TechFlow news — NVIDIA (NVDA.O) reported its first-quarter financial results after the U.S. market close on Wednesday, showing record-breaking revenue of $26 billion for the quarter, up 18% sequentially and 262% year-over-year. Adjusted earnings per share (EPS) reached $6.12, a 19% increase from the previous quarter and a 461% surge compared to the same period last year, while net income soared 628% to $14.88 billion.
This marks the third consecutive quarter in which NVIDIA has achieved more than 200% year-over-year revenue growth, surpassing both Wall Street expectations of $24.6 billion in revenue (a 240% increase) and the company's own guidance of $24 billion. Analysts had previously expected net profit to rise 540% to $13.1 billion. The company’s gross margin came in at 78.9%, significantly higher than anticipated; analysts had projected a modest expansion from the prior quarter's 76.7% to around 77%. EPS also exceeded estimates of $5.65, more than five times the $1.09 reported a year earlier.
The company forecasts second-quarter revenue of $28 billion (±2%), ahead of market expectations of $26.8 billion, but expects non-GAAP gross margins to decline to 75.5% (±50 basis points), with full-year margins narrowing to approximately 70%, broadly in line with market outlook. The company also stated that GAAP and non-GAAP operating expenses are expected to be approximately $4 billion and $2.8 billion respectively, with full-year operating expenses projected to grow between 40% and 45%.
Starting June 10, NVIDIA will complete a 10-for-1 stock split. Shareholders of record before the market close on June 6 will receive nine additional shares for each common share held. This aims to make ownership more accessible for employees and investors at a lower price point. Additionally, the company will raise its dividend by 150% post-split to $0.01 per share, payable to shareholders of record by June 11.
Analysts note that NVIDIA’s stock has surged nearly 25-fold over the past five years. Alphabet, Amazon, and Tesla all executed stock splits in 2022.
