U.S. graphics processor maker Nvidia Corp. sharply increased net income and revenue in the first quarter of fiscal 2027, at the same time both exceeded market forecasts.
The company also announced an $80 billion buyback and raised its dividend, but its shares fell moderately in additional trading Wednesday.
Nvidia said in a press release that net income for the quarter ended April 26 was $58.32 billion, or $2.39 per share, compared to $18.78 billion, or $0.76 per share, for the comparable period of the previous fiscal year.
The company’s quarterly revenue rose to $81.62 billion from $44.06 billion a year earlier.
Analysts polled by FactSet had forecast net income of $42.9bn on revenue of $78.9bn.
The data centre division nearly doubled revenue,to $75.2bn. Revenue at Edge Computing was up 29% to $6.4bn.
“Demand has grown in a parabola,” said CEO Jensen Huang. – The reason is clear: the era of agency AI is here.”
The company expects its revenue to be around $91bn in the current quarter.
Nvidia’s management approved a new $80bn share buyback programme, and the company will also pay a quarterly dividend of 25 cents per share, up from 1 cent per share a year earlier.
Chief Financial Officer Colette Kress said shareholder distributions this year will account for about 50 per cent of free cash flow.
Nvidia’s stock was down 1.3 per cent in additional trading on Wednesday. The company’s capitalisation has risen 19.8% to $5.34 trillion since the start of this year. Nvidia is the world’s most valuable company.
“It doesn’t matter now whether the company exceeded forecasts or not. It’s taken for granted,” said Will Rhind, chairman and founder of investment firm GraniteShares. His company owns $5bn worth of Nvidia stock.