NVIDIA revenue hits $96.2B as AI demand doubles
NVIDIA reported fiscal second-quarter 2027 revenue of $96.2 billion on Aug. 26, beating analyst expectations as demand for artificial intelligence infrastructure continued expanding.
- NVIDIA reported Q2 revenue of $96.2 billion, rising 106% year over year and beating estimates.
- Data Center revenue reached $89.0 billion, increasing 117% as AI infrastructure demand accelerated globally worldwide.
- NVIDIA guided Q3 revenue to $108 billion, excluding Data Center compute sales from China entirely.
- Supply and capacity commitments jumped to $279 billion, primarily reflecting expanded procurement of memory components.
- Vera Rubin entered full production, while NVIDIA returned approximately $26 billion to shareholders during Q2.
Revenue for the quarter ended July 26 increased 18% from the preceding quarter and 106% from one year earlier, according to the company’s official release. Visible Alpha analysts had expected approximately $92.2 billion.
NVIDIA revenue beats estimates as Data Center sales surge
NVIDIA’s Data Center business generated $89 billion, rising 18% quarter over quarter and 117% year over year. The result also surpassed the Visible Alpha estimate of roughly $85.7 billion.
Non-GAAP diluted earnings reached $2.22 per share, compared with analyst expectations near $2.09. GAAP earnings were $2.46 per diluted share, while GAAP net income more than doubled to $59.7 billion.
NEWS: NVIDIA announces financial results for second quarter fiscal 2027.
— NVIDIA Newsroom (@nvidianewsroom) August 26, 2026
➡️ Revenue of $96.2 billion, up 106% from a year ago
➡️ Data Center revenue of $89.0 billion, up 117% from a year ago
Read more: https://t.co/fQUiuBUsOU
Both GAAP and non-GAAP gross margins were 75%. NVIDIA returned approximately $26 billion through share repurchases and dividends during the quarter. It retained about $99 billion under its share repurchase authorization.
The results arrive as Bitcoin mining companies increase spending on AI infrastructure. As previously reported, nine public miners spent $5.11 billion on capital assets during the first half of 2026 while recording $341.2 million in AI and high-performance computing revenue.
$108 billion NVIDIA outlook excludes China compute sales
NVIDIA projected fiscal Q3 revenue of $108 billion, plus or minus 2%. That forecast exceeded the approximately $104.2 billion consensus estimate cited before the results.
The company expects both GAAP and non-GAAP gross margins of 74%, plus or minus 50 basis points. Its outlook assumes no Data Center compute revenue from China, reflecting continuing restrictions and uncertainty surrounding sales of advanced AI processors.
NVIDIA shares initially fluctuated following the release as investors considered the lower margin forecast. The stock later rose approximately 4.1% in extended trading after the company’s earnings call.
“Customer forecasts point to NVIDIA’s growth doubling next year,” CFO Colette Kress said, but the company expects approximately 70% growth because available supply may not satisfy all forecast demand.
The 70% figure is management’s fiscal 2028 expectation, not a guaranteed result. Customer forecasts also represent demand indications rather than binding revenue commitments.
Supply commitments rise to $279 billion
NVIDIA’s supply and capacity commitments increased from $119 billion in the preceding quarter to $279 billion as of July 26. Its 10-Q filing attributed the increase mainly to memory and manufacturing capacity required for current and future products.
The commitments include $92 billion due during the remainder of fiscal 2027, $87 billion in fiscal 2028 and $88 billion in fiscal 2029. Some supplier agreements may be canceled, rescheduled or adjusted before firm orders are placed.
The filing also disclosed total future commitments of $366 billion across supply, cloud services, leases, equity investments and capital expenditure. The company had another $29 billion in cloud service agreements and $25 billion in data center leases that had not commenced.
Crypto-linked infrastructure providers are participating in this expansion. In related coverage, IREN signed a $3.4 billion NVIDIA contract covering managed GPU cloud services over five years.
Vera Rubin enters production as capacity expands
The firm said its Vera Rubin platform had entered full production, with systems running at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius.
Meanwhile, the company also announced partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR intended to mobilize more than $500 billion for AI infrastructure. The initiative remains subject to definitive agreements and therefore does not represent secured funding.
The company’s next financial test will be converting its expanded supply commitments into delivered systems while protecting margins from higher memory and manufacturing costs. Investors will also watch whether the company can meet its $108 billion Q3 forecast without Data Center compute revenue from China.