Nvidia Posts Record $81.6B Q1 Revenue, Guides $91B for Q2, Raises Dividend 25x

Nvidia reported Q1 fiscal 2027 revenue of $81.6 billion on May 20, 2026 — up 85% year-over-year and 20% sequentially from Q4. It was the company’s ninth consecutive record quarter. Wall Street expected $79.2 billion. The beat was $2.4 billion.

Data Center carried the quarter. Segment revenue hit $75.2 billion, up 92% from a year ago. Blackwell 300 products are ramping faster than anticipated, and InfiniBand and NVLink interconnect demand — the networking fabric that makes large GPU clusters run — is tracking with hyperscaler capex commitments. If you buy a Blackwell rack, you buy the networking with it. Nvidia has structured its entire product portfolio around that lock-in, and it’s working.

Non-GAAP gross margin came in at 75.0%, essentially flat with Q4. A remarkable number for a company at this scale. Most chip businesses see margin compression as they ramp new process nodes. Not Nvidia. Blackwell’s pricing discipline has held through the transition from Hopper, and the software layer — CUDA, cuDNN, TensorRT — keeps switching costs prohibitive.

The shareholder return package deserves its own sentence: $80 billion in additional buyback authorization and a quarterly dividend raised from $0.01 to $0.25 per share. That’s a 25x dividend increase in a single announcement. The prior dividend was effectively a rounding error. At $0.25 per share quarterly, Nvidia is now paying serious money to long-term holders.

Non-GAAP diluted EPS came in at $1.87, against a consensus of $1.77. A 5.4% beat.

For Q2, the company guided $91 billion ±2% — explicitly excluding any Data Center compute revenue from China. That exclusion matters. The H20 chip export restrictions have created a recurring gap of roughly $4–5 billion per quarter. Nvidia is guiding $91 billion despite that headwind, which suggests the underlying demand ex-China is accelerating rather than plateauing.

The AI infrastructure buildout is not decelerating. Microsoft committed $80 billion in data center capex for calendar 2026. Meta is guiding $115–135 billion. Google disclosed $75 billion in 2025 spending and has signaled higher in 2026. Every dollar of that flows disproportionately through Nvidia’s supply chain.

Two real risks: the China export cap is an ongoing drag, and at 75% gross margins with a $3.7 trillion market cap, any credible competitive signal from AMD’s MI400, Intel Gaudi 4, or hyperscaler custom silicon will get punished immediately. Those alternatives are not competitive at cluster scale today. In 18 months, the gap will be meaningfully smaller.

The market had expected Nvidia’s growth to be decelerating by now. It isn’t. $81.6 billion last quarter. $91 billion next. The AI infrastructure trade is not over.