NVIDIA (NASDAQ:NVDA) Q2 FY2027: Revenue Doubles to $96.2B, Data Center Hits $89B

NVIDIA Corporation (NASDAQ: NVDA) reported second-quarter fiscal 2027 results on August 26, 2026, with revenue of $96.2 billion, up 106.0% year over year and up 18% sequentially from $81.6 billion in Q1 FY2027. GAAP diluted EPS came in at $2.46, up 127.8% from $1.08 a year earlier, while adjusted diluted EPS reached $2.22, up 119.8% from $1.01.

Q2 FY2027 Results

• Revenue: $96.2 billion, up 106.0% year over year; Data Center revenue of $89.0 billion, up 117% year over year and 18% sequentially
• GAAP gross margin: 75.0%, up 2.6 percentage points from 72.4% in Q2 FY2026
• GAAP operating income: $63.7 billion, up 124.1% year over year; GAAP operating margin of 66.2%, expanding 5.4 percentage points year over year
• GAAP net income: $59.7 billion, up 125.9% year over year; adjusted net income of $54.0 billion, up 117.9%
• Shareholder returns: Approximately $26.0 billion returned in the quarter via share repurchases and dividends; approximately $99.0 billion remaining under repurchase authorization

What Drove the Results

Revenue and operating income both expanded at triple-digit rates year over year, with GAAP operating margin widening 5.4 percentage points as gross margin improvement outpaced a 55% year-over-year increase in GAAP operating expenses to $8.4 billion. The Data Center segment was the primary growth engine, contributing $89.0 billion of the quarter's $96.2 billion in total revenue. Edge Computing revenue reached $7.2 billion, up 27% year over year and 13% sequentially.

GAAP net income of $59.7 billion compared to adjusted net income of $54.0 billion, a divergence of approximately $5.7 billion driven primarily by other income of $7.8 billion in the quarter, partially offset by the associated tax impact. Operating cash flow for the quarter was $24.1 billion, with capital expenditures of $2.7 billion, up 41.3% year over year from $1.9 billion, yielding free cash flow of $21.4 billion.

In its press release, NVIDIA announced that the Vera Rubin platform has ramped into full production, with racks running at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure, and Nebius. The company also disclosed strategic partnerships to establish independent compute financing platforms with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR, targeting the mobilization of over $500 billion of third-party capital for AI infrastructure buildout over time, subject to definitive agreements. NVIDIA CEO Jensen Huang stated: "AI has reached its inflection point. Its tokens are productive and profitable. Now, compute is revenue."

What Comes Next

For Q3 FY2027, NVIDIA guided revenue of $108.0 billion, plus or minus 2%, with GAAP and non-GAAP gross margins expected at 74.0%, plus or minus 50 basis points. GAAP operating expenses are expected at approximately $9.2 billion and non-GAAP operating expenses at approximately $9.0 billion. Notably, NVIDIA stated it is not assuming any Data Center compute revenue from China in its Q3 outlook. The company will pay a quarterly cash dividend of $0.25 per share on October 1, 2026, to shareholders of record as of September 10, 2026.

Wall Street View

Wall Street sentiment heading into the report was broadly constructive, with the analyst community carrying a strong buy-leaning consensus. The Q3 revenue guidance of $108.0 billion, issued without any assumed contribution from China's Data Center compute market, will be the focal point for analysts recalibrating forward estimates. Shares closed at $209.66 on Wednesday, August 26, 2026, down 1.59%, while the S&P 500 was essentially flat, gaining 0.02%.

Investor Takeaway

NVIDIA's Q2 results confirm that Data Center demand remains the structural anchor of the business, with that segment now representing approximately 92% of total revenue. The Q3 guidance of $108.0 billion, achieved entirely without assumed China Data Center compute revenue, suggests the company views its non-China AI infrastructure pipeline as sufficient to sustain sequential growth, a forward indicator that may carry more weight for investors than the already-reported Q2 beat.