quarter

STRONG SEQUENTIAL MOMENTUM

Stock After-Hours

+1.37%

To $223.63 after close May 20

MUTED vs BEAT MAGNITUDE

New Share Buyback

$80B

New authorization announced

SHAREHOLDER RETURN

DC Computing Revenue

$60.4B

Up 77% YoY · +18% QoQ

BLACKWELL DRIVEN

DC Networking Revenue

$14.8B

Up 199% YoY · +35% QoQ -- RECORD

+199% YoY RECORD

Operating Cash Flow

$50.3B

vs $27.4B a year ago -- +84% YoY

RECORD OPERATING CF

🔍 Segment Breakdown Source: SEC 8-K · CNBC Transcript · Motley Fool Transcript May 20, 2026

Data Center

$75.2B

+92% YoY · +21% QoQ · RECORD

Blackwell architecture dominated. DC Computing alone hit $60B (+77% YoY). Blackwell drove close to 70% of data center compute. All five hyperscalers expanding AI infrastructure at record pace.

Gaming

< 8% of Total

Now less than 8% of NVDA revenue

Gaming has been de-prioritized as NVDA directs GPU supply toward Blackwell and Rubin for AI. Global memory shortage led to further prioritization of data center over GeForce gaming GPUs.

Automotive

Growing Fast

Self-driving and ADAS expansion

NVIDIA's automotive platform DRIVE expanding with new automaker wins. Jensen Huang attended a ceremony in Beijing on May 14 with President Trump -- signaling China auto market ambitions remain active.

CPU -- New Ambition

Vera CPU Launch

Targeting Intel and AMD's dominance

CFO Colette Kress stated on the call that NVIDIA aims to become "the world's leading CPU supplier." Vera Rubin system has 1.3M components including 72 Rubin GPUs and 36 Vera CPUs. Jensen says Vera Rubin will be supply-constrained its "entire life."

Edge Computing

$6.4B

+29% YoY · +10% QoQ -- confirmed SEC 8-K

Edge Computing revenue of $6.4 billion confirmed in the official SEC 8-K filing. Up 29% from a year ago and up 10% sequentially. Covers AI inference at the edge, industrial automation, and robotics -- a fast-growing segment that was missing from the original report.

🎯 Q2 FY2027 Guidance -- Crushed Consensus Source: SEC 8-K CFO Commentary · May 20, 2026

Q2 Revenue Guide

$91.0B (+/-2%)

vs $86B consensus -- $5B BEAT

Q2 GAAP Gross Margin

74.9% (+/-50bps)

Pricing power maintained at scale

Q2 Non-GAAP Gross Margin

75.0% (+/-50bps)

No margin compression from Rubin ramp

Q2 GAAP OpEx

~$8.5B

Reflects Rubin R&D investment

Q2 Non-GAAP OpEx

~$8.3B

Excluding one-time items

China Data Center

$0 assumed

No China DC revenue in Q2 guide -- conservative

The Q2 guidance is the single most important number in the entire report. Wall Street consensus for Q2 was $86 billion. NVIDIA guided $91 billion at the midpoint -- a $5 billion beat on forward guidance. This alone overrides any concerns about whether Q1 was "enough" of a beat. The guidance also notably assumes zero China data center compute revenue -- meaning any China revenue that comes through in Q2 is pure upside to estimates.

🚨 Key Call Highlights -- Jensen Huang Commentary Source: CNBC · Motley Fool Transcript · May 20, 2026

"Grace Blackwell with NVLink is the king of inference today -- delivering an order-of-magnitude lower cost per token -- and Vera Rubin will extend that leadership even further." -- Jensen Huang, CEO

Jensen confirmed Vera Rubin is on track for second-half calendar year 2026 ramp. The system consists of 1.3 million components including 72 Rubin GPUs and 36 Vera CPUs -- delivering 10x more performance per watt than Grace Blackwell. He expects NVIDIA will be supply-constrained throughout Vera Rubin's entire product life, suggesting demand far exceeds anticipated supply for the foreseeable future.

CFO Colette Kress confirmed NVIDIA's ambition to become "the world's leading CPU supplier" -- a direct shot at Intel's $50B+ data center CPU business and AMD's EPYC franchise. The Vera CPU inside the Rubin system is NVIDIA's first fully integrated CPU+GPU rack-scale system, shifting the company from being a GPU vendor to being a full infrastructure provider.

On China: management was cautious, noting that H20 GPU sales to China remain subject to export control uncertainty and they have assumed zero China data center revenue in Q2 guidance. This is a deliberately conservative posture that creates built-in guidance upside if policy conditions improve.

The $80 billion new share repurchase authorization signals extreme management confidence in the business outlook and cash generation. At the current free cash flow run rate of $49B per quarter, NVIDIA can theoretically complete the entire buyback in two quarters.

⚠ Key Risks -- What Could Go Wrong Source: TradingKey · CNBC · SEC Risk Factors

RISK 01

Stock Historically Sells Off on Beats

NVDA fell 5.5% on earnings day in February 2026 and 3.2% the day after November 2025 results -- both times the company beat revenue estimates. The buy-side default is now to fade a routine beat. The +$5B Q2 guide may change this pattern but the risk remains.

RISK 02

China Export Controls

NVIDIA assumed zero China data center revenue in Q2 guidance. H20 and H200 sales to China remain subject to U.S. export restrictions. Any tightening of controls could remove a meaningful revenue opportunity. Any loosening is pure upside.

RISK 03

Rubin Margin Transition Risk

New product ramp-ups typically require 1-2 quarters for yield and cost structures to stabilize. Rubin gross margin during the Q3-Q4 transition window remains the most watched risk. One-time packaging yield issues could pressure margins temporarily.

RISK 04

$370B FY2027 Consensus -- Zero Margin for Error

Bloomberg consensus has set FY2027 full-year revenue at ~$370B, requiring NVIDIA to sustain ~70% YoY growth every quarter. This is historically unprecedented for a company of this size. A single guidance miss would trigger severe multiple compression.

S&G Bottom Line -- NVDA Q1 FY2027

NVIDIA just printed the most dominant AI earnings quarter in history -- again. $81.6B in revenue (+85% YoY), $75.2B in data center revenue (+92% YoY), $49B in free cash flow (a new all-time record), and Q2 guidance of $91B -- which was $5 billion above Wall Street consensus. Every number set a new record. This is the 14th consecutive quarter of sequential revenue growth and the 3rd consecutive year of YoY revenue acceleration.

The guidance beat is the headline. When NVIDIA guides $91B for Q2 versus a $86B consensus, and then conservatively assumes zero China data center revenue in that guide, the message is clear: demand is so far ahead of supply that they cannot even predict it accurately. Jensen confirmed Vera Rubin will be supply-constrained for its entire product life. The $80B share buyback on top of $49B FCF confirms management sees the stock as undervalued even at all-time highs.

Rating: Strong BUY. The stock only rose 1.37% after-hours -- the market is struggling to process beats of this magnitude. Any pullback toward $200-210 is a gift. The risk/reward on a 12-month basis pointing toward analyst targets of $275-$350 is among the best in the market right now.