Latest quarter

NVIDIA reported Q2 FY2027 revenue of $96.2 billion, compared with the consensus of $91.8 billion, while adjusted EPS as counted by the consensus was $2.22 versus $2.09. The company reported revenue growth of 105.9% from Q2 FY2026 and diluted EPS growth of 127.8% to $2.46.

The filing said Data Center revenue reached $89.0 billion, up 117% from a year earlier, driven by the ramp of Blackwell Ultra infrastructure. NVIDIA reported Edge Computing revenue of $7.2 billion, up 27%, with Blackwell workstation sales partly offset by slower consumer-PC sales. The filing reported gross margin of 75.0%, versus 72.4% a year earlier, and operating margin of 66.2%, versus 60.8%. NVIDIA reported free cash flow of $21.4 billion, compared with $13.5 billion a year earlier. The company reported Q2 revenue above its $91.0 billion, plus or minus 2%, guidance, while GAAP gross margin of 75.0% was within its 74.9%, plus or minus 50 basis points, guidance.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

Revenue came in within or above the company’s guide in 7 of the last 7 quarters it guided.

What management said on the call

Colette Kress said Q2 Data Center revenue rose 18% sequentially to $89 billion, with contributions from hyperscale customers and the ACINE business, which includes neocloud, industrial and enterprise customers. She said NVIDIA Compute was fully utilized across the clouds it serves and that customer forecasts pointed to growth doubling in the following year, while NVIDIA expected approximately 70% revenue growth because supply constrained its outlook.

Kress said the company had commenced production shipments of Vera Rubin and expected the architecture to account for about 20% of Data Center revenue in Q3. She said sequential growth in Q3 would be driven primarily by ACINE, while hyperscale growth was expected to reaccelerate in Q4 and fiscal 2028 as Vera Rubin supply increased. Kress also said NVIDIA expected CPU revenue to more than double in fiscal 2028, based on customer demand and an improving supply outlook.

On supply and investment, Kress said NVIDIA had increased supply and capacity commitments to $279 billion as of July 26, 2026, and described the commitments as necessary for the Vera Rubin ramp. She said NVIDIA introduced a revenue-sharing structure for neocloud facilities: the company provides take-or-pay commitments on part of capacity and shares in revenue above a minimum floor. Kress said NVIDIA had invested nearly $50 billion in Frontier AI Labs and had partnerships with infrastructure-capital providers intended to raise over $500 billion of third-party capital.

In response to questions about the scale of demand and supply, Jen-Hsun Huang said the unconstrained opportunity would be higher and described the entire supply chain as challenged. Huang said the company had secured supply for about 70% of its demand outlook and was working with suppliers to add capacity. He characterized NVIDIA’s offering as a full AI-factory platform spanning the AI lifecycle, rather than an inference-specific chip for one cloud or service.

Kress said rising memory prices had exceeded NVIDIA’s previous expectations and were expected to rise further into the next year. She said these conditions caused the company to reset its gross-margin expectations, with margins expected to bottom in Q4. Kress also said NVIDIA’s forward outlook included no China Data Center compute revenue because of geopolitical uncertainty.

Guidance

NVIDIA now expects Q3 FY2027 revenue of $108.0 billion, plus or minus 2%, versus its previous Q2 FY2027 guide of $91.0 billion, plus or minus 2%. The company expects Q3 GAAP and non-GAAP gross margins of 74.0%, plus or minus 50 basis points, and GAAP and non-GAAP operating expenses of approximately $9.2 billion and $9.0 billion, respectively. NVIDIA now expects FY2027 operating expenses to grow in the low 50s, versus its prior expectation for growth in the upper forties. Kress said Q4 GAAP and non-GAAP gross margins are expected to bottom in the 71.0% to 72.0% range, and NVIDIA’s preliminary expectation is for FY2028 revenue growth of approximately 70.0%.

How analysts reacted

Analysts’ price targets: $180.00 to $710.29, $320.00 on average (as of 18 October 2026).

Rating and price-target actions since the results on 26 August 2026: