Both Revenue and Profit Double
NVIDIA announced its financial results for the second quarter of fiscal year 2027. Revenue for the quarter ended July 26 reached $96.2 billion, up 18% sequentially and 106% year-over-year. GAAP diluted earnings per share were $2.46, and non-GAAP diluted earnings per share were $2.22, up 128% and 120% year-over-year, respectively.
Both GAAP and non-GAAP gross margins for the quarter were 75%. GAAP operating income reached $63.734 billion, a 124% increase year-over-year; net income reached $59.688 billion, a 126% increase year-over-year. The results indicate that investments in AI infrastructure are still rapidly translating into revenue and profit for NVIDIA.
Jensen Huang stated that artificial intelligence has reached an inflection point, with AI-generated results creating productivity and profit, and computing power itself being converted into revenue. Compared to a year ago when construction was primarily driven by a few labs, multiple leading-edge AI labs, startups, open-source models, and physical AI projects are now expanding simultaneously.
Data Center Revenue Reaches $89 Billion
Data Center segment revenue for Q2 reached $89 billion, up 18% sequentially and 117% year-over-year, remaining NVIDIA's most important growth driver.
The Vera Rubin platform has entered full-scale production, with racks being deployed by partners including CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud, and Nebius. The company also introduced the Vera CPU for AI agents, the Groq 3 LPX inference accelerator, and a new generation of networking and storage security products.
NVIDIA is also collaborating with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR, planning to gradually mobilize over $500 billion in third-party capital for AI infrastructure construction. These partnerships help expand customers' computing investment capacity, but the market will continue to monitor the AI industry's financing cycle and ultimate return on investment.
Q3 Revenue Guidance Raised to $108 Billion
NVIDIA expects Q3 revenue to reach $108 billion, plus or minus 2%, higher than previous market expectations. This guidance does not include data center compute revenue from China.
The company expects GAAP and non-GAAP gross margins for Q3 to be approximately 74%, plus or minus 0.5 percentage points, slightly down from 75% in Q2. Memory price increases, new platform production ramp-up, and supply chain investments may put pressure on margins.
In the second quarter, NVIDIA returned approximately $26 billion to shareholders through stock repurchases and cash dividends. The remaining share repurchase authorization stands at approximately $99 billion. The next quarterly cash dividend of $0.25 per share will be paid on October 1.
For NVDA, the $96.2 billion revenue, $89 billion Data Center revenue, and $108 billion Q3 guidance continue to support the growth narrative; areas requiring vigilance include margin declines, supply constraints, and the market's reassessment of AI capital expenditure returns.
