Key Takeaways
- Nvidia delivered Q2 revenue of $96.2 billion, surpassing analyst projections of $92.27 billion, while earnings per share reached $2.22 versus the anticipated $2.09
- Data Center segment generated $89 billion in revenue, representing a 117% year-over-year increase and exceeding the $85.4 billion consensus
- The company projected Q3 revenue of $108 billion, significantly above Wall Street’s $103.9 billion expectation
- Q3 gross margin outlook of 74% reflected a decline from Q2’s 75%, temporarily pressuring shares
- NVDA shares climbed approximately 4% during after-hours trading following the earnings presentation
Nvidia unveiled its fiscal second-quarter 2027 financial performance Wednesday evening, delivering revenue of $96.2 billion. The figure exceeded analyst consensus of $92.27 billion and marked a substantial 106% increase compared to the year-ago period.
Nvidia $NVDA Q2’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $96.2B (Est. $92.2B) 🟢; +106% YoY
🔹 Adj. EPS: $2.22 (Est. $2.10) 🟢; +120% YoY
🔹 Data Center: $89.0B (Est. $85.8B) 🟢; +117% YoY
🔹 Adj Gross Margin: 75.0% (Est. 75%) 🟡; +250 bps YoYQ3 Guide:
🔹 Revenue: $108.0B +/- 2%… pic.twitter.com/zVimcTYVot— Wall St Engine (@wallstengine) August 26, 2026
Shares closed regular trading at $209.76 before climbing roughly 4% in extended-hours activity after management concluded its earnings conference call.
Non-GAAP earnings per share registered at $2.22, outperforming the $2.09 Street forecast. On a GAAP basis, net income more than doubled to reach $59.7 billion.
The Data Center business emerged as the primary growth driver, generating $89 billion during the quarter. This figure represented a 117% year-over-year surge and an 18% sequential gain, comfortably beating the $85.4 billion projection.
Gross margins remained stable at 75% for the quarter on both GAAP and non-GAAP measures. The company distributed approximately $26 billion to shareholders via stock repurchases and dividend payments, retaining roughly $99 billion under its existing buyback authorization.
CEO Jensen Huang delivered a straightforward assessment during the investor call: “AI has reached its inflection point. Now compute is revenue. And demand is accelerating.”
Third Quarter Forecast Exceeds $100 Billion Threshold
Looking ahead to the third quarter, Nvidia provided revenue guidance of $108 billion, with a variance of plus or minus 2%. This projection exceeded the Street consensus of approximately $103.9 billion and places Nvidia among an elite group. Only nine S&P 500 constituents have previously recorded $100 billion or more in quarterly revenue.
The Q3 forecast excludes any Data Center compute revenue contribution from China, reflecting continued export restrictions on advanced AI processing chips. Management set gross margin guidance at 74% for the upcoming quarter, representing a one-percentage-point decline from Q2.
The margin compression triggered brief volatility in the stock immediately following the release before shares rebounded.
Thomas Monteiro, senior analyst at Investing.com, highlighted that the 74% guidance represents the first sequential margin contraction of this growth cycle. He identified escalating memory costs, financing expenses and infrastructure investments as continued headwinds.
Supply Obligations Expand to $279 Billion
Nvidia’s supply and capacity obligations expanded dramatically to $279 billion as of July 26, jumping from $119 billion in the previous quarter. The substantial increase stems primarily from memory procurement and manufacturing capacity reservations for both current and upcoming product lines.
The breakdown shows $92 billion coming due during the remainder of fiscal 2027, with $87 billion expected in fiscal 2028, and $88 billion in fiscal 2029.
CFO Colette Kress indicated that customer demand projections suggest growth could double next year, though Nvidia anticipates approximately 70% growth due to supply chain limitations.
Vera Rubin, Nvidia’s newest platform, achieved full production status during the quarter. The system is currently operational at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius.
Nvidia also unveiled infrastructure collaborations with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR, collectively targeting over $500 billion for AI infrastructure development. These arrangements await final agreements.
Jensen announced plans to implement a price increase in Q1, maintaining that customers can achieve substantial returns on investment from Nvidia systems.
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