NVIDIA Posts Record $96.2B Quarter as Data Center Revenue Jumps 117%
Jensen Huang: “AI has reached its inflection point. It’s doing useful work.” Q3 guidance calls for $108 billion in revenue.
NVIDIA continues to redefine what a mega-cap earnings quarter looks like. Fiscal second-quarter 2027 revenue came in at $96.2 billion, up 106% year-over-year and 18% sequentially, comfortably ahead of where the stock has been pricing the AI buildout. Data center revenue — the number that matters most for the AI infrastructure story — hit $89.0 billion, up 117% year-over-year and 18% quarter-over-quarter.
Margins Holding Despite the Scale-Up
Gross margin held at 75.0% on both a GAAP and non-GAAP basis — a notable feat given the sheer scale of shipments and ongoing questions about supply-chain costs. GAAP diluted EPS came in at $2.46, with non-GAAP EPS at $2.22. NVIDIA also returned approximately $26.0 billion to shareholders through buybacks and dividends during the quarter, and still has $99.0 billion remaining under its repurchase authorization — a signal of confidence in free cash flow generation even at this scale.
Jensen Huang: “AI Has Reached Its Inflection Point”
CEO Jensen Huang used the earnings call to argue that AI has moved past the hype phase: “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable.” He also pushed back on concentration concerns that have worried investors, noting the demand base has broadened materially: “This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups.” Huang’s closing line for the quarter: “The AI infrastructure buildout is at full steam.”
That broadening demand base matters context for today’s market action — chip and AI infrastructure stocks rallied after Treasury Secretary Scott Bessent described “very successful” weekend trade talks with China, adding another tailwind ahead of Thursday’s Trump-Xi summit. We cover that move in today’s market wrap.
Guidance and What’s Next
NVIDIA guided Q3 FY2027 revenue to $108.0 billion (±2%), with gross margin projected at 74.0% (±50 basis points) — a slight sequential compression that management attributes to product mix rather than pricing pressure. Operating expenses are guided to roughly $9.2 billion on a GAAP basis. If achieved, $108 billion would mark another all-time high and keep NVIDIA on pace as the fastest company in history to compound revenue at this scale.
The one overhang worth watching: with the Fed signaling further rate hikes, the cost of the roughly $1.5 trillion in debt financing behind the broader AI data center buildout is rising — a risk factor for NVIDIA’s customer base even if NVIDIA’s own balance sheet remains pristine. We track this dynamic in our H2 2026 market outlook and in our companion coverage of Oracle (ORCL) and Broadcom (AVGO), two of the other names most exposed to AI capex cycles.
For the full financial snapshot, leadership team, and analyst price targets on NVDA, see our continuously updated NVIDIA stock fact sheet, part of our broader Stock Fact Sheets hub.
This article is for informational purposes only and does not constitute investment advice. Consult a financial advisor before making investment decisions.
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