Summary:
Q1 revenue guidance $76.44B–$79.56B vs $72.78B est
Q4 revenue $68.13B, +73% y/y, beat vs $65.91B
Data centre revenue $62.3B, +75% y/y, ahead of estimates
Gaming revenue $3.7B, below consensus
Gross margin 75.2%, remains exceptionally strong
Adjusted operating income $46.11B, +81% y/y
Free cash flow $34.9B vs $15.5B y/y
FY27 tax rate seen 17%–19%
Nvidia delivered another emphatic quarter, underscored by a first-quarter revenue forecast that comfortably exceeded expectations and reinforced the durability of the AI investment cycle.
The company guided Q1 revenue to a range of $76.44 billion to $79.56 billion, well above the $72.78 billion Bloomberg consensus. The midpoint implies continued sequential expansion despite already extraordinary scale, suggesting hyperscaler and enterprise AI demand remains robust.
Fourth-quarter revenue rose 73% year-on-year to $68.13 billion, topping estimates of $65.91 billion. The data centre segment, the core of Nvidia’s AI franchise, surged 75% to $62.3 billion, beating forecasts and reaffirming that accelerated computing and AI infrastructure remain the dominant growth engine.
Gaming revenue rose 48% to $3.7 billion but came in below expectations, while professional visualisation revenue of $1.3 billion sharply exceeded estimates. Automotive revenue of $604 million was slightly softer than forecast.
Profitability metrics were striking. Adjusted gross margin held at a formidable 75.2%. Adjusted operating income jumped 81% to $46.11 billion, ahead of consensus, even as operating expenses and R&D spending rose strongly year-on-year.
Free cash flow nearly doubled to $34.9 billion, highlighting the company’s extraordinary cash-generating capacity at scale.
For fiscal 2027, Nvidia expects GAAP and non-GAAP tax rates between 17% and 19%, excluding discrete items.
Overall, the results reinforce Nvidia’s dominance at the centre of the AI buildout, with guidance suggesting momentum remains intact rather than peaking.
The strong guide reinforces confidence in AI infrastructure spending and may buoy semiconductor peers and hyperscalers, while sustaining pressure on short positions betting on peak AI demand.
