TLDR
- Nvidia posted Q2 revenue of $96.2 billion, beating estimates of $92.27 billion, with earnings per share of $2.22 vs. the $2.09 forecast
- Data Center revenue hit $89 billion, up 117% year over year, topping estimates of $85.4 billion
- Q3 revenue guidance came in at $108 billion, well above the Street forecast of $103.9 billion
- Gross margin guidance for Q3 was 74%, down from 75% in Q2, which initially weighed on the stock
- NVDA rose around 4% in after-hours trading following the earnings call
Nvidia reported fiscal second-quarter 2027 results after the bell on Wednesday, posting revenue of $96.2 billion. That beat Wall Street estimates of $92.27 billion and represented a 106% jump from the same period a year ago.
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
The stock was trading at $209.76 at close before rising roughly 4% in after-hours trading once the earnings call wrapped up.
Earnings per share came in at $2.22 on a non-GAAP basis, above the $2.09 analysts had expected. GAAP net income more than doubled to $59.7 billion.
Data Center revenue was the standout, hitting $89 billion for the quarter. That was up 117% year over year and 18% from the prior quarter, and it cleared the $85.4 billion estimate comfortably.
Both GAAP and non-GAAP gross margins held at 75% for the quarter. Nvidia also returned approximately $26 billion to shareholders through buybacks and dividends, with about $99 billion still remaining under its repurchase authorization.
CEO Jensen Huang summed it up bluntly on the investor call: “AI has reached its inflection point. Now compute is revenue. And demand is accelerating.”
Q3 Guidance Tops $100 Billion
For the third quarter, Nvidia guided revenue to $108 billion, plus or minus 2%. That topped the Street consensus of around $103.9 billion and puts Nvidia in rare company. Only nine S&P 500 companies have previously reported $100 billion or more in a single quarter.
The Q3 outlook, however, assumes no Data Center compute revenue from China, due to ongoing export restrictions on advanced AI processors. Gross margin guidance for the quarter was set at 74%, down one percentage point from Q2.
That margin step-down was enough to cause the stock to wobble briefly after the initial release before recovering.
Thomas Monteiro, senior analyst at Investing.com, noted the 74% guidance marks the first sequential margin decline of the current cycle. He flagged rising memory, financing and infrastructure costs as ongoing pressure points.
Supply Commitments Jump to $279 Billion
Nvidia’s supply and capacity commitments surged to $279 billion as of July 26, up from $119 billion the prior quarter. The increase was driven mainly by memory and manufacturing capacity for current and future products.
Of that total, $92 billion is due in the remainder of fiscal 2027, $87 billion in fiscal 2028, and $88 billion in fiscal 2029.
CFO Colette Kress said customer forecasts point to growth doubling next year, though Nvidia expects around 70% growth given supply constraints.
Vera Rubin, Nvidia’s latest platform, entered full production during the quarter. It is now running at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius.
Nvidia also announced infrastructure partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR, targeting more than $500 billion for AI infrastructure buildout. Those deals remain subject to definitive agreements.
Jensen said a price increase is set to take effect in Q1, arguing customers can generate strong returns from Nvidia systems.
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