Nvidia (NVDA) announced its Q1 FY27 earnings on May 20, 2026, revealing substantial growth and a surprising boost to its dividend. While the chipmaker exceeded earnings expectations, its forecasts have sparked some concern among investors.
The company reported a record $81.6 billion in revenue, marking an 85% increase year-over-year. Data Center revenue, a key growth area, reached $75.2 billion, up 92% from the previous year. Despite these impressive figures, Nvidia's stock dipped slightly in after-hours trading, highlighting the market's sensitivity to forward-looking statements.
Nvidia's most notable move was a 25-fold increase in its quarterly dividend, from $0.01 to $0.25 per share. This significant increase signals the company's confidence in its ability to generate substantial cash flow while continuing to invest in future growth. The company also approved an additional $80 billion in share repurchase authorization. The dividend is payable on June 26, 2026, to stockholders of record on June 4, 2026.
Looking ahead, Nvidia anticipates Q2 FY27 revenue of $91 billion, plus or minus 2%. This guidance excludes any data center compute revenue from China. The company's GAAP gross margin is expected to be around 74.9%. Analysts remain largely bullish on Nvidia, with an average price target of $281.97. However, some analysts caution about potential competition and sustainability of AI infrastructure spending.
