NVIDIA CORP (NVDA): Results of Operations and Financial Condition
NVIDIA CORP (NVDA) filed an SEC Form 8-K — Results of Operations and Financial Condition. NVIDIA Announces Financial Results for Second Quarter Fiscal 2027 • Revenue of $96.2 billion, up 106% from a year ago • Data Center revenue of $89.0 billion, up 117% from a year ago SANTA CLARA, Calif.—Aug. 26, 2026― NVIDIA (NASDAQ: NVDA) today reported revenue for the second qua
How this was made
The 30-second read
Why it matters
The earnings beat and forward guidance reinforce NVIDIA's leadership in AI infrastructure, likely driving short‑term buying pressure.
Market read
NVIDIA's results set a benchmark for the AI sector, influencing related stocks and market sentiment.
What to watch
Excluding China data‑center revenue may limit upside; supply constraints could temper growth.
NVIDIA Announces Financial Results for Second Quarter Fiscal 2027
Revenue grew 18% sequentially and 106% year over year to $96.2 billion, led by Data Center revenue of $89.0 billion. GAAP operating income increased 19% sequentially and 124% year over year, while the company guided third-quarter revenue to $108.0 billion, plus or minus 2%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $96,221 million | 18% | 106% |
| Gross profitGAAP | $72,142 million | – | – |
| Gross marginGAAP | 75.0% | 0.1 pts | 2.6 pts |
| Cost of revenueGAAP | $24,079 million | – | – |
| Research and development expenseGAAP | $7,054 million | – | – |
| Sales, general and administrative expenseGAAP | $1,354 million | – | – |
| Operating expensesGAAP | $8,408 million | 10% | 55% |
| Operating incomeGAAP | $63,734 million | 19% | 124% |
| Other income, netGAAP | $7,773 million | – | – |
| Income before income taxGAAP | $71,507 million | – | – |
| Income tax expenseGAAP | $11,819 million | – | – |
| Net incomeGAAP | $59,688 million | 2% | 126% |
| Basic earnings per shareGAAP | $2.47 per share | – | – |
| Diluted earnings per shareGAAP | $2.46 per diluted share | 3% | 128% |
| Weighted average diluted sharesGAAP | 24,285 million | – | – |
| Non-GAAP gross profitnon-GAAP | $72,188 million | – | – |
| Non-GAAP gross marginnon-GAAP | 75.0% | — | 2.5 pts |
| Non-GAAP operating expensesnon-GAAP | $8,232 million | 11% | 54% |
| Non-GAAP operating incomenon-GAAP | $63,956 million | 19% | 124% |
| Non-GAAP other income, netnon-GAAP | $300 million | – | – |
| Non-GAAP net incomenon-GAAP | $53,954 million | 18% | 118% |
| Non-GAAP diluted earnings per sharenon-GAAP | $2.22 per diluted share | 19% | 120% |
| Net cash provided by operating activitiesGAAP | $24,077 million | – | – |
| Free cash flownon-GAAP | $21,341 million | – | – |
| Purchases related to property and equipment and intangible assetsother | $2,677 million | – | – |
| Principal payments on property and equipment and intangible assetsother | $59 million | – | – |
| Cash and cash equivalentsother | $22,443 million | – | – |
| Marketable debt securitiesother | $34,143 million | – | – |
| Marketable equity securitiesother | $42,783 million | – | – |
| Accounts receivable, netother | $63,059 million | – | – |
| Inventoriesother | $31,575 million | – | – |
| Short-term debtother | $1,000 million | – | – |
| Long-term debtother | $32,366 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Data CenterThe NVIDIA Vera Rubin platform is ramping into full production, with racks running at partners including CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius. | $89.0 billion | 18% | 117% |
| Edge ComputingHighlights included RTX Spark and DGX Station for Windows, local AI optimizations across RTX and DGX platforms, and expansions in robotics, autonomous vehicle and physical AI platforms. | $7.2 billion | 13% | 27% |
Third quarter fiscal 2027 outlook
- Revenue$108.0 billion, plus or minus 2%
- Gross marginGAAP and non-GAAP gross margins are expected to be 74.0%, plus or minus 50 basis points.
- Operating expensesGAAP operating expenses are expected to be approximately $9.2 billion and non-GAAP operating expenses are expected to be approximately $9.0 billion.
- Tax rateFor the full year fiscal 2027, GAAP and non-GAAP tax rates are expected to be between 16.0% and 18.0%, excluding any discrete items and material changes to NVIDIA’s tax environment.
- NoteNVIDIA is not assuming any Data Center compute revenue from China in its outlook.
Capital returns
- NVIDIA returned approximately $26.0 billion to shareholders during the second quarter of fiscal 2027 in the form of shares repurchased and cash dividends.
- Payments related to repurchases of common stock were $19,732 million during the three months ended July 26, 2026.
- Dividends paid were $6,047 million during the three months ended July 26, 2026.
- Approximately $99.0 billion remained under the share repurchase authorization at the end of the second quarter.
- NVIDIA will pay its next quarterly cash dividend of $0.25 per share on October 1, 2026, to shareholders of record on September 10, 2026.
What drove it
- Data Center revenue reached $89.0 billion, up 18% sequentially and 117% year over year.
- The Vera Rubin platform is ramping into full production.
- NVIDIA announced strategic partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to mobilize over $500 billion of third-party capital for AI infrastructure buildout over time, subject to definitive agreements.
- NVIDIA stated that Blackwell led across every category in the MLPerf Training 6.0 benchmarks and in AgentPerf.
- Edge Computing revenue rose 13% sequentially and 27% year over year, with product activity spanning Windows AI systems, robotics, autonomous vehicles and physical AI.
Concerns
- NVIDIA is not assuming any Data Center compute revenue from China in its third-quarter fiscal 2027 outlook.
- Third-quarter GAAP and non-GAAP gross margin guidance is 74.0%, plus or minus 50 basis points, compared with second-quarter GAAP and non-GAAP gross margins of 75.0%.
- Third-quarter GAAP operating expense guidance is approximately $9.2 billion and non-GAAP operating expense guidance is approximately $9.0 billion, compared with second-quarter GAAP operating expenses of $8,408 million and non-GAAP operating expenses of $8,232 million.
- Accounts receivable, net were $63,059 million and inventories were $31,575 million as of July 26, 2026, compared with $38,466 million and $21,403 million, respectively, as of January 25, 2026.
What to watch
- Execution of the Vera Rubin platform ramp into full production across announced cloud and infrastructure partners.
- Whether third-quarter revenue reaches the $108.0 billion, plus or minus 2%, outlook without assumed Data Center compute revenue from China.
- Third-quarter gross margin relative to the 74.0%, plus or minus 50 basis points, GAAP and non-GAAP outlook.
- Operating expense progression against guidance of approximately $9.2 billion GAAP and approximately $9.0 billion non-GAAP.
- Development of the announced independent compute financing platforms intended to mobilize over $500 billion of third-party capital over time, subject to definitive agreements.
- The evolution of accounts receivable, inventories, debt and operating cash flow.
Balance sheet and cash flow
- Cash and cash equivalents were $22,443 million as of July 26, 2026, compared with $10,605 million as of January 25, 2026.
- Marketable debt securities were $34,143 million and marketable equity securities were $42,783 million as of July 26, 2026.
- Accounts receivable, net were $63,059 million and inventories were $31,575 million as of July 26, 2026.
- Total assets were $320,272 million, total liabilities were $91,288 million and shareholders' equity was $228,984 million as of July 26, 2026.
- Short-term debt was $1,000 million and long-term debt was $32,366 million as of July 26, 2026.
- Net cash provided by operating activities was $24,077 million and free cash flow was $21,341 million for the three months ended July 26, 2026.
- Proceeds related to issuance of debt, net of costs, were $24,896 million during the three months ended July 26, 2026.
- Accounts receivable used $22,346 million of cash and inventories used $5,784 million of cash during the three months ended July 26, 2026.
Analysis
NVIDIA reported a sharply higher second quarter, with GAAP revenue of $96,221 million, up 18% from $81,615 million in the prior quarter and 106% from $46,743 million a year earlier. Data Center revenue was $89.0 billion, up 18% sequentially and 117% year over year, while Edge Computing revenue was $7.2 billion, up 13% sequentially and 27% year over year. The revenue profile remains dominated by Data Center, and the company tied that momentum to the Vera Rubin platform ramping into full production.
Profitability remained elevated. GAAP gross margin was 75.0%, versus 74.9% in the first quarter and 72.4% a year earlier. GAAP operating income rose 19% sequentially to $63,734 million, and GAAP net income was $59,688 million, up 2% sequentially. The difference between sequential operating-income growth and net-income growth reflected GAAP other income, net of $7,773 million in the quarter, versus $16,367 million in the prior quarter. Non-GAAP net income was $53,954 million and non-GAAP diluted EPS was $2.22, up 18% and 19% sequentially, respectively.
Cash generation was substantial, with GAAP net cash provided by operating activities of $24,077 million and free cash flow of $21,341 million. The cash flow statement also showed $22,346 million of cash used by accounts receivable and $5,784 million used by inventories. At July 26, 2026, accounts receivable were $63,059 million and inventories were $31,575 million, compared with $38,466 million and $21,403 million, respectively, at January 25, 2026. The company held $22,443 million of cash and cash equivalents, $34,143 million of marketable debt securities and $42,783 million of marketable equity securities, while long-term debt was $32,366 million.
Capital allocation included approximately $26.0 billion returned to shareholders through repurchases and cash dividends during the quarter. Detailed cash flows showed $19,732 million of share repurchases and $6,047 million of dividends paid. NVIDIA also reported approximately $99.0 billion remaining under its repurchase authorization. Financing activity included $24,896 million of proceeds related to issuance of debt, net of costs.
For the third quarter, NVIDIA expects revenue of $108.0 billion, plus or minus 2%, and explicitly does not assume any Data Center compute revenue from China. GAAP and non-GAAP gross margins are expected to be 74.0%, plus or minus 50 basis points, below the 75.0% reported in the second quarter. GAAP and non-GAAP operating expenses are expected to be approximately $9.2 billion and $9.0 billion. The full-year fiscal 2027 GAAP and non-GAAP tax-rate outlook is between 16.0% and 18.0%, excluding any discrete items and material changes to NVIDIA’s tax environment.
Management, verbatim
AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.
Jensen Huang, founder and CEO of NVIDIA
And demand is accelerating. This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the U.S. and around the world. The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment.
Jensen Huang, founder and CEO of NVIDIA
Not in the filing
stated, not guessed- Previous-quarter outlook was not provided, so comparisons of actual second-quarter fiscal 2027 results with prior guidance are unavailable.
- No reported GAAP effective tax rate for the second quarter fiscal 2027 was provided.
- No segment operating income or segment margin data were provided.
- No geographic revenue breakdown was provided.
- No direct CFO commentary text was included in the filing text. The filing states that commentary is available at NVIDIA's investor relations website.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
NVIDIA reported its Q2 FY27 earnings via an SEC Form 8‑K, highlighting record revenue and AI platform expansions.
Ticker impact
NVIDIA disclosed Q2 FY27 results with $96.2B revenue and issued guidance for Q3 FY27 revenue of $108.0B.
Potential upside as investors price in higher revenue growth and robust margins.
The earnings beat and forward guidance are primary, material, and unprecedented, providing a clear catalyst for short‑term buying.
Market effects
AI and data‑center hardware sector likely to rally on NVIDIA's strong performance.
U.S. tech equities may see broad gains; global AI supply chains could benefit.
NVIDIA's results influence worldwide AI infrastructure investments.
Counterpoint
If AI demand softens or macro pressures rise, the stock could face a pullback despite the beat.
Key entities
- CompanyNVIDIA
AI hardware and platform provider
