NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) just reported quarterly net income of $58.32 billion, up 210.63% year over year, for the fiscal first quarter of 2027 ended in the period reported on May 20, 2026. Over the trailing 12 months, Nvidia has now brought in more than $250 billion (a quarter trillion dollars), making its current valuation, at its current run rate, seem more than reasonable.
That said, the number I think more investors may pay attention to is NVIDIA’s operating profit, which more than tripled in twelve months. That tripling comes at a scale that already dwarfs the annual earnings of most companies in the S&P 500.
That figure represents reported GAAP net income for a single three-month period, straight from the filing.
What It Means
A tripling of profit at a company already generating tens of billions per quarter tells you the AI infrastructure cycle is still compounding. Revenue for the quarter came in at $81.61 billion, up 85.2% year over year, beating the $79.12 billion consensus by 3.16%. Operating income of $53.54 billion rose 147.42%, and non-GAAP gross margin widened to 75.0% from 60.8% a year earlier.
The engine behind the number is NVIDIA’s data center segment. This business alone brought in more than $75 billion of revenue (up 92% year over year), with data center networking alone at $14.8 billion, up 199%. Free cash flow reached $48.55 billion for the quarter, and that’s what companies are ultimately valued off of.
The bottom line is that NVIDIA’s profitability is now scaling faster than its revenue, which is what margin expansion at hyperscale looks like.
Market Reaction
Shares closed at $221.54 on the filing day of May 20, 2026, up from $195.95 at the prior quarter’s filing on February 25, 2026. The stock has since drifted lower, down nearly 12% over the past month and off 2.35% on the current session at $192.94. Year to date, NVDA is still up 6.07%, and one-year return sits at 29.05%. Over five years, the stock has returned 867.71%.
Bull Case
The forward setup is where this gets interesting for long-term holders. Management guided fiscal Q2 2027 revenue to $91.0 billion, plus or minus 2%, with non-GAAP gross margin held at 75.0%. That guidance excludes any China data center compute revenue, meaning the number assumes zero contribution from a market that used to be material. Any thaw is pure upside.
Capital return has finally caught up with the earnings power. The board raised the quarterly dividend from $0.01 to $0.25 per share and authorized an additional $80.0 billion in buybacks, on top of $38.5 billion remaining under the prior authorization. Roughly $20.0 billion was returned to shareholders in the quarter. Supply commitments of $119.0 billion underwrite the Blackwell 300 ramp and the newly announced Vera Rubin platform.
Valuation is the counterweight. The chip giant’s forward P/E stands at 23x, PEG at 0.616, with analyst consensus target at $301.62 and 48 Buy ratings against 1 Sell. CEO Jensen Huang framed the setup bluntly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.”
Bottom Line
A 210.63% jump in quarterly net income at a company with a $4.67 trillion market cap is the kind of earnings report that reframes the narrative for retirement-focused holders: the mega-cap earnings base is still compounding.
With forward guidance of $91.0 billion in Q2 revenue, an $80.0 billion buyback authorization, and a 25-fold dividend hike, NVIDIA is signaling that the AI cycle it powers has years of runway left. The stock has cooled off its peak, trading below its 50-day moving average of $209.90 and closer to its 200-day at $190.94. For long-term investors, the profit line is doing the talking. The next test comes when fiscal Q2 2027 results land.
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