Nvidia exceeded analysts' expectations across the board in the first quarter of fiscal 2027, which closed on April 26. Revenue reached $81.6 billion, a 20 percent increase from the previous quarter and an 85 percent rise year-over-year. This result topped the LSEG (London Stock Exchange Group) consensus of $78.9 billion.
For perspective, Nvidia generates in three months roughly the equivalent of the annual GDP of Uruguay, Lithuania or Ghana.
Data center revenue and guidance
Revenue from data centers set a record at $75.2 billion, above the market expectation of $72.8 billion. For the current quarter Nvidia guided to $91 billion in revenue, with a margin of error of plus or minus 2 percent. That implies a baseline quarter-over-quarter growth of about 11.5 percent — lower than the most recent 20 percent gain but still ahead of the $86.6 billion analyst consensus.
Profitability and the buyback program
Nvidia's gross margin improved from 61 percent a year ago to 75 percent. Net income after tax was $45.5 billion, a 139 percent increase year-over-year. At the same time the company announced an unlimited $80 billion share repurchase program.
Despite the strong numbers, the market response was muted: after-hours trading showed little movement and investors are awaiting comments from chief executive Jensen Huang at the upcoming analyst call.
Why the report matters
Wall Street treats Nvidia's results as a key barometer for the health of the artificial intelligence market because its chips power many of the largest and most advanced models in data centers worldwide. Spending on AI infrastructure continues to accelerate: major U.S. technology companies, including Alphabet, Amazon and Microsoft, are expected to spend more than $700 billion on AI this year, a sharp rise from roughly $400 billion in 2025.
These companies are primary beneficiaries of Nvidia's business, although several are also developing custom AI chips of their own — a dynamic that could reduce Nvidia's long-term growth potential if those efforts mature.
Competition and Nvidia's responses
Nvidia also faces competitive pressure from chipmakers such as Intel and Advanced Micro Devices (AMD), which seek larger shares of the market. The Santa Clara–based company has not been idle: in March it unveiled a new central processor and AI system that builds on the technology of the inference-focused chip startup Groq.
The quarter's strong financials and the large buyback program signal Nvidia's intent to maintain its market leadership in the rapidly expanding AI infrastructure market, while investors look for further guidance and commentary from Jensen Huang.
