GrossMargins News & Analysis

Nvidia (NVDA) Maintains 75% Margins with 23x P/E Ratio Forecast

Nvidia (NVDA) reported a non-GAAP gross margin of 75.0% for Q1 FY2027, maintaining that margin level for Q2 with guidance of 75.0% ± 50 basis points. The company achieved $91.0 billion in revenue, reflecting an 85.23% year-over-year growth. Additionally, Nvidia posted a free cash flow of $48.554 billion for the quarter and $96.575 billion for FY2026, with a $80.0 billion buyback authorization announced in May. These stable margins and strong cash flow make Nvidia a compelling investment in the AI sector, despite competition. This is important for investors to note as it highlights strong profitability amidst market uncertainties.