NVIDIA (NVDA) Financials

NVIDIA’s latest quarter shows continued exceptional growth and strong profitability, but the balance sheet also reflects a business that is scaling very quickly. In Q1 fiscal 2027, revenue rose sharply to $81.6 billion, up from $68.1 billion in the prior quarter and far above the comparable period a year ago. Net income came in at $58.3 billion, while diluted EPS was $2.39. Over the last several years, NVIDIA has transformed from a cyclical semiconductor company into a much larger, far more profitable AI infrastructure leader.

What stands out most is the magnitude of the profit expansion. Revenue has gone from about $7.2 billion in Q1 2024 to $81.6 billion in Q1 2027. Gross profit in the latest quarter was $61.2 billion, and operating income reached $53.5 billion, showing that NVIDIA is not just growing fast, but growing with strong operating leverage. Despite heavy R&D spending, operating expenses remain well controlled relative to sales.

Cash generation also remains a major strength. NVIDIA generated $50.3 billion in operating cash flow in Q1 2027, compared with $36.2 billion in Q4 2026 and just $2.9 billion in Q1 2024. That kind of free-cash-flow-producing power gives the company flexibility to invest, repurchase stock, and maintain a very solid liquidity position.

The balance sheet has become much larger and more liquid. As of Q1 2027, NVIDIA held $13.2 billion in cash and equivalents and $67.3 billion in short-term investments, while total assets stood at $259.5 billion. Total liabilities were only $64.0 billion, leaving common equity at $195.5 billion. The company is clearly in a far stronger financial position than it was two to three years ago.

However, some working-capital metrics suggest the business is stretching as it scales. Accounts receivable climbed to $40.7 billion and inventories reached $25.8 billion in Q1 2027, both much higher than prior-year levels. Those increases can be normal during a rapid growth cycle, but they also mean investors should keep an eye on collection timing and inventory build as demand normalizes.

• Explosive revenue growth: Revenue jumped to $81.6 billion in Q1 2027 from $22.1 billion in Q4 2024, showing extraordinary multi-year growth momentum.
• Very strong profitability: Latest-quarter net income of $58.3 billion and operating income of $53.5 billion point to impressive margin expansion.
• Robust cash generation: Operating cash flow reached $50.3 billion in Q1 2027, supporting investment and capital returns.
• Excellent liquidity: NVIDIA ended Q1 2027 with $80.6 billion combined cash and short-term investments.
• Low leverage: Total liabilities of $64.0 billion are modest relative to $259.5 billion in assets and $195.5 billion in equity.
• R&D spending is rising with scale: Research and development expense was $6.3 billion in Q1 2027, reinforcing continued product investment.
• Shareholder returns continue: NVIDIA is still repurchasing stock and paying a dividend, even while investing heavily.
• Working capital is expanding: Receivables and inventory are both very large, which is common in fast growth but worth monitoring.
• Capital spending is still manageable: PP&E purchases remain relatively small versus cash flow, suggesting disciplined capex.
• Heavy share repurchases reduce cash: The company spent $19.3 billion on buybacks in Q1 2027, which is a significant use of cash.

Bottom line: NVIDIA’s financial statements still look exceptional. Revenue growth, profitability, and operating cash flow are all trending strongly higher, while the balance sheet remains highly liquid and lightly levered. The main watch items are the rising scale of receivables and inventory, plus how much cash the company continues to deploy toward buybacks as it pursues AI-led growth.