NVIDIA Guides for Massive $91B Q2 as AI Factory Era Fuels Record Earnings

We're starting to sound like a broken record when writing about NVIDIA's earnings, but that's only because NVIDIA keeps breaking records, as it has done once again. The company beat out Wall Street estimates yet again, this time by posting $81.6 billion for the first quarter of its fiscal 2027 period (versus the $78.8 billion consensus), which is up 20% from the previous quarter and up a massive 85% year-over-year.

NVIDIA has now topped Wall Street estimates for 14 consecutive quarters, and in 18 of the past 20 quarters, to put the earnings beat in context. It also returned a record $20 billion to shareholders in the form of shares repurchased and cash dividends as it continues to cash in on unprecedented demand in the data center in the emerging era of agentic AI. Additionally, NVIDIA increased its quarterly cash dividend from $0.01 per share to $0.25 per share of common stock, to be paid on June 26, 2026.

"The buildout of AI factories—the largest infrastructure expansion in human history—is accelerating at extraordinary speed," said Jensen Huang, founder and CEO of NVIDIA. "Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries. NVIDIA is uniquely positioned at the center of this transformation as the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced—from hyperscale data centers to the edge."

Net income for the quarter skyrocketed to $58.3 billion (GAAP) for a 36% sequential gain and a more boisterous 211% jump year-over-year. On a non-GAAP basis, net income hit $45.5 billion for quarter and year-over-year gains of 17% and 139%, respectively.

NVIDIA continues to fire on all cylinders with revenue growth in every division, though it's the Data Center business that is doing gangbusters. Revenue generated from NVIDIA's Data Center division rose 21% sequentially and 92% year-over-year to a record $75.2 billion, which the company attributes to the ramp of Blackwell 300 products, as well as demand for its InfiniBand, Spectrum-X Ethernet, and NVLink solutions. These are all pieces that are key to NVIDIA's recent AI platform alliance expansion with Meta.

"Under the previous sub-markets, Data Center compute revenue was a record $60.4 billion, up 77% from a year ago and up 18% sequentially. Data Center networking revenue was a record $14.8 billion, up 199% from a year ago and up 35% sequentially," NVIDIA says.

Possibly part of the reason why NVIDIA can report top-to-bottom growth in its latest earnings report is because its Gaming division is no longer reported on its own, and instead has been folded into its Edge Computing category that includes PCs, gaming consoles, workstations, AI RAN base stations, robotics, and automotive. Edge Computing added $6.37 billion to NVIDIA's bottom line, versus $5.81 billion in the previous quarter and $4.95 billion in same quarter a year ago.

NVIDIA is still invested in gaming product, but it's telling that its press release doesn't include a single mention of the terms "GeForce" or "gaming," and the same is true of its subsequent earnings call with investors. The company's trajectory in the agentic AI era is crystal clear as it consolidates earnings into two primary market segments, the Data Center—consisting of Hyperscale ($37.87 billion in Q1 revenue), and AI Clouds, Industrial, and Enterprise ($37.38 billion in Q1 revenue)—being by far the bigger one.

NVIDIA's latest earnings highlight what a wild ride it's been as of late, and there are no signs that things are about to slow down. As impressive as these results are, NVIDIA is guiding even higher for the current quarter, with Q2 revenue forecast to hit a staggering $91 billion, plus or minus 2%. That figure does not assume any Data Center revenue from China as that situation continues to play out.