Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
NVIDIA's second quarter of fiscal year 2027 was defined by continued data center momentum and the Blackwell Ultra ramp. Management attributed the growth to data center products for accelerated computing and AI solutions, with Blackwell systems accounting for the majority of shipments. Revenue reached $96.2 billion, up 106% year over year, and gross margin expanded 2.6 percentage points. The main tension is execution risk: supply constraints, a surge in long-term supply commitments, and China export restrictions could pressure margins or timing.
Revenue
$96.22B
+105.85% YoY
EPS (Diluted)
$2.46
+127.78% YoY
Gross Margin
75.0%
+2.6 pts YoY
Operating Income
$63.73B
+124.10% YoY
Source: SEC XBRL
Nvidia (NVDA) reported Q2 FY2027 revenue of $96.22B, up 105.9% year over year. Operating margin was 66.2%, up 5.4 points from 60.8% a year earlier. NVDA's fiscal Q2 FY2027 corresponds to calendar Q3 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.87 | 1.79 | Beat +4.3% |
| Mar 2026 | 1.62 | 1.56 | Beat +3.6% |
| Dec 2025 | 1.30 | 1.27 | Beat +2.0% |
| Sep 2025 | 1.05 | 1.03 | Beat +2.1% |
2 reported segments · SEC XBRL
Segment revenue totals $96.22B, which is the $96.22B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure NVDA itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Data Center revenue grew 117% year over year, with Hyperscale revenue more than doubling and AI Clouds, Industrial & Enterprise revenue up 138%. Management attributed the growth to the ramp of Blackwell Ultra infrastructure.
Source: 10-Q Item 2 MD&A
NVIDIA increased its supply and capacity commitments from $119 billion last quarter to $279 billion as of July 26, 2026 to meet future demand, with continued expansion of the supplier base.
Source: 10-Q Item 2 MD&A
In August 2026, NVIDIA entered into guarantees with SB Energy to support the PORTS Technology Campus in Ohio covering about 4.25 gigawatts, with obligations capped at $105 billion and 20-year leases to OpenAI.
Source: 10-Q Item 2 MD&A
NVIDIA introduced a new business model with select AI cloud partners, with commitments totaling $36 billion as of July 26, 2026, enabling broader access to data center infrastructure for AI startups, enterprises, and sovereign customers.
Source: 10-Q Item 2 MD&A
During the first half of fiscal year 2027, NVIDIA incurred a $0.4 billion charge associated with H200 excess inventory and purchase obligations. Licensed H200 shipments to China accounted for less than 1% of Data Center revenue in the most recent quarter.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 2 high, 3 medium, 0 low
NVIDIA has significantly increased supply and capacity commitments to $279 billion and entered into guarantees, including up to $105 billion for SB Energy's Ohio data center campus. These multi-year arrangements could expose the company to financial, counterparty, and execution risks if demand weakens or partners fail to perform.
Source: 10-Q Item 1A Risk Factors
U.S. export controls and PRC restrictions have effectively foreclosed NVIDIA from competing in China's data center compute market. Licensing programs for H200 products remain limited, with shipments less than 1% of Data Center revenue, and further restrictions could harm competitive position and revenue.
Source: 10-Q Item 1A Risk Factors
NVIDIA faces broad information requests and inquiries from competition regulators in the EU, U.S., U.K., China, South Korea, and France. The French Competition Authority is examining whether gaming and data center GPUs are separate product categories, which could affect export controls and sales.
Source: 10-Q Item 1A Risk Factors
Open-source foundation models are increasingly popular, but if they are primarily deployed on competitors' platforms, demand for NVIDIA's offerings could decline. Regulatory restrictions on supporting third-party models, including those originating in China, could also materially impact the business.
Source: 10-Q Item 1A Risk Factors
The EU AI Act and new U.S. state laws, including those effective January 1, 2026, may impact NVIDIA's ability to train, deploy, or release AI models and systems. These regulations could increase compliance costs, delay deployments, and reduce demand for AI infrastructure.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 96.22 $B | 46.74 $B | +105.85% |
Cost of Revenue $B | 24.08 $B | 12.89 $B | +86.80% |
Gross Profit $B | 72.14 $B | 33.85 $B | +113.10% |
Operating Income $B | 63.73 $B | 28.44 $B | +124.10% |
Net Income $B | 59.69 $B | 26.42 $B | +125.90% |
EPS (Basic) $ | 2.47 $ | 1.08 $ | +128.70% |
EPS (Diluted) $ | 2.46 $ | 1.08 $ | +127.78% |
R&D Expense $B | 7.05 $B | 4.29 $B | +64.39% |
SG&A Expense $B | 1.35 $B | 1.12 $B | +20.68% |
Answers draw on this SEC filing and the data on this page
NVIDIA delivered exceptional Q1 FY2027 operating growth, with revenue up 85% year over year to $81.6B and operating income up 147% to $53.5B, while net income was further boosted by $15.9B of other income, primarily unrealized investment gains. Source: 10-Q Item 2 MD&A, pp.24, 27.
NVIDIA delivered exceptional FY2026 results with revenue surging 65.5% YoY to $215.9B and net income jumping 64.7% to $120.1B, driven by explosive demand for AI computing infrastructure.
NVIDIA reported a significant 62.5% year-over-year revenue increase in Q3 FY2026, driven by strong demand and operational efficiency, despite slight margin compression.
In Q2 FY2026, NVIDIA generated $46.74B in revenue (up 55.6% YoY) and $26.42B in net income, driven by robust data center demand for its Blackwell AI platform despite gross margin compression to 72.4% caused by product mix shifts and export control challenges.
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