Nvidia Q1 beats forecasts, stock reaction muted

Nvidia reported fiscal 2027 first-quarter results on May 20, delivering revenue of $81.62 billion and earnings of $1.87 per share. Both figures were above Wall Street consensus, which had called for revenue of $79.2 billion and earnings of $1.78 per share. The performance extended the company’s run of large headline beats tied to demand for artificial intelligence infrastructure.

Gross margin for the quarter came in at 75%, matching analysts’ expectations. Management also announced an increase in Nvidia’s quarterly dividend to $0.25 per share, adding a capital-return element to the earnings release alongside the operational outperformance.

Nvidia’s data-center segment accounted for the bulk of the quarter’s results. Data-center revenue reached $75.2 billion, roughly double levels from a year earlier and representing about 92% of total company sales. The figures highlight how central AI-focused data-center products have become to Nvidia’s overall growth profile.

Management said that, despite the size of the data-center business, the company still is not recording data-center compute revenue from China. That detail drew attention given the importance of AI demand globally and ongoing questions about regional contributions to Nvidia’s growth.

Alongside the quarterly numbers, Nvidia outlined changes to how it reports results to investors. The company is reframing its disclosure into data-center and edge-computing buckets. This reorganization is intended to align reporting with the way Nvidia’s operations and revenue streams are now concentrated around large-scale AI infrastructure and related computing at the network edge.

The updated segmentation places the expanding data-center business in sharper focus while grouping other activities into edge computing. The move underscores the degree to which Nvidia’s current results are driven by AI workloads in large data centers, with other areas presented as complementary.

Market response to the report was mixed. Nvidia shares finished the regular trading session up about 1.3% on the day of the release, reflecting an initially positive reaction to the headline beat on revenue and earnings. However, trading turned more cautious after the market close.

A few minutes after 5:00 p.m. ET, the stock was trading roughly 0.6% lower, and it weakened further following the analyst call. The post-call slide left the shares on track for a fourth straight decline after an earnings report, even as the company continued to post strong growth and maintained high profitability metrics.

The contrast between Nvidia’s substantial data-center-driven growth, in-line margins, higher dividend, and the subdued post-call share performance underscores investors’ focus on forward-looking commentary and segment detail rather than headline beats alone.