NVIDIA (NVDA -2.85%) reported the results of its fiscal 2022 first quarter (ended May 2, 2021), and the results were remarkable even by historical standards. Revenue of $5.66 billion soared 84% year over year, while its diluted earnings per share (EPS) climbed to a record $3.03, up 106%. It's worth noting that revenue and non-GAAP EPS grew 13% and 18%, respectively compared to the fourth quarter of 2021.
The results were driven higher by unexpected strength across NVIDIA's operating segments. While market watchers had been expecting a slowdown in the demand for processors used in gaming, revenue from the segment jumped 106% to a record $2.76 billion. Data center revenue was equally stout, surging 79% year over year to $2.05 billion. The professional visualization segment, though much smaller, did its part, delivering record revenue of $372 million, up 21%.
Operating expenses were also significantly higher, but the increase was slower than that of sales growth, sending more profits to the bottom line. Research and development (R&D) and sales, general, and administrative (SG&A) costs climbed 57% and 77%, respectively, with overall operating expenses increasing 63%. At the same time, NVIDIA generated free cash flow of $1.56 billion.
Management is expecting the company's robust growth to continue. For the upcoming second quarter, management is forecasting revenue of $6.3 billion (plus or minus 2%), which would represent year-over-year growth of 63% at the midpoint of its guidance.
NVIDIA also reiterated its plan to initiate a four-for-one stock split. The move was approved by the board of directors but is contingent on approval at the annual meeting of stockholders, as it will require the increase of the number of authorized shares from 2 billion to 4 billion. It will be payable in the form of a stock dividend after the close of trading on July 19 to shareholders of record on June 21.