Nvidia Q2 FY2027 Earnings: $96.2bn Revenue and a Rare 70% Growth Forecast

Nvidia reported second quarter fiscal 2027 revenue of $96.2bn on 26 August 2026, up 106% on a year earlier, then saw its stock reverse from a loss to a gain after chief financial officer Colette Kress told analysts the company expects revenue to grow around 70% in fiscal 2028. Analysts had been modelling roughly 44%.

Two things happened on the call that hadn't happened before. Nvidia issued its first ever full-year forecast, and the stock's reaction split cleanly in two: down as much as 3% on the print itself, up 4% to 5% by the time Kress finished speaking.

What Did Nvidia Report in Q2 FY2027?

Nvidia beat on every headline measure. Revenue for the three months to 26 July 2026 reached $96.2bn, up 106% year on year and 18% on the previous quarter, against an LSEG consensus of $92.17bn. Adjusted earnings came in at $2.22 per share versus $2.10 expected, with GAAP diluted earnings of $2.46.

GAAP net income was $59.7bn, a 126% increase from $26.4bn a year earlier. Gross margin was 75.0%.

The data centre division generated $89.0bn of the total, up 117% year on year and 18% sequentially. That single segment now accounts for roughly 93% of company revenue.

Key Facts About Nvidia's Q2 FY2027 Results

What Is Nvidia's Guidance for the Current Quarter?

Nvidia guided to $108.0bn in revenue for the third quarter of fiscal 2027, plus or minus 2%, ahead of the $104.2bn analysts had modelled. That would be the company's first quarter above $100bn.

Two details in the outlook matter. The guidance assumes no data centre compute revenue from China at all, so that is upside excluded rather than demand lost. And gross margin is guided to 74.0% plus or minus 50 basis points, a step down from the 75.0% just reported. Management expects the newly ramping Vera Rubin platform to account for around 20% of data centre revenue in the current quarter.

Why Did Nvidia Shares Reverse Higher After the Results?

The move came from the earnings call, not the earnings release. Shares fell as much as 3% in extended trading as investors focused on the margin trajectory rather than the beat, then turned higher to trade up around 4% to 5% once Kress delivered the fiscal 2028 forecast.

That sequence is the story. A beat on the quarter was not enough on its own. Sentiment turned only when the company extended its visibility by a full year, which suggests the market is now pricing the duration of AI demand rather than the size of any single quarter.

What Is Nvidia's Fiscal 2028 Revenue Forecast?

Nvidia expects revenue to grow by roughly 70% in fiscal 2028. Kress gave the figure on the call rather than in the printed release, against an analyst consensus near 44%.

The framing mattered as much as the number. Kress described 70% as a supply constraint rather than a demand ceiling, saying customer forecasts pointed to growth doubling next year. Jensen Huang was blunter: demand is much greater than 70%, but supply is what allows the company to commit to 70%. He described the entire supply chain as running flat out, with Nvidia working with suppliers to add capacity.

Why Does the Full-Year Forecast Matter?

Because Nvidia has never issued one before, and doing so changes what the company can be held to. Firms of this size almost never guide a year ahead, and putting a public number on fiscal 2028 is a costly way to signal confidence if that confidence turns out to be misplaced.

It also lands directly on the question that has hung over the AI trade all year: whether infrastructure spending is a durable build cycle or a spending peak already in progress. That question sharpened on 10 August, when Nvidia announced financing platforms with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR intended to mobilise more than $500bn of third-party capital for AI compute infrastructure. The arrangement drew scrutiny over whether Nvidia is helping underwrite its own demand.

CNBC noted the fiscal 2028 forecast would put Nvidia on track to become the second largest US technology company by revenue.

What Is Happening to Nvidia's Gross Margins?

Margins are the clearest near-term pressure point, and they are the reason the stock fell before it rose. Guidance of 74.0% for the current quarter sits below the 75.0% just reported, and management pointed to extreme pricing conditions in memory as the driver.

Management indicated margins trough in the fourth quarter before improving through fiscal 2028, helped in part by planned price increases. That makes the margin line, rather than the revenue line, the number most likely to move the stock over the next two quarters.

What Are the Risks to Nvidia's Outlook?

Supply is the most unusual one. The limit on fiscal 2028 growth is what Nvidia can build, not what customers will buy. That is a better problem than weak demand, but it is still a cap, and it depends on a memory supply chain the company does not control.

Reuters coverage noted that investor caution has not disappeared. Concerns include in-house silicon programmes at large customers such as Microsoft and Meta, rising competition in inference workloads from Intel, AMD and Chinese chipmakers, and Nvidia's expanding role in financing the AI buildout.

Leverage has moved too. Total debt stood at $33.4bn as of 26 July 2026, up from $8.5bn at 25 January 2026, reflecting the scale of the company's capital commitments. Nvidia ended the quarter with $99.0bn remaining under its share repurchase authorisation.

How Has Nvidia Stock Performed in 2026?

Nvidia had gained 12.4% year to date as of Wednesday's close, well behind AMD and Intel, which have both more than doubled over the same period.

That underperformance is part of why the after-hours reversal was as sharp as it was. Positioning going into the print was cautious relative to the fundamentals being reported.

What Should Traders Watch Next?

Margin direction is the first thing. If memory costs compress gross margin beyond the 74% guide, the revenue story and the earnings story begin to diverge, and Nvidia has historically been rewarded on both.

Sector read-across is the second. How semiconductor peers, memory suppliers and data centre infrastructure names trade in the sessions that follow will indicate whether Nvidia's guidance is being applied to the wider sector or treated as company specific.

Analyst revisions are the third. A 70% forecast against a 44% consensus forces the entire sell side to re-model fiscal 2028, and the resulting price target changes tend to arrive in a cluster within days.

On the demand side, Nvidia and AWS announced they will deliver 2 million additional GPUs across fiscal 2027 and 2028. Nvidia also confirmed its Vera Rubin platform is in full production, with racks running at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius.