NVIDIA — Second Quarter Fiscal 2027 Earnings Summary

Financial Performance

• Revenue was $96.2 billion, an 18% increase from the previous quarter and a 106% increase year-over-year.
• Data Center revenue was $89.0 billion, up 18% sequentially and 117% year-over-year.
• Edge Computing revenue was $7.2 billion, up 13% sequentially and 27% year-over-year.
• GAAP and non-GAAP gross margins were both 75.0% for the quarter, compared to 74.9% and 75.0% respectively in Q1 FY27 and 72.4% and 72.5% in Q2 FY26.
• GAAP operating expenses were $8.4 billion (up 10% Q/Q, 55% Y/Y); non-GAAP operating expenses were $8.2 billion (up 11% Q/Q, 54% Y/Y).
• GAAP net income was $59.7 billion; non-GAAP net income was $54.0 billion.
• GAAP diluted earnings per share (EPS) were $2.46; non-GAAP diluted EPS were $2.22.
• Net cash provided by operating activities was $24.1 billion; free cash flow was $21.3 billion.
• Total assets were $320.3 billion as of July 26, 2026, compared to $206.8 billion as of January 25, 2026.
• Total liabilities were $91.3 billion; shareholders' equity was $229.0 billion.
• Cash and cash equivalents were $22.4 billion; marketable debt securities were $34.1 billion; marketable equity securities were $42.8 billion.
• Accounts receivable, net, were $63.1 billion; inventories were $31.6 billion.
• Short-term debt was $1.0 billion; long-term debt was $32.4 billion.

Guidance and Future Outlook

• Q3 FY27 revenue is expected to be $108.0 billion, plus or minus 2%.
• Q3 FY27 GAAP and non-GAAP gross margins are expected to be 74.0%, plus or minus 50 basis points.
• Q3 FY27 GAAP operating expenses are expected to be approximately $9.2 billion; non-GAAP operating expenses are expected to be approximately $9.0 billion.
• NVIDIA is not assuming any Data Center compute revenue from China in its Q3 outlook.
• For full-year FY27, GAAP and non-GAAP tax rates are expected to be between 16.0% and 18.0%, excluding discrete items and material changes to the tax environment.

Business Segments and Product Lines

• The NVIDIA Vera Rubin platform is ramping into full production with partners including CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure, and Nebius.
• NVIDIA Spectrum™-6 switch systems are arriving globally as part of the Vera Rubin platform.
• NVIDIA Vera, the first CPU built for AI agents, was unveiled with broad adoption planned across leading technology providers.
• NVIDIA Groq 3 LPX, an interactive AI inference accelerator, is now in full production.
• New security innovations were introduced for NVIDIA Vera BlueField™-4 STX.
• The NVIDIA DSX™ platform was launched to assist infrastructure builders in designing and operating AI factories.
• Strategic partnerships were announced with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to establish independent compute financing platforms for over $500 billion of third-party capital.
• SpaceXAI will deploy NVIDIA Vera CPUs for next-generation agentic AI applications.
• A partnership with SB Energy secures land, power, and shell capacity at the PORTS-Pike Technology Campus in Ohio.
• NVIDIA GPUs with Confidential Computing are used for confidential inference in Apple's Private Cloud Compute.
• The Edge Computing segment announced a partnership with Microsoft to reinvent the Windows PC with NVIDIA RTX Spark™.
• NVIDIA DGX Station™ for Windows was announced as a deskside AI supercomputer.
• The NVIDIA DRIVE Hyperion™ robotaxi-ready platform ecosystem was expanded with collaborations from Foxconn, VinFast, Uber, and HUMAIN.
• NVIDIA Alpamayo 2 Super, a frontier open reasoning model, was introduced for commercial use.
• NVIDIA Cosmos™ 3, the world's first fully open frontier omnimodel for physical AI, was launched.
• The NVIDIA Isaac™ GR00T Reference Humanoid Robot was announced, built on NVIDIA Jetson Thor™.
• NVIDIA Halos for Robotics, a full-stack safety system for physical AI, was announced.
• The NVIDIA BioNeMo™ Agent Toolkit was launched for the life sciences sector.
• The Open Secure AI Alliance was formed with industry leaders to advance AI safety and security.
• A multiyear technology partnership with SK hynix was announced to advance next-generation memory.
• A national AI infrastructure initiative was launched in Japan with the government and industrial leaders.
• Record 35 new NVIDIA AI HPC supercomputers were announced in development across Europe.

Market and Competitive Landscape

• Management stated AI has reached its inflection point with tokens becoming productive and profitable.
• Demand is accelerating with a "golden age" of new AI labs, startups, and multiple frontier labs scaling in parallel.
• NVIDIA Blackwell led across every category in the MLPerf Training 6.0 benchmarks and in AgentPerf.
• Sovereign AI infrastructure is being built at gigawatt scale in Korea through partnerships with SK Telecom, NAVER, and Brookfield.
• NVIDIA is building industry-specialized AI models in Japan using Nemotron™ open models.

Risks and Challenges

• Forward-looking statements are subject to risks including global economic and political conditions.
• Risks include reliance on third parties for manufacturing, assembly, packaging, and testing.
• Potential impacts from technological development, competition, and new product introductions.
• Risks related to market acceptance, design defects, and changes in consumer preferences or industry standards.
• Uncertainties regarding supply and demand for products, inventory, production, and distribution.
• Potential changes in applicable laws and regulations.

Management Commentary and Tone

• Jensen Huang, Founder and CEO, stated, "AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue."
• Huang described the current environment as a "golden age of new AI labs and startups" with strong momentum across the U.S. and globally.
• The tone indicates high confidence in the AI infrastructure buildout being at "full steam."

Other Key Points

• NVIDIA returned approximately $26.0 billion to shareholders in Q2 FY27 through share repurchases and cash dividends.
• Approximately $99.0 billion remained under the share repurchase authorization as of the end of Q2 FY27.
• A quarterly cash dividend of $0.25 per share will be paid on October 1, 2026, to shareholders of record on September 10, 2026.
• Stock-based compensation expense is included in non-GAAP financial measures beginning in Q1 FY27.
• Free cash flow is calculated as GAAP net cash provided by operating activities less purchases related to property and equipment and intangible assets and principal payments on such assets.
• The company filed reports with the SEC, including Form 10-K and Form 10-Q.