NVIDIA (NVDA) Q2 2027 earnings summary

Executive summary

• Q2 FY27 revenue reached a record $96.2B, up 106% year-over-year and 18% sequentially, driven by Data Center and Compute & Networking growth.

• GAAP net income rose 126% to $59.7B; diluted EPS was $2.46, up 128% year-over-year.

• Data Center revenue reached $89.0B, up 117% year-over-year and 18% sequentially, as Blackwell Ultra infrastructure ramped.

• Vera Rubin production shipments began, with CPU, LPX, and STX among new growth drivers.

• Supply and capacity commitments increased to $279B to meet future demand.

Financial highlights

• Revenue rose to $96.2B from $46.7B in Q2 FY26; GAAP operating income increased 124% to $63.7B.

• GAAP and non-GAAP gross margins were both 75.0%; GAAP margin increased 2.6 points year-over-year.

• Free cash flow was $21.3B; cash, cash equivalents, and marketable debt securities totaled $56.6B at quarter-end.

• Operating expenses were $8.4B GAAP and $8.2B non-GAAP, up 55% and 54% year-over-year, respectively.

• Net gains from equity securities were $7.8B in Q2.

Outlook and guidance

• Q3 FY27 revenue is forecast at $108.0B, plus or minus 2%; no Data Center compute revenue from China is assumed.

• Q3 GAAP and non-GAAP gross margins are expected at 74.0%, plus or minus 50 bps; operating expenses are forecast at $9.2B GAAP and $9.0B non-GAAP.

• FY27 tax rates are expected at 16%-18%, excluding discrete items and material tax changes.

• FY2028 revenue growth is preliminarily expected at ~70%, with supply constraints expected to persist at least through FY2028.

• Memory prices are expected to rise further into next year, pressuring gross margins; Q4 margins are forecast at 71%-72%.