NVIDIA reported income of $96.2 billion for the second quarter of fiscal 2027, ended July 26, 2026, up 18% from the earlier quarter and up 106% from a yr earlier, based on the corporate’s earnings launch printed August 26, 2026. GAAP and non-GAAP gross margins each got here in at 75.0%, and GAAP diluted earnings per share reached $2.46, up 128% yr over yr, on web revenue of $59.7 billion.
The Information Heart enterprise stays the engine, posting $89.0 billion in quarterly income, up 18% sequentially and up 117% from a yr in the past. The corporate’s different reporting section, Edge Computing, contributed $7.2 billion, up 13% from the earlier quarter and up 27% yr over yr.
“AI has reached its inflection level. It’s doing helpful work. Its tokens are productive and worthwhile. Now, compute is income,” mentioned Jensen Huang, founder and CEO of NVIDIA.
Huang framed the demand aspect as broadening past the handful of consumers that drove the primary wave of buildout, pointing to new AI labs and startups, a number of frontier labs scaling in parallel, an open-model ecosystem, and bodily AI programs coming on-line. He tied the second on to the corporate’s latest platform.
“The AI infrastructure buildout is at full steam. Vera Rubin, now in full manufacturing, was constructed to energy precisely this second,” Huang mentioned.
For the third quarter of fiscal 2027, NVIDIA guided income to $108.0 billion, plus or minus 2%, with GAAP and non-GAAP gross margins of 74.0%, plus or minus 50 foundation factors. The steering carries a big situation: the corporate will not be assuming any Information Heart compute income from China in its outlook. Working bills are anticipated to run roughly $9.2 billion on a GAAP foundation and $9.0 billion non-GAAP.
The quarter additionally produced $21.3 billion in free money move, and NVIDIA returned roughly $26.0 billion to shareholders by buybacks and dividends, leaving roughly $99.0 billion remaining below its repurchase authorization. The steadiness sheet expanded to $320.3 billion in whole property, and the cash-flow assertion reveals the corporate took in $24.9 billion from a debt issuance in the course of the quarter whereas deploying $42.4 billion into fairness securities over the primary half of the fiscal yr.
NVIDIA’s Quarter of Racks, Energy and Capital
The earnings cap 1 / 4 during which the corporate moved aggressively on each enter to the buildout: chips, financing, energy and land. On August 10, 2026, NVIDIA introduced strategic partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to determine unbiased compute financing platforms geared toward mobilizing over $500 billion of third-party capital for AI infrastructure, an effort Unite.AI lined as NVIDIA’s push to finance compute as an asset class. The partnerships relaxation on signed memorandums of understanding and stay topic to definitive agreements.
Every week later, on August 17, 2026, the corporate secured land, energy and shell capability on the PORTS-Pike Expertise Campus in Ohio by a partnership with SB Power to host NVIDIA compute, and on August 21, 2026, it took a minority stake in data-center developer Cloverleaf Infrastructure. On the demand aspect, SpaceXAI dedicated to deploying NVIDIA’s Vera CPUs for its subsequent technology of agentic AI purposes, whereas Lancium signed on to deploy gigawatt-scale AI factories with the corporate. Rounding out the quarter, NVIDIA mentioned Vera Rubin racks at the moment are working at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius, and its edge enterprise added the Jetson Orin Nano 2 robotics pc alongside an RTX Spark partnership with Microsoft for Home windows PCs.
NVIDIA’s Second Quarter by the Numbers
- Complete income: $96.2 billion, up 106% yr over yr
- Information Heart income: $89.0 billion, up 117% yr over yr
- Edge Computing income: $7.2 billion, up 27% yr over yr
- GAAP gross margin: 75.0%, up from 72.4% a yr in the past
- GAAP diluted EPS: $2.46, up 128%; non-GAAP diluted EPS: $2.22, up 120%
- Working revenue: $63.7 billion, up 124%
- Analysis and growth spending: $7.1 billion, up from $4.3 billion a yr in the past
- Free money move: $21.3 billion
- Shareholder returns: roughly $26.0 billion in buybacks and dividends
- Third-quarter outlook: $108.0 billion, plus or minus 2%
One methodology notice on the non-GAAP figures: starting with the primary quarter of fiscal 2027, NVIDIA’s non-GAAP measures now not exclude stock-based compensation, and the historic comparisons within the launch have been restated to match.
What Comes Subsequent for NVIDIA
NVIDIA can pay its subsequent quarterly money dividend of $0.25 per share on October 1, 2026, to shareholders of report on September 10, 2026. The corporate was set to debate the quarter on a convention name at 2 p.m. Pacific time on August 26, 2026, with a replay accessible by its third-quarter earnings name.
The ahead line to observe is the China assumption. Excluding Information Heart compute income from China fully, NVIDIA nonetheless expects $108.0 billion in third-quarter income, which might characterize 12% sequential progress and roughly 57% progress from the $68.9 billion implied year-ago quarter. The Vera Rubin ramp, now in full manufacturing, is the supply-side piece of that information.
How Groq 3 LPX Extends Vera Rubin’s Inference Attain
Essentially the most architecturally important product notice within the launch is that NVIDIA Groq 3 LPX, the corporate’s interactive AI inference accelerator, entered full manufacturing in the course of the quarter. Groq 3 LPX is an extension of the Vera Rubin platform geared toward a selected bottleneck in agentic AI: brokers generate huge volumes of tokens throughout a whole lot or hundreds of inference steps, so the speed of token technology for a person consumer determines how rapidly an agent completes every step of its work.
NVIDIA says Groq 3 LPX delivered a report 3,400 output tokens per second in Synthetic Evaluation benchmarking working the open-source Gemma 4 31B mannequin with a 100,000-token context, and 4x quicker responsiveness for latency-sensitive workloads than the closest various platform. The rack configurations pair the accelerator with NVIDIA BlueField-4 DPUs, Vera CPU racks, Vera BlueField-4 STX storage and Spectrum-6 SPX Ethernet. The corporate additionally mentioned Blackwell led throughout each class within the MLPerf Coaching 6.0 benchmarks and in AgentPerf, a brand new agentic AI infrastructure benchmark.
The branding carries its personal disclosure: the Groq 3 LPX launch notes that the Groq and LPU marks are used below license from Groq, Inc., and the earnings cash-flow assertion reveals a $2.9 billion cost to Groq, Inc. in the course of the quarter. Nebius is the primary AI cloud adopting Groq 3 LPX, bringing it to its Token Manufacturing unit inference platform, with purpose-built inference cloud Groq planning to be among the many earliest adopters to comply with.
