NVIDIA Corporation
NVDA · Nasdaq
Next quarter
Expected to report Nov 18, 2026 — estimated from last year’s reporting date.
Consensus is $2.47 EPS for Oct 2026 across 13 estimates, ranging $2.34 to $2.70.
NVDA Jul 2026
- 6.22%
- +8.74%
- $2.09
- $2.22
- —
- $96.22B
Reported results
- $96.22B
- 74.98%
- $63.73B
- 66.24%
- $59.69B
- $2.46
Highlights
- Revenue: Q2 FY2027 revenue was $96.2 billion, up 18% sequentially and 106% year over year, with non-GAAP EPS of $2.22 beating the $2.09 consensus by 6.22%.
- Data Center: Revenue reached $89.0 billion, up 18% sequentially and 117% year over year, accounting for roughly 93% of company revenue.
- Blackwell Ultra: The ramp of Blackwell Ultra infrastructure drove the Data Center increase, while Vera Rubin began full production and is expected to support the next phase of AI infrastructure demand.
- Profitability: GAAP gross margin was 75.0%, up 2.6 percentage points year over year and broadly flat sequentially; GAAP operating income rose 124% year over year to $63.7 billion.
- Forward outlook: NVIDIA expects Q3 revenue of $108.0 billion, plus or minus 2%, despite assuming no Data Center compute revenue from China; gross margin is guided to 74.0%.
- AI infrastructure commitments: Supply and capacity commitments rose to $279 billion from $119 billion last quarter, while total disclosed future commitments reached $366 billion.
- Capital deployment: NVIDIA returned approximately $26.0 billion in Q2 through $19.7 billion of repurchases and $6.0 billion of dividends, and ended the quarter with $99.3 billion of remaining repurchase authorization.
- Cash generation: Six-month operating cash flow was $74.4 billion and free cash flow was $69.9 billion, although accounts receivable rose to $63.1 billion as extended payment terms supported large customer builds.
- Risk profile: NVIDIA is effectively foreclosed from China’s Data Center compute market, while new commitments include $105 billion of capped SB Energy guarantees supporting approximately 4.25 gigawatts of OpenAI-related capacity.
Analysis
NVIDIA’s Q2 FY2027 was another acceleration quarter, led overwhelmingly by AI infrastructure. Revenue of $96.2 billion rose 18% from Q1 and 106% from a year earlier, while non-GAAP EPS of $2.22 exceeded the $2.09 consensus by 6.22%. GAAP EPS was $2.46, versus $2.39 in the prior quarter and $1.08 a year ago. GAAP operating income increased 19% sequentially to $63.7 billion and 124% year over year, but GAAP net income rose only 2% sequentially to $59.7 billion because the prior quarter benefited from higher investment gains.
The print was defined by the scale and breadth of the Data Center buildout. Data Center revenue was $89.0 billion, up 117% year over year, driven by Blackwell Ultra; Hyperscale revenue increased 102% and AI Clouds, Industrial, & Enterprise revenue increased 138%. NVIDIA said Vera Rubin was ramping into full production, with Rubin systems beginning production shipments in Q3. The company also materially expanded its financial and operating commitments to secure future supply, cloud capacity and infrastructure. Q3 guidance for $108.0 billion of revenue implies another 12% sequential increase at the midpoint, although it assumes no China Data Center compute revenue. Gross margin is expected to moderate to 74.0% from 75.0% as the product mix evolves.
AI infrastructure demand
NVIDIA’s results increasingly resemble an AI infrastructure platform rather than a conventional chip business. Data Center revenue reached $89.0 billion, or about 93% of total revenue, increasing 18% sequentially and 117% year over year. The company attributed the growth to the Blackwell Ultra infrastructure ramp, with demand broadening beyond a single leading AI lab.
- Customer mix: Hyperscale revenue was $48.7 billion, up 13% sequentially and 102% year over year, while AI Clouds, Industrial, & Enterprise revenue was $40.3 billion, up 25% sequentially and 138% year over year.
- Segment economics: Compute & Networking revenue rose 114% year over year to $88.3 billion, and segment operating income increased 121% to $62.7 billion.
- Geographic exposure: Customers headquartered outside the United States represented 38% of revenue, up from 30% a year earlier; the United States accounted for $60.1 billion, Taiwan $27.0 billion and China $7.9 billion.
Blackwell and Vera Rubin
The product cycle remains central to the outlook. Blackwell continued to account for the majority of system shipments, while NVIDIA said Vera Rubin had entered full production and would begin production shipments in the third quarter. The company is positioning Rubin as a broader platform spanning CPUs, accelerators, networking, software and infrastructure design.
- Next platform: Vera Rubin racks were running at partners including CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius.
- Inference and networking: NVIDIA said Groq 3 LPX was in full production and introduced Spectrum-6 switching, Vera CPUs, BlueField-4 security technology and the DSX platform for designing and operating AI factories.
- Demand constraint: NVIDIA said it was experiencing supply constraints and increased supply and capacity commitments to $279 billion from $119 billion last quarter to support current and future architectures.
Margins and operating leverage
Profitability remained unusually high despite substantial investment in research, infrastructure and employees. GAAP gross margin was 75.0%, compared with 74.9% in Q1 and 72.4% a year ago. NVIDIA attributed the year-over-year improvement to the Blackwell Ultra mix, while noting that inventory and excess-purchase provisions still reduced Q2 gross margin by 0.8 percentage points.
- Operating expenses: GAAP operating expenses increased 10% sequentially and 55% year over year to $8.4 billion, including research and development expense of $7.1 billion.
- Investment in compute: Research and development expense rose 64% year over year, driven partly by a 127% increase in compute infrastructure costs.
- Outlook: Q3 revenue guidance is $108.0 billion, plus or minus 2%, while GAAP and non-GAAP gross margin are both expected at 74.0% and operating expenses at $9.2 billion and $9.0 billion, respectively.
Cash and capital allocation
NVIDIA generated substantial cash while simultaneously funding ecosystem investments, inventory and infrastructure commitments. Six-month operating cash flow reached $74.4 billion, up from $42.8 billion a year earlier, and free cash flow was $69.9 billion versus $39.6 billion. The company said higher receivables reflected extended payment terms on large, multi-quarter agreements with investment-grade customers.
- Shareholder returns: Q2 repurchases totaled $19.7 billion for 94 million shares, while dividends totaled $6.0 billion. The company had $99.3 billion of repurchase authorization remaining at quarter-end.
- Liquidity: Cash, cash equivalents and marketable debt securities totaled $56.6 billion, alongside $42.8 billion of marketable equity securities.
- Funding expansion: NVIDIA issued $25.0 billion of senior unsecured notes in June, ending the quarter with $33.5 billion of aggregate principal debt outstanding.
China and infrastructure risk
The quarter also made clear that NVIDIA’s growth is being pursued with materially greater counterparty, execution and regulatory exposure. The company said it remained effectively foreclosed from China’s Data Center compute market, and Q3 guidance assumes no China Data Center compute revenue. H200 shipments under the current licensing program represented less than 1% of Q2 Data Center revenue, and NVIDIA recorded a $0.4 billion first-half charge tied to H200 excess inventory and purchase obligations.
- Infrastructure guarantees: NVIDIA signed SB Energy guarantees capped at $105 billion for leases covering approximately 4.25 gigawatts of IT load tied to OpenAI, with the first phase expected to begin in fiscal 2029.
- AI cloud model: The company committed $36 billion under agreements with AI clouds that procure NVIDIA infrastructure; NVIDIA may have to purchase unused capacity if those clouds cannot sell it to third parties.
- Customer concentration: One direct customer represented 16% of Q2 revenue, and three direct customers represented 16%, 15% and 13% of first-half revenue.
