NVIDIA Corp (NVDA) 10-Q 2026: AI Summary

Summary

Full summary

The Print

positive

NVIDIA reported Q1 FY2027 revenue of $81.6B (up 85% YoY) and net income of $58.3B ($2.39 diluted EPS), with gross margin of 74.9% versus 60.5% a year ago.

Revenue increased 85% YoY to $81.6B and 20% sequentially. Management states revenue growth in the first quarter was driven by data center products for accelerated computing and AI solutions, and that Data Center revenue growth was driven by the ramp of Blackwell 300 products and demand for InfiniBand, Spectrum-X Ethernet, and NVLink solutions. Gross margin increased to 74.9% from 60.5% a year ago, which management attributes primarily to the prior year's $4.5B charge associated with H20 excess inventory and purchase obligations; gross margin was approximately flat sequentially. Operating expenses rose 52% YoY, which management attributes primarily to higher compensation and benefits expense due to employee growth and compensation increases, compute and infrastructure costs, and engineering development materials for new product developments.

Revenue rose 85% YoY to $81.6B and 20% sequentially from $68.1B, with Data Center revenue of $75.2B up 92% YoY.
Net income of $58.3B included $15.9B of Other income (expense), net, primarily from unrealized gains on publicly-held equity securities of $13.4B and non-marketable equity securities of $2.6B.
Gross margin of 74.9% compared with 60.5% a year ago, which management attributes primarily to the prior year's $4.5B charge associated with H20 excess inventory and purchase obligations.
Operating cash flow was $50.3B; the company repurchased 108 million shares for $20.2B and, on May 18, 2026, approved an additional $80.0B repurchase authorization and raised the quarterly dividend from $0.01 to $0.25 per share.

Results That Matter

Revenue
Current period
$81.6B
Prior period
$44.1B
Change
+85.2%
Management states revenue growth in the first quarter was driven by data center products for accelerated computing and AI solutions, with Blackwell continuing to account for the majority of system shipments.
Gross profit
Current period
$61.2B
Prior period
$26.7B
Change
+129.3%
Gross margin increased to 74.9% from 60.5%, which management attributes primarily to the prior year's $4.5B charge associated with H20 excess inventory and purchase obligations.
Operating income
Current period
$53.5B
Prior period
$21.6B
Change
+147.4%
Operating income rose alongside revenue growth and the non-recurrence of the prior-year H20 charge, partly offset by a 52% YoY increase in operating expenses.
Net income
Current period
$58.3B
Prior period
$18.8B
Change
+210.6%
Net income included $15,929M of Other income (expense), net, which management states was primarily driven by unrealized gains on investments in publicly-held equity securities of $13.4B and non-marketable equity securities of $2.6B.
Net income per share - Diluted
Current period
$2.4
Prior period
$0.76
Change
—
Diluted EPS rose with net income; diluted weighted average shares declined to 24,391 million from 24,611 million a year ago.
Net income per share - Basic
Current period
$2.4
Prior period
$0.77
Change
—
Basic EPS rose with net income; basic weighted average shares declined to 24,286 million from 24,441 million a year ago.

Financial highlights: current period, prior period, change, and investor takeaway per metric
Metric	Current Period	Prior Period	Change	Investor Takeaway
Revenue	$81.6B	$44.1B	+85.2%	Management states revenue growth in the first quarter was driven by data center products for accelerated computing and AI solutions, with Blackwell continuing to account for the majority of system shipments.
Gross profit	$61.2B	$26.7B	+129.3%	Gross margin increased to 74.9% from 60.5%, which management attributes primarily to the prior year's $4.5B charge associated with H20 excess inventory and purchase obligations.
Operating income	$53.5B	$21.6B	+147.4%	Operating income rose alongside revenue growth and the non-recurrence of the prior-year H20 charge, partly offset by a 52% YoY increase in operating expenses.
Net income	$58.3B	$18.8B	+210.6%	Net income included $15,929M of Other income (expense), net, which management states was primarily driven by unrealized gains on investments in publicly-held equity securities of $13.4B and non-marketable equity securities of $2.6B.
Net income per share - Diluted	$2.4	$0.76	—	Diluted EPS rose with net income; diluted weighted average shares declined to 24,391 million from 24,611 million a year ago.
Net income per share - Basic	$2.4	$0.77	—	Basic EPS rose with net income; basic weighted average shares declined to 24,286 million from 24,441 million a year ago.

Earnings Quality & Cash Conversion

Reported net income of $58,321M included Other income (expense), net of $15,929M, which management states was primarily driven by unrealized gains on investments in publicly-held equity securities of $13.4B and non-marketable equity securities of $2.6B; the prior-year quarter included Other income (expense), net of $(180)M. Gross margin of 74.9% compared with 60.5% a year ago, which management attributes primarily to the prior year's $4.5B charge associated with H20 excess inventory and purchase obligations. Provisions for inventory and excess inventory purchase obligations totaled $1.1B and $5.3B for the first quarter of fiscal years 2027 and 2026, respectively, with the net effect on gross margin an unfavorable impact of 1.2% and 11.0%, respectively.

Red flag

Three direct customers represented 21%, 17%, and 16% of total revenue in Q1 FY2027, and three direct customers accounted for 30%, 18%, and 16% of the accounts receivable balance as of April 26, 2026.

Red flag

Inventories increased to $25,797M from $21,403M at January 25, 2026, and accounts receivable, net increased to $40,710M from $38,466M.

Value Drivers & Capital Allocation

Capital expenditures $1.8B (prior $1.2B) (selected cash-flow amount, not necessarily total capital investment).

“Cash used in financing activities increased in the first quarter of fiscal year 2027 compared to the first quarter of fiscal year 2026, mainly due to higher share repurchases.”
— Filing statement

“We paid cash dividends to our shareholders of $243 million during the first quarter of fiscal year 2027. On May 18, 2026, we increased our quarterly cash dividend from $0.01 per share to $0.25 per share to all shareholders of record on June 4, 2026. Our quarterly cash dividend will be paid on June 26, 2026.”
— Filing statement

Return on equity was 29.8% (prior 22.4%) (period net income / period-end equity, not annualized); return on assets 22.5% (period net income / period-end assets, not annualized).

Forward Signals

positive

The filing does not provide quantitative revenue or earnings guidance. It states that the company expects its Rubin platform to start shipping in the second half of fiscal year 2027, and that between the second quarter of fiscal year 2027 and fiscal year 2033 it expects to commence leases with future obligations of $32.4 billion, primarily for data center leases to support research and development efforts.

Known trends

The availability of data centers, energy, and capital to support the buildout of NVIDIA AI infrastructure by customers and partners is crucial, and any shortage of these or other necessary resources could impact future revenue and financial performance.
The complexity of bringing up the product architecture and sophisticated system configurations has caused and may in the future cause delays in production and create challenges in managing supply and demand.
Beginning in February 2026, the U.S. government granted licenses that allow the company to ship small amounts of H200 products to specific China-based customers; to date, no revenue has been generated under the H200 licensing program.

Subsequent events

On May 18, 2026, the Board of Directors approved an additional $80.0 billion in share repurchase authorization, without expiration.
On May 18, 2026, the company increased its quarterly cash dividend from $0.01 per share to $0.25 per share to all shareholders of record on June 4, 2026, payable June 26, 2026.

“We expect our Rubin platform to start shipping in the second half of fiscal year 2027.”
— NVIDIA Corporation (MD&A)

Risks

4 source-verified filing excerpts. Selected excerpts are not a complete risk inventory.

Filing excerpt 1

EvidenceFor the first quarter of fiscal year 2027, three direct customers represented 21%, 17%, and 16% of total revenue, all of which was primarily attributable to the Compute & Networking segment.

Filing excerpt 2

EvidenceAs of April 26, 2026, these commitments were $119 billion for which $95 billion will be paid in the remainder of fiscal year 2027 and the remaining balance will be paid in fiscal years 2028 through 2031.

Filing excerpt 3

EvidenceWe have also received, and continue to receive, broad requests for information from competition regulators in the European Union, the United States, the United Kingdom, China, and South Korea regarding our sales of GPUs and other NVIDIA products

Filing excerpt 4

EvidenceOn March 25, 2026, the district court granted plaintiffs’ motion for class certification and certified a class of investors consisting of all persons or entities who purchased or otherwise acquired NVIDIA common stock between August 10, 2017, and November 15, 2018

Balance Sheet & Liquidity

Leverage: Identified debt as of 2026-04-26: reported debt balance of unestablished maturity scope of $7.5B. The concept behind this balance does not establish which maturities it covers. Total debt, net debt and debt-to-equity are therefore not stated.

Liquidity: As of April 26, 2026, the company reported $50.3 billion in cash, cash equivalents, and marketable debt securities as well as $30.2 billion of marketable equity securities, and stated it believes it has sufficient liquidity to meet operating requirements for at least the next twelve months and for the foreseeable future. The commercial paper program had a capacity of $25.0 billion with no amounts outstanding.

Cash flow: Cash flow — operating $50.3B, investing $-26.4B, financing $-21.3B.

Working capital: Current assets $151.0B vs. current liabilities $43.9B (current ratio 3.44x). Prior reported balance sheet as of 2026-01-25: $125.6B vs. $32.2B (3.91x).

Maturities & covenants

Aggregate debt maturities as of April 26, 2026 were $1,000M due in one year, $2,750M due in one to five years, $1,250M due in five to ten years, and $3,500M due in greater than ten years, with a net carrying amount of $8,470M.
As of April 26, 2026, the company complied with the required covenants, which are non-financial in nature, under the outstanding notes.

Notable Footnotes

Item	Impact
Investment commitments and non-marketable securities	Total investment commitments were $27 billion as of April 26, 2026, subject to certain contingencies, expected to be made through the remainder of fiscal year 2027; non-marketable equity securities rose to $42,336M from $22,251M at January 25, 2026.
Multi-year cloud service agreement commitments	Multi-year cloud service agreement commitments were $30 billion as of April 26, 2026, with $6 billion payable in the remainder of fiscal year 2027; cloud service capacity may be reduced or terminated.
Facility lease guarantee	Maximum gross exposure under facility lease guarantee agreements is $3.5 billion, reduced as partners make payments over terms ranging from 5 to 7 years; partners placed $712 million in escrow to mitigate potential exposure.
Income taxes	Income tax expense was $11.6 billion for Q1 FY2027, with an effective rate of 16.6% versus 14.3% a year ago; the company is under IRS examination for fiscal years 2023 and 2024.

Ask NVDA’s 10-Q anything

Get plain-English answers, each cited to the exact filing text. Try a starter question:

AI-generated. Informational only, not investment advice. May be incomplete or contain errors. The authoritative source is always the original SEC filing.