NVIDIA Q2 FY2027 Earnings — Revenue Doubles to a Record $96.2 Billion

Data Center revenue was a record $89.0 billion, up 117% from a year ago, which the company attributes to the ramp of its Blackwell Ultra infrastructure. Hyperscale revenue more than doubled to $48.7 billion. AI Clouds, Industrial, & Enterprise (ACIE) revenue rose 138% to $40.3 billion, which the company attributes to end-demand from AI natives, enterprises and sovereign customers, as well as hyperscalers utilizing AI clouds. During the quarter the company moved one customer from ACIE to Hyperscale and recast the prior-period revenue for it.^[2][3]

Edge Computing revenue was $7.2 billion, up 27% from a year ago; the company says strong sales of Blackwell workstations drove the increase, partly offset by slower consumer PC sales tempered by elevated memory and systems prices. GAAP and non-GAAP gross margin was 75.0%.^[3]

The unusual part of this report was not the quarter, it was the year ahead — “In a rare move, the chipmaker provided a revenue growth outlook for fiscal 2028 that forecast annual sales to increase 70% from the prior year. While Nvidia did not provide a specific revenue figure for fiscal 2028, the 70% growth rate is well above the 44% growth expected by analysts.” A growth rate without a revenue figure.^[1]

And the company said the ceiling is its own — “CFO Colette Kress said on a call with analysts that Nvidia expects fiscal 2028 revenue growth of 70%, while analysts were expecting 44%. Kress said that customer forecasts "point to our growth doubling next year," but she said guidance reflects supply constraints.” Customers point to doubling; guidance says 70 per cent. By the company's account, the difference reflects supply constraints. The doubling is a customer forecast relayed by the CFO, not a booked order figure.^[2]

One market is assumed at zero in that outlook — the company's commentary: “We are not assuming any Data Center compute revenue from China in our outlook.” That is narrower than CNBC's wording, “Nvidia said its outlook includes no data center sales from China.” In the second quarter, the company said, shipments of Data Center Hopper products to China were less than 1% of Data Center revenue.^[2][3]

CNBC reported — “Nvidia said it sees sales of $108 billion in the current quarter, plus or minus 2%. Analysts were expecting guidance of $104.2 billion.” $108bn against $104.2bn expected: a beat, and the sentence is arithmetically consistent with calling it one.^[2]

Fortune reported something different — “For the quarter currently underway, Nvidia guided to revenue of $91 billion plus or minus 2%, outpacing the average analyst expectation of $103.9 billion.” $91bn is below $103.9bn, so a guide of $91bn cannot be “outpacing” an expectation of $103.9bn. The sentence does not hold together on its own terms.^[1]

The company's CFO commentary says — “Revenue is expected to be $108.0 billion, plus or minus 2%.” CNBC's figure matches; Fortune's does not. The commentary was furnished to the SEC as an exhibit to a Form 8-K, which states that it shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act. The same outlook adds a condition that matters for reading it: “We are not assuming any Data Center compute revenue from China in our outlook.”^[3][6]

GAAP and non-GAAP profit differ this quarter. GAAP net income was $59.688 billion, or $2.46 per diluted share, against $26.422 billion, or $1.08, a year earlier. Non-GAAP net income was $53.954 billion, or $2.22, against $24.763 billion, or $1.01, a year earlier; $1.87 was the prior quarter's non-GAAP figure. CNBC's live coverage paired the non-GAAP $53.95 billion and $24.76 billion with $1.87 as the year-ago figure, which is the prior quarter's number.^[2][3]

Part of GAAP profit is not the chip business — net gains from equity securities were $7.8 billion in the quarter, after $15.9 billion in the first quarter. They sit in GAAP net income; the company excludes them from non-GAAP net income. CNBC's line “Nvidia's net income included a $7.8 billion gain on equity investments” is accurate for GAAP net income. A gain on holdings is real money and not an operating result; the first quarter's was about twice as large.^[2][3]

And the non-GAAP basis changed this year — Fortune: “The company began including stock-based compensation in its non-GAAP results, which makes direct comparisons to previous fiscal years less of an apples-to-apples distinction.” The company's note is narrower: “The historical non-GAAP financial information presented has been updated to include stock-based compensation expense.” Comparisons inside this release use the new basis; comparisons with non-GAAP figures as originally published for earlier years do not.^[1][3]

Concentration is the other half of the picture. About 92.5% of revenue, $89.0 billion of $96.2 billion, came from the Data Center market platform. That is a market-platform grouping; NVIDIA's reportable segments are Compute & Networking ($88.3 billion) and Graphics ($7.9 billion). CNBC put it as “The company now gets 92% of its sales from its data center unit, which includes revenue from its market-leading AI chips.” CNBC also recalled what Huang said on the May earnings call about widening that base — “"The easiest go-to-market, of course, is the hyperscaler, because there are only five or six of them," Huang said on the May earnings call. "The rest of them, the rest of the industry, represents 250,000 companies around the world."”^[2][3]

Indebtedness is a named risk factor in the 10-Q for the quarter — “Our indebtedness may adversely affect our financial condition and cash flows from operations.” As of July 26, 2026, NVIDIA had $33.5 billion aggregate principal amount of senior notes outstanding, after issuing $25.0 billion of senior unsecured notes in June. It also has a $25.0 billion commercial paper program; that is a capacity, and no commercial paper was outstanding at quarter end.^[2][4]

The near-term maturity wall moved by more than five times in a single quarter — debt due in one to five years was $15.0 billion as of July 26, 2026, against $2.75 billion as of April 26, 2026, as CNBC also reported: “The quarterly filing said $15 billion of debt is due in one to five years. In its last quarterly filing, Nvidia reported $2.75 billion of debt due in one to five years.”^[2][4][5]

On the share price, the sources do not agree on the size of the move. CNBC — “The stock jumped 4% on the company's forecast for next fiscal year.” Fortune — “Shares of Nvidia which had initially declined slightly after the earnings report, reversed course and increased by more than 5% in after hours trading as company executives discussed the results on the conference call.” 4% and “more than 5%” are the two published figures; both describe moves after the report, both upward.^[1][2]

But the day after has its own record, according to CNBC — “Nvidia has seen its stock retreat the day after reporting results in each of the previous four quarters — despite meeting or beating estimates for earnings per share, revenue and forward guidance.” “Over the past year, Nvidia has beaten estimates for all the top-line metrics – with the lone exception of the second quarter of last year, when it simply met guidance forecasts – and yet has still been punished by investors during the subsequent trading day, according to Bespoke Data.” On the day itself — “Nvidia shares were down about 1% in the last hour of regular trading, dropping for the eighth time in nine days.” CNBC's record is that results met or beat estimates in each of the four previous quarters and the stock still fell the next trading day.^[2]

The year's context, per CNBC — “But following a historic three-year rally, investors have somewhat cooled on the stock this year, sending it up just 13% as of Wednesday's close, slightly outperforming the Nasdaq. While the business continues to hum along, competition is on the horizon from Advanced Micro Devices, Google and others. And the company faces soaring memory costs as a worldwide shortage shows no signs of abating.” And the framing the company gave it, per Fortune — “"AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue," said Jensen Huang, founder and CEO of Nvidia in a statement.”^[1][2]