Nvidia Drops $26 Billion on Share Buybacks and Dividends in Single Quarter
Nvidia spent approximately $26 billion on share repurchases and cash dividends in its fiscal second quarter of 2027, which ended July 26. This is more than the $21.3 billion of free cash flow generated during the quarter and nearly 10 times capital spending for the period.
The company's board has been making room for more returns to shareholders. In May, Nvidia increased its quarterly dividend from $0.01 per share to $0.25 per share and approved an extra $80 billion of share repurchase authorization without expiration.
Nvidia designs chips and systems, while manufacturing partners own the factories that produce them. Revenue grew 106% year over year to $96.2 billion in the quarter, with net income climbing 126% to $59.7 billion. Despite this growth, capital spending was just $2.7 billion.
Nvidia's CFO Colette Kress said on the company's earnings call that its plan is to return 50% or more of its free cash flow. Year to date, it has returned 60%.