NVIDIA, FY27 Q1 Earnings Results

01 Revenue, operating income and results versus expectations

Year over year · Revenue 44.062 → 81.615 B$ (+85.2% · +37.553 B$), Operating income 21.638 → 53.536 B$ (+147.4% · +31.898 B$).

Quarter over quarter · Revenue 68.127 → 81.615 B$ (+19.8% · +13.488 B$), Operating income 44.299 → 53.536 B$ (+20.9% · +9.237 B$), Operating margin 65.0% → 65.6% (+0.6%p).

Total-company revenue rose by 37.553 B$ year over year and 13.488 B$ quarter over quarter. Within Data Center under the previous classification, compute revenue was approximately 60.4 B$ and networking approximately 14.8 B$. The platform revenue figures above are detailed disclosures in the CFO commentary, and those two platform totals reconcile to consolidated revenue.

02 Earnings sustainability · From operating income to net income

The prior-year FY2026 Q1 included an H20-related inventory and purchase commitment charge of 4.5 B$. This low comparison base also contributed to the large year-over-year increase in GAAP margin this quarter.

Net non-operating income this quarter was 16.367 B$, including other income and expenses of 15.929 B$. These disclosed figures include investment gains and losses and are distinct from operating income from product sales. The CFO attributed approximately 15.9 B$ of net equity-security gains to unrealized gains on listed and unlisted equity investments.

Operating income

53.536 B$

Net non-operating income/loss

16.367 B$

Income tax expense

−11.582 B$

Consolidated net income

58.321 B$

Net income of 58.321 B$ in the existing quarterly data is on a consolidated basis.

03 Cash flow quality · Net income → OCF → FCF

Company-defined FCF of 48.554 B$ equals OCF of 50.344 B$ less cash PP&E and intangible asset purchases of 1.757 B$ and financing-related principal of 0.033 B$. This is distinguished from 48.587 B$, which omits the principal deduction.

Equity investments, corporate acquisitions and similar uses of funds are excluded from this FCF's CapEx definition. High FCF does not mean the balance is after every investment-related use of funds.

Consolidated net income

58.321 B$

Total net adjustments, including non-cash items and working capital¹

−7.977 B$

Operating cash flow

50.344 B$

Cash CapEx

−1.757 B$

Additional company-defined adjustments and disclosure rounding²

−0.033 B$

Company-defined FCF

48.554 B$

¹ Total net adjustments calculated as OCF minus net income. This is not a single disclosed line item; it combines non-cash items, working capital, classification differences and other adjustments.

² Difference between company FCF and OCF minus cash CapEx. The detailed scope follows the explanation above and the original definition.

FCF versus the previous quarter · 34.902 → 48.554 B$, a 13.652 B$ improvement.

04 Financial capacity · Net debt and payment obligations

Net debt deteriorated by 12.223 B$ from the previous quarter. The carrying amount of current borrowings is 1.000 B$. This may differ from the principal maturity schedule.

Approximately 20 B$ was returned to shareholders through repurchases and dividends during the quarter. The board's additional repurchase authorization of 80 B$ is not cash already spent.

Common definitions · Cash and liquid assets = cash equivalents + current investments and deposits. Borrowings = carrying amount of interest-bearing debt (current + non-current), excluding separate lease liabilities. This differs from total liabilities of 64.000 B$. Restricted cash, non-current securities and non-current deposits are excluded from cash and liquid assets.

05 Investment, capital allocation and cash recovery

This reflects a fabless business model in which the company's own cash CapEx is smaller than customer data center investment. Supply procurement, the durability of customer investment, and inventory and purchase commitment risks during product transitions require separate assessment.

This quarter, cash CapEx/revenue was 2.2% and FCF/revenue was 59.5%. These ratios should not be used as a simple ranking of companies with different business models and FCF definitions.

06 Next-quarter and full-year outlook and implications

YoY +90.8%~+98.6% · QoQ +9.3%~+13.7%. Comparison revenue was 46.743 B$ in the corresponding prior-year quarter and 81.615 B$ in the current quarter. Growth rates were calculated from the underlying amounts.

The range applies ±2% to a revenue midpoint of 91 B$. The outlook assumes no China Data Center compute revenue. Expected gross margin was 74.9% ±0.5%p on a GAAP basis and 75.0% ±0.5%p on a non-GAAP basis.

RPO / Backlog

QoQ 2.300 → 2.600 B$ (+13.0% · +0.300 B$).

YoY 1.800 → 2.600 B$ (+44.4% · +0.800 B$).

Disclosed long-term remaining performance obligations. This differs from total GPU orders, purchase commitments and amounts securing supply capacity · Contract balances are not equivalent to committed next-quarter revenue or cash inflows. RPO scope differs across companies.

Quarterly results · CY-aligned view

Amounts in B$. The table shows all 4 quarters of the prior year and the current year's reported quarters, based on the report's CY-aligned year. Each fiscal quarter is assigned to the calendar quarter with the greatest overlap in its actual reporting period; the original FY/CY label and start and end dates are also shown. Amounts have not been recalculated into actual calendar quarters.

Indented rows are components of, or reference items for, the parent metric. Net cash = cash and liquid assets − borrowings. Depending on company definitions, FCF may include additional adjustments such as lease principal and therefore differ from operating cash flow − cash CapEx. See the cash flow discussion for the detailed definition.