NVIDIA (NASDAQ:NVDA) Posts Quarterly Earnings Results, Beats Estimates By $0.11 EPS

NVIDIA (NASDAQ:NVDA) issued its earnings results on Wednesday. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11, FiscalAI reports. The company had revenue of $81.62 billion during the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a net margin of 55.60% and a return on equity of 97.37%. The business’s revenue for the quarter was up 85.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.81 EPS.

Here are the key takeaways from NVIDIA’s conference call:

• Revenue and profitability hit records, with Q1 revenue of $82 billion up 85% year over year and free cash flow of $49 billion, while operating income also reached a new high.
• Data center growth remained exceptionally strong, led by Blackwell ramping across hyperscalers, AI clouds, model makers, and sovereign customers. Data center revenue rose to $75 billion, up 92% year over year.
• NVIDIA boosted shareholder returns by raising the quarterly dividend from $0.01 to $0.20 per share and authorizing an additional $80 billion in share repurchases.
• Management introduced a new reporting framework splitting the business into Data Center and Edge Computing, with Data Center further divided into Hyperscale and ACIE to better reflect AI infrastructure demand.
• Guidance points to continued growth, with Q2 revenue expected at $91 billion, plus or minus 2%, and management reiterated confidence in $1 trillion of Blackwell and Rubin revenue from 2025 through calendar 2027.

NVIDIA Trading Up 1.3%

NASDAQ:NVDA opened at $223.47 on Thursday. The company has a current ratio of 3.91, a quick ratio of 3.24 and a debt-to-equity ratio of 0.05. The stock has a market capitalization of $5.41 trillion, a price-to-earnings ratio of 45.61, a PEG ratio of 0.69 and a beta of 2.25. The firm has a fifty day simple moving average of $194.82 and a two-hundred day simple moving average of $188.75. NVIDIA has a 12 month low of $129.16 and a 12 month high of $236.54.

NVIDIA Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be issued a $0.25 dividend. The ex-dividend date is Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. NVIDIA’s dividend payout ratio is 0.82%.

NVIDIA announced that its board has approved a share repurchase program on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its stock is undervalued.

Insider Transactions at NVIDIA

In related news, Director John Dabiri sold 3,004 shares of the firm’s stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $184.90, for a total transaction of $555,439.60. Following the transaction, the director directly owned 14,788 shares of the company’s stock, valued at $2,734,301.20. This trade represents a 16.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Ajay K. Puri sold 300,000 shares of the firm’s stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $182.25, for a total transaction of $54,675,000.00. Following the transaction, the executive vice president directly owned 3,018,547 shares in the company, valued at $550,130,190.75. The trade was a 9.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 906,336 shares of company stock valued at $162,802,518. Corporate insiders own 4.17% of the company’s stock.

Institutional Trading of NVIDIA

Several hedge funds have recently added to or reduced their stakes in NVDA. Longfellow Investment Management Co. LLC increased its stake in shares of NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after purchasing an additional 67 shares in the last quarter. Spurstone Advisory Services LLC purchased a new position in shares of NVIDIA in the second quarter worth about $40,000. Inspire Investing LLC purchased a new position in shares of NVIDIA in the fourth quarter worth about $44,000. AlphaCentric Advisors LLC purchased a new position in shares of NVIDIA in the fourth quarter worth about $45,000. Finally, EDENTREE ASSET MANAGEMENT Ltd purchased a new position in shares of NVIDIA in the second quarter worth about $54,000. Institutional investors own 65.27% of the company’s stock.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA delivered another record quarter, with data center revenue hitting $75.2 billion and networking revenue up sharply, reinforcing its leadership in AI infrastructure. Article Title
• Positive Sentiment: The company boosted shareholder returns with a massive $80 billion buyback and a much higher dividend, signaling management confidence and strong cash generation. Article Title
• Positive Sentiment: Several articles highlighted NVIDIA’s expanding AI opportunity, including new Vera Rubin/CPU products and partnerships that could extend growth beyond hyperscale cloud customers. Article Title
• Neutral Sentiment: Wall Street remains highly divided on the near-term move: bullish reports point to underappreciated growth, while others say expectations were so high that the market may have already priced in much of the beat. Article Title
• Neutral Sentiment: China is still a major overhang. Even though the U.S. cleared some H200 sales, NVIDIA said it is not assuming any China data-center revenue in its outlook, limiting upside from that market for now. Article Title
• Negative Sentiment: Investors are also focused on intensifying AI-chip competition from hyperscalers and rivals like AMD, Intel, and Huawei, which is tempering enthusiasm after the earnings beat. Article Title

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Zacks Research upgraded shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, February 25th. Cantor Fitzgerald boosted their target price on shares of NVIDIA from $300.00 to $350.00 and gave the company an “overweight” rating in a research report on Thursday, May 14th. Morgan Stanley set a $288.00 target price on shares of NVIDIA in a research report on Thursday. Susquehanna restated a “positive” rating and issued a $275.00 target price (up from $250.00) on shares of NVIDIA in a research report on Tuesday, May 12th. Finally, Weiss Ratings restated a “buy (b)” rating on shares of NVIDIA in a research report on Friday, April 10th. Four investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, NVIDIA presently has a consensus rating of “Buy” and a consensus target price of $283.12.

About NVIDIA

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.