Nvidia approves $80B buyback as AI-driven revenue surges 85% YoY
In brief
- Nvidia approved $80 billion in additional share buybacks, raising total capacity to $118.5 billion
- Quarterly revenue reached $81.6 billion, up 85% YoY, with data center revenue surging 92%
- Free cash flow hit $48.6 billion; $20 billion returned to shareholders via buybacks and dividends
- Quarterly dividend increased 25x, from $0.01 to $0.25 per share
AI Revenue Engine Drives Record Cashflows
Nvidia reported $81.6 billion in revenue for the quarter ended April 26, 2026, representing an 85% year-over-year increase. The gains were fueled almost entirely by data center operations. Data center revenue surged 92% year-over-year to $75.2 billion, accounting for the vast majority of total sales.
Free cash flow tells the real story. The company generated $48.6 billion in free cash flow during the quarter, providing the financial firepower for aggressive capital returns. Management has signaled plans to return approximately 50% of annual free cash flow to investors, establishing a sustainable shareholder distribution framework.
Aggressive Capital Return Program
Nvidia returned roughly $20 billion to shareholders through buybacks and dividends during the quarter alone. The company deployed approximately $19.7 billion in share buybacks and increased its quarterly cash dividend 25x, from $0.01 to $0.25 per share.
The new authorization carries no expiration date. As of quarter end, Nvidia had roughly $38.5 billion remaining under previous repurchase authorizations, meaning the company now has roughly $156.5 billion in total buyback firepower available.
Historical Precedent
The scale of Nvidia's capital return program is extraordinary. The combined buyback-plus-dividend package ranks among the largest capital return programs in corporate history. Only Apple has consistently deployed bigger repurchase authorizations than Nvidia.
Notably, UBS analysts had speculated that Nvidia might approve as much as $150 billion in buyback authorizations. The $80 billion authorization falls short of that upper-end estimate, though combined with existing capacity, total firepower approaches those levels.
