Nvidia posted 85% revenue growth and beat Wall Street expectations

Nvidia beat Wall Street expectations on revenue and earnings for the 14th consecutive quarter. The company also gave a strong outlook for the current period and reported a 25-fold increase in its dividend payout.

Nvidia's key sales segment - data center hardware and solutions, including computing and networking products for AI infrastructure - generated $75.2 billion in the first quarter of fiscal 2027, ended April 26. That's up 92% from a year earlier and slightly above Wall Street estimates. This area accounted for 92% of the company's total revenue.

Overall revenue for the quarter rose 85% year-over-year to $81.62 billion. Analysts, according to LSEG, were expecting $78.86 billion, CNBC writes. The chipmaker's adjusted earnings per share rose 140% to $1.87. Gross margin is 74.9%.

Sales in the current quarter, according to the company's estimates, will be $91 billion. Although analysts on average were hoping for $87 billion, the range of forecasts, according to Bloomberg, was up to $96 billion. Investors, accustomed to the fact that Nvidia significantly exceeds expectations, took the new benchmark coolly, the agency notes. Shares of the company in the postmarket after the publication of the report went into the negative, then recovered the decline and fell again, declining by about 1% by the close of trading. This fits the pattern the market has seen in previous quarters, the agency notes: Nvidia reports huge numbers, but investor reaction remains subdued.

The chipmaker also reported a sharp increase in payouts to shareholders: it raised its quarterly dividend from $0.01 to $0.25 per share. Nvidia also expanded its existing share repurchase program by another $80 billion. This signals that the company is not directing all of its cash to investments in the AI ecosystem, but is increasing the amount of funds returned to shareholders, Bloomberg noted.

The news is supplemented.

This article was AI-translated and verified by a human editor