Nvidia beats estimates, stock falls

Nvidia reported first-quarter fiscal 2027 revenue of $81.6 billion on May 20, up 85% from a year earlier, and forecast second-quarter revenue of $91.0 billion, plus or minus 2%. The company also raised its quarterly dividend to $0.25 a share from $0.01 and added $80 billion to its share repurchase authorization. Yet the stock fell after the report, extending a pattern in which better-than-expected numbers have not produced a post-earnings rally. Nvidia’s investor materials described the quarter as record-setting, while CNBC reported the shares were on track for a fourth straight post-earnings decline. ### If the numbers beat, why did the stock fall? CNBC reported on May 20 that Nvidia posted adjusted earnings per share of $1.87 against analyst estimates of $1.76 and revenue of $81.62 billion against estimates of $78.86 billion. The same report said the stock slid after the analyst call even as guidance topped expectations. CNBC’s broader market coverage on May 21 said investors had come to expect Nvidia to beat estimates and raise its outlook during the AI boom. “People are saying, ‘We expect more,’” market strategist Sam Stovall of CFRA said, according to CNBC. (investor.nvidia.com) ### What did Nvidia actually report? Nvidia said first-quarter GAAP earnings per diluted share were $2.39 and non-GAAP earnings per diluted share were $1.87. (cnbc.com) The company said GAAP and non-GAAP gross margins were 74.9% and 75.0%, respectively, and that data center revenue reached a record $75.2 billion, up 92% from a year earlier. (cnbc.com) Jensen Huang, Nvidia’s founder and chief executive, said in the earnings release that “the buildout of AI factories” was “accelerating at extraordinary speed.” Nvidia also said it returned about $20.0 billion to shareholders in the quarter through repurchases and dividends. (investor.nvidia.com) ### What did guidance say about the next quarter? Nvidia said its outlook for the second quarter of fiscal 2027 called for revenue of $91.0 billion, plus or minus 2%. The company said it was “not assuming any Data Center compute revenue from China” in that forecast. Nvidia’s release also said it is changing how it reports its business, moving to two market platforms: Data Center and Edge Computing. (investor.nvidia.com) Within Data Center, it said it will break out Hyperscale and ACIE, which stands for AI Clouds, Industrial and Enterprise. ### Is this part of a broader pattern? (investor.nvidia.com) Motley Fool said on May 22 that this was the fourth consecutive strong Nvidia earnings report that failed to produce a post-report gain. CNBC’s live coverage on May 20 similarly said Nvidia’s stock was on a post-earnings losing streak and was on track for a fourth straight decline after results. CNBC reported in February that Nvidia shares had also fallen after a prior earnings beat, with investors pointing to concerns about whether the company’s results were enough to satisfy a market already focused on its AI leadership and valuation. (investor.nvidia.com) That earlier reaction provides context for the latest move, though Nvidia’s latest quarter again exceeded Wall Street forecasts. (cnbc.com) ### What are investors watching next? Nvidia said its increased quarterly cash dividend will be paid on June 26, 2026, to shareholders of record on June 4, 2026. The company’s first-quarter event page says the earnings webcast replay will remain available until the conference call for second-quarter fiscal 2027 results. (investor.nvidia.com) (cnbc.com)