NVIDIA Corp.: Q2 FY2027 earnings call

What management said about Q2 FY2027, from the documents filed with the SEC on 26 August 2026: press release, CFO commentary. Guidance figures: 4 new, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue reached $96.2 billion: Revenue rose 18% sequentially and 106% from a year ago, with Data Center making up most of the total. Source
• Data Center revenue reached $89.0 billion: Data Center revenue rose 18% sequentially and 117% from a year ago, driven by the ramp of Blackwell Ultra infrastructure. Source
• Gross margin rose on Blackwell Ultra mix: Gross margin rose year over year on both GAAP and non-GAAP bases, as product mix shifted toward Blackwell Ultra. Source
• AI clouds broaden access to capacity: Partnered AI clouds extend access to NVIDIA infrastructure for startups, model builders, enterprises, research groups and sovereign customers. Source
• Returned $26.0 billion to shareholders: Returns combined share repurchases and cash dividends. About $99.0 billion remained under the repurchase authorization at quarter end. Source
• Commitments rose to $279 billion: Total future commitments reached $366 billion across categories, with supply and capacity the largest component. Source
• AI cloud deals include revenue share: Revenue arrives from upfront infrastructure sales, with possible shares of downstream AI cloud revenue if criteria are met. Source

“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,”

Jensen Huang, founder and CEO of NVIDIA

Guidance

What changed from last quarter

• New guidance: Third-quarter fiscal 2027 revenue expectation of $108.0 billion given; the documents show no prior third-quarter figure. Source
• New: Revenue is now shown by Market Platform and by reportable segment, following the framework the prior release said was being adopted.
• New: One company was moved from AI Clouds, Industrial, & Enterprise to Hyperscale because of a change in its business model, and prior-period revenue was recast. Source
• New: Guarantees signed in August 2026 cap exposure at $105 billion for land, power and shell at the PORTS-Pike campus in Ohio, tied to OpenAI leases; first phase expected in fiscal 2029. Source

Results and growth drivers

• Revenue reached $96.2 billion: Revenue rose 18% sequentially and 106% from a year ago, with Data Center making up most of the total. Source
• Diluted EPS and equity gains: GAAP diluted EPS was $2.46 and non-GAAP was $2.22. GAAP net income of $59.7 billion included $7.8 billion of net gains from equity securities. Source
• Operating income rose 124%: GAAP operating income was $63.7 billion, up 124% from a year ago. Non-GAAP operating income was $64.0 billion. Source

Segments and market platforms

• Data Center revenue reached $89.0 billion: Data Center revenue rose 18% sequentially and 117% from a year ago, driven by the ramp of Blackwell Ultra infrastructure. Source
• Hyperscale revenue more than doubled: Hyperscale revenue reached $48.7 billion, up 13% sequentially, on the strength of Blackwell Ultra. Source
• ACIE revenue grew 138%: AI Clouds, Industrial, & Enterprise revenue was $40.3 billion, driven by AI natives, enterprises, sovereign customers and hyperscalers using AI clouds. Source
• Edge Computing grew on workstations: Edge Computing revenue was $7.2 billion. Blackwell workstation sales drove growth, partly offset by slower consumer PC sales. Source
• China Hopper shipments under 1%: Shipments of Hopper products to China were a small share of Data Center revenue in the quarter. Source

“today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel”

Jensen Huang, founder and CEO of NVIDIA

Products and customers

• Vera Rubin racks running at partners: Management said Vera Rubin is ramping into full production, with racks running at five named cloud and AI partners. Source
• Groq 3 LPX in full production: The interactive AI inference accelerator is now in full production, according to the release. Source
• Vera CPU unveiled for AI agents: Vera is described as the first CPU built for AI agents, with broad adoption planned among leading technology providers. Source

Costs, margins and pricing

• Gross margin rose on Blackwell Ultra mix: Gross margin rose year over year on both GAAP and non-GAAP bases, as product mix shifted toward Blackwell Ultra. Source
• Margin flat sequentially, Blackwell majority: Margins were roughly unchanged from the prior quarter, and Blackwell architecture is still the vast majority of revenue. Source
• Operating expenses rose on compute costs: GAAP operating expenses rose 55% year over year and 10% sequentially. Non-GAAP rose 54% and 11%, driven by compute infrastructure and pay costs. Source
• Tax rate rose on higher revenue: GAAP effective tax rate was 16.5% and non-GAAP was 16.0%. Management attributed the year-over-year increase mainly to higher revenue. Source

“Vera Rubin, now in full production, was built to power exactly this moment.”

Jensen Huang, founder and CEO of NVIDIA

Demand and the order book

• AI clouds broaden access to capacity: Partnered AI clouds extend access to NVIDIA infrastructure for startups, model builders, enterprises, research groups and sovereign customers. Source
• Inventory built ahead of Vera Rubin: Inventory growth was tied to preparing for the Vera Rubin introduction. Source
• Supply secured for several years: Management described a supplier network securing critical components for expected demand across the next several years. Source

Cash, returns and capital

• Returned $26.0 billion to shareholders: Returns combined share repurchases and cash dividends. About $99.0 billion remained under the repurchase authorization at quarter end. Source
• Cash and securities reached $56.6 billion: Cash, equivalents and marketable debt securities rose year over year and sequentially, with higher free cash flow used for returns. Source
• Operating cash flow fell sequentially: Operating cash flow was $24.1 billion, and free cash flow was $21.3 billion on the non-GAAP reconciliation. Source
• Issued $25.0 billion senior notes: Debt proceeds are for general corporate purposes. Source

Strategy, investment and commitments

• Commitments rose to $279 billion: Total future commitments reached $366 billion across categories, with supply and capacity the largest component. Source
• Financing platforms target $500 billion: Financing platforms with named firms aim to mobilize third-party capital for AI infrastructure over time. Source
• AI cloud deals include revenue share: Revenue arrives from upfront infrastructure sales, with possible shares of downstream AI cloud revenue if criteria are met. Source
• Equity investments target AI makers: Equity investments focus on AI model makers, infrastructure financiers and private companies, subject to contingencies. Source

Coming up, as management said on 26 August 2026

• Data center leases start from fiscal 2027: Upcoming leases have terms up to twenty years and are expected to commence from the third quarter of fiscal 2027 through fiscal 2033. Source
• Fifteen-year leases commence 2028-2029: Leases of about fifteen years are expected to commence in fiscal 2028 and 2029, and management expects to reassign them to third parties. Source
• Option for 3.8 GW more credit support: The company has an option to provide credit support in phases for about 3.8 more gigawatts as the PORTS-Pike site scales. Source

Figures management reported

Risks management discussed

• Regulatory: The third-quarter revenue expectation excludes any Data Center compute revenue from China. Source
• Financial: Collection timing lengthened on certain large multi-quarter customer agreements, increasing the receivable balance. Source
• Financial: Total maximum gross guarantee exposure is $108.5 billion, and the exposure declines as OpenAI makes lease payments. Source
• External: Consumer PC sales slowed in Edge Computing, which management linked to elevated memory and systems prices. Source

Other quarters

• Q1 FY2027 earnings call
• Q4 FY2026 earnings call
• Q3 FY2026 earnings call
• Q2 FY2026 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.