#NVIDIAEarnings NVIDIA Earnings Q2 Fiscal 2027 Deep Dive

Reported August 27 2026

NVIDIA just reported the largest quarter in company history and it was not even close. Revenue doubled year over year, margins expanded, and guidance came in well above consensus. The AI infrastructure cycle is accelerating, not slowing. This is the full professional breakdown of the numbers, the drivers, the outlook, and what it means for the broader market.

Headline Results

Fiscal Q2 2027 ended July 26 2026

Revenue 96.22 billion dollars

Up 106 percent year over year

Up 18 percent quarter over quarter

Beat consensus by 4.82 percent

Non GAAP EPS 2.22 dollars

Up 120 percent year over year

Beat consensus by 6.22 percent

GAAP Net Income 59.69 billion dollars

Up 126 percent year over year

Net margin 62 percent

GAAP Gross Margin 75.0 percent

Up 2.6 percentage points year over year

Up 2.7 percentage points quarter over quarter

Non GAAP Gross Margin 75.2 percent

For comparison, Q2 FY26 a year ago was 46.74 billion in revenue and 1.05 dollars EPS. The business has roughly doubled in 12 months at a scale of nearly 100 billion per quarter. That kind of growth at this size is unprecedented in semiconductors.

Segment Results

Data Center 89.02 billion dollars

92 percent of total revenue

Up 117 percent year over year

Up 18 percent quarter over quarter

Inside Data Center

Hyperscale customers 48.71 billion dollars

Up 102 percent year over year

Up 13 percent quarter over quarter

These are the big cloud providers building AI factories.

AI Clouds, Industrial, and Enterprise 40.31 billion dollars

Up 138 percent year over year

Up 25 percent quarter over quarter

This is the fastest growing piece. It includes sovereign AI projects, enterprise deployments, and specialized cloud providers.

The driver is Blackwell Ultra in full production. Vera Rubin has started shipping and management said it will be 20 percent of Data Center revenue next quarter. Demand is coming from three places. Training large models, running inference for consumer and business apps, and new AI agents that operate 24 hours per day.

China Data Center revenue was less than 1 percent of the segment. Export controls remain in place and the company is not assuming any recovery in the guide.

Gaming 4.3 billion dollars

Up 12 percent year over year

The new GPU cycle is helping. Desktop and laptop GPUs saw steady demand.

Professional Visualization 1.6 billion dollars

Up 9 percent year over year

Driven by AI design tools, simulation, and digital twins.

Automotive 540 million dollars

Up 22 percent year over year

Growth from self driving and in vehicle AI compute.

OEM and Other 780 million dollars

Up 15 percent year over year

The story remains Data Center. The other segments are profitable and growing but Data Center is the engine.

Profitability and Operating Metrics

GAAP Gross Margin 75.0 percent

Non GAAP Gross Margin 75.2 percent

The expansion came from mix shift to Blackwell Ultra which has higher average selling prices, better factory utilization, and a growing software and services attach.

Operating Expenses

GAAP Opex 6.1 billion dollars

Non GAAP Opex 4.3 billion dollars

Up about 35 percent year over year. Hiring in research and sales but revenue is growing much faster.

Operating Income

GAAP 66.1 billion dollars

Non GAAP 67.6 billion dollars

Operating margin 70 percent. This is elite level profitability for a hardware company.

Cash Flow and Capital Returns

Operating cash flow 48.2 billion dollars

Free cash flow 45.1 billion dollars

Cash and marketable securities 52.4 billion dollars

Total debt 12.8 billion dollars

The balance sheet is extremely strong.

Capital returned to shareholders 26.0 billion dollars this quarter

22.5 billion in share buybacks

3.5 billion in dividends

Board declared a 0.25 dollar per share dividend payable October 1

99.0 billion dollars remaining on the buyback authorization

Returning 26 billion in one quarter signals confidence that demand is durable.

Guidance Q3 Fiscal 2027

Revenue 108.0 billion dollars plus or minus 2 percent

That implies 12 percent sequential growth

Gross margin 75.3 percent plus or minus 50 basis points

Operating expenses GAAP 5.9 billion, Non GAAP 4.2 billion

Other income 500 million

Tax rate 16.5 percent plus or minus 1 percent

Key assumptions

No China Data Center revenue included

Vera Rubin to be 20 percent of Data Center revenue

Supply remains the limiting factor

Consensus was at 102 billion. The guide is 6 billion above. That beat is why the stock moved after hours.

Management Commentary

Jensen Huang: "AI has reached its inflection point. It is doing useful work. Its tokens are productive and profitable."

"The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment."

"Blackwell is the AI platform the world has been waiting for, delivering an exceptional generational leap."

The message is clear. Customers are past the testing phase. They are deploying AI and generating revenue from it. That is why orders keep increasing.

Demand Drivers In Detail

Hyperscale Buildout

The four largest cloud providers are each building gigawatt scale AI factories. They need Blackwell Ultra for training and inference. Capex guidance for 2026 across these four is 200 billion dollars.

Sovereign AI

Countries are building their own AI infrastructure for security and economic reasons. This was 8 billion dollars of revenue this quarter and is growing quickly.

Enterprise AI

Banks, healthcare providers, manufacturers, and retailers are deploying AI for customer service, research, code generation, and automation. This segment grew 138 percent.

AI Agents

New software that runs continuously and uses inference around the clock. This doubles chip utilization versus old batch models and creates more recurring demand.

Supply and Capacity

Management said partner clouds are expected to exit 2026 with 8 gigawatts of installed AI compute versus 3 gigawatts at the end of 2025. That is more than double in one year.

The bottlenecks remain power, cooling, and advanced packaging. NVIDIA is working with suppliers to expand capacity but demand is ahead of supply for at least the next two quarters.

On China

Less than 1 percent of Data Center revenue came from China. The company is complying with all export rules. The guide assumes zero contribution. This has been the case for four quarters and is fully priced in.

Valuation and Market Context

At a 96.22 billion dollar quarterly run rate, annualized revenue is 384.9 billion dollars. With a 70 percent operating margin, earnings power is substantial.

This is the fourth straight quarter of beating EPS estimates. The average beat over the last year is 5.82 percent.

The key for investors is durability. If revenue grows 50 percent next year from this base, earnings will follow. The market is paying for growth and margin expansion.

Risks To Monitor

Supply constraints. If power and packaging do not scale, growth could moderate.

Competition. Other chip firms are trying to catch up but are behind on software ecosystem.

Policy. Export rules could change but current policy is already reflected.

Customer concentration. Top 4 customers are 48 percent of Data Center revenue.

None of these are new but they remain important to watch.

Impact On The Broader Ecosystem

When NVIDIA grows 106 percent it means AI spending is growing 106 percent.

Beneficiaries

Cloud providers. They are the customers.

Server and equipment makers. More chips means more systems.

Power and cooling companies. 8 gigawatts requires massive electricity and liquid cooling.

Software companies. More compute enables more AI applications.

The cycle is moving from training to inference to agents. Each step uses more compute and favors NVIDIA's platform.

Analyst Takeaways

Bull case. Demand is still ahead of supply. Vera Rubin ramps next quarter. Margins expand. The 108 billion guide is conservative.

Base case. Growth moderates to 60 to 80 percent next year but remains very high. Margins stay in the mid 70s.

Bear case. A macro slowdown causes customers to pause. With current backlogs that is a 2027 issue, not 2026.

My read. This is a beat and raise quarter with high quality. The business is larger, more profitable, and has more visibility than 12 months ago.

Key Metrics Summary

Revenue 96.22 billion plus 106 percent YoY

Data Center 89.02 billion plus 117 percent YoY

Gross Margin 75.0 percent

Operating Margin 70 percent

EPS 2.22 dollars plus 120 percent YoY

Free Cash Flow 45.1 billion

Q3 Guide 108.0 billion

Dividend 0.25 dollars

The Bigger Picture

We are three years into the AI boom. Year one was experimentation. Year two was training. Year three is deployment and inference. Year four will be agents and physical AI.

NVIDIA sits at the center with chips, systems, and software. That integrated approach is why they can grow this fast and stay this profitable.

Final Thoughts

This was not just a good quarter. It was a statement. Revenue doubled. Margins expanded. Guidance beat by 6 billion. Management sounded confident that demand exceeds supply.

The stock will be volatile because expectations are high. But the fundamentals are very strong.

For long term investors the thesis is unchanged. AI compute demand is growing exponentially and NVIDIA is the primary beneficiary.

For traders the key levels are the 108 billion guide and the Vera Rubin ramp. If those hit, the next stop is 120 billion per quarter in Q4.

All figures are from NVIDIA Q2 FY27 results reported August 27 2026. Prices and estimates change. This is analysis and not financial advice. Please do your own research.$NVDA