NVIDIA (NASDAQ: NVDA) today reported revenue for the second quarter ended July 26, 2026, of $96.2 billion, up 18% from the previous quarter and up 106% from a year ago. For the quarter, GAAP and non-GAAP gross margins were both 75.0%. GAAP and non-GAAP earnings per diluted share were $2.46 and $2.22, respectively.
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” said 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.”
During the second quarter of fiscal 2027, NVIDIA returned approximately $26.0 billion to shareholders in the form of shares repurchased and cash dividends. As of the end of the second quarter, the company had approximately $99.0 billion remaining under its share repurchase authorization.
NVIDIA will pay its next quarterly cash dividend of $0.25 per share on October 1, 2026, to all shareholders of record on September 10, 2026.
Q2 Fiscal 2027 Summary
GAAP
($ in millions, except earnings per share)
Q2 FY27
Q1 FY27
Q2 FY26
Q/Q
Y/Y
Revenue
$96,221
$81,615
$46,743
18 %
106 %
Gross margin
75.0 %
74.9 %
72.4 %
0.1 pts
2.6 pts
Operating expenses
$8,408
$7,621
$5,413
10 %
55 %
Operating income
$63,734
$53,536
$28,440
19 %
124 %
Net income
$59,688
$58,321
$26,422
2 %
126 %
Diluted earnings per share
$2.46
$2.39
$1.08
3 %
128 %
Non-GAAP
($ in millions, except earnings per share)
Q2 FY27
Q1 FY27
Q2 FY26
Q/Q
Y/Y
Revenue
$96,221
$81,615
$46,743
18 %
106 %
Gross margin
75.0 %
75.0 %
72.5 %
–
2.5 pts
Operating expenses
$8,232
$7,449
$5,361
11 %
54 %
Operating income
$63,956
$53,783
$28,541
19 %
124 %
Net income
$53,954
$45,548
$24,763
18 %
118 %
Diluted earnings per share
$2.22
$1.87
$1.01
19 %
120 %
Outlook
NVIDIA’s outlook for the third quarter of fiscal 2027 is as follows:
Revenue is expected to be $108.0 billion, plus or minus 2%. NVIDIA is not assuming any Data Center compute revenue from China in its outlook.
GAAP and non-GAAP gross margins are expected to be 74.0%, plus or minus 50 basis points.
GAAP and non-GAAP operating expenses are expected to be approximately $9.2 billion and $9.0 billion, respectively.
For the full year fiscal 2027, NVIDIA expects GAAP and non-GAAP tax rates to be between 16.0% and 18.0%, excluding any discrete items and material changes to NVIDIA’s tax environment.
Highlights
Data Center
Second-quarter revenue was $89.0 billion, up 18% from the previous quarter and up 117% from a year ago.
Announced the 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.
Revealed that NVIDIA Spectrum™-6 switch systems — supporting both pluggable and co-packaged optics as part of the NVIDIA Vera Rubin platform — are arriving across the world’s gigascale AI factories.
Unveiled NVIDIA Vera, the first CPU built for AI agents, with broad adoption planned across the world’s leading technology providers.
Announced that NVIDIA Groq 3 LPX, the interactive AI inference accelerator, is now in full production.
Introduced new security innovations for NVIDIA Vera BlueField™-4 STX, delivering agentic AI storage processing with in-silicon security for AI factories.
Launched the NVIDIA DSX™ platform, providing infrastructure builders a complete playbook to design, build and operate AI factories at scale.
Announced strategic partnerships to establish independent compute financing platforms with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to mobilize over $500 billion of third-party capital for the buildout of AI infrastructure over time, subject to definitive agreements.
Announced that SpaceXAI will deploy NVIDIA Vera CPUs to accelerate its next generation of agentic AI applications.
Secured land, power and shell capacity through a partnership with SB Energy at the PORTS-Pike Technology Campus in Ohio to host NVIDIA compute.
Revealed that NVIDIA Blackwell led across every category in the MLPerf Training 6.0 benchmarks and in AgentPerf, the industry’s first agentic AI infrastructure benchmark.
Announced new software, open source models and partnerships with the world’s leading software platform providers to build autonomous AI agents for industries and enterprises; expanded NVIDIA Agent Toolkit with NVIDIA PhysicsNeMo and new and updated NVIDIA CUDA-X™ libraries.
Launched NVIDIA BioNeMo™ Agent Toolkit, which provides domain-specific tools and skills for the agentic life sciences era.
Formed the Open Secure AI Alliance with industry leaders to advance AI safety and security.
Revealed that NVIDIA GPUs with Confidential Computing are now used for confidential inference in Apple’s Private Cloud Compute.
Expanded Korea’s AI factory ecosystem through strategic partnerships with SK Telecom, NAVER and Brookfield to build sovereign AI infrastructure at gigawatt scale on the NVIDIA DSX platform, as part of a broader NVIDIA-powered national AI push across Korea’s industries and research institutions.
Announced a multiyear technology partnership with SK hynix to advance next-generation memory for the global AI factory buildout.
Partnered with the Japan government and industrial leaders to launch the world’s first national AI infrastructure; revealed that Japan’s leading enterprises, startups and research institutions are building industry-specialized AI models with NVIDIA Nemotron™ open models.
Announced that the NVIDIA Vera Rubin platform delivers world-class supercomputers for science; announced a record 35 new NVIDIA AI HPC supercomputers in development across Europe.
Edge Computing
Second-quarter Edge Computing revenue was $7.2 billion, up 13% from the previous quarter and up 27% from a year ago.
Partnered with Microsoft to reinvent the Windows PC with NVIDIA RTX Spark™ — a 1-petaflop superchip with the full CUDA™ and NVIDIA RTX™ ecosystem.
Announced NVIDIA DGX Station™ for Windows, the world’s most powerful deskside AI supercomputer for developing and running agents on Windows.
Launched a local AI initiative with optimizations for top open models — DeepSeek v4 Flash, Diffusion Gemma, Nemotron 3.5 Lightning and Qwen 3.8 — and agent harnesses Hermes Agent and OpenClaw across RTX and DGX platforms.
Expanded the NVIDIA DRIVE Hyperion™ robotaxi-ready platform ecosystem, including strategic collaborations with Foxconn, VinFast, Uber and HUMAIN.
Introduced NVIDIA Alpamayo 2 Super, the frontier open reasoning model for safe robotaxi and autonomous vehicle development, for commercial use.
Launched NVIDIA Cosmos™ 3, the world’s first fully open frontier omnimodel for physical AI.
Announced the NVIDIA Isaac™ GR00T Reference Humanoid Robot, the first open humanoid robot reference design built on NVIDIA Jetson Thor™ and the NVIDIA Isaac GR00T open development platform.
Announced NVIDIA Halos for Robotics, the industry’s first full-stack safety system for physical AI, unifying AI compute and safety in a single comprehensive platform.
Released a major collection of open source agent tools and skills for physical AI, enabling developers to turn complex robotics, autonomous vehicle and vision AI workflows into agent-executable tasks.
CFO Commentary
Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at https://investor.nvidia.com.
Conference Call and Webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its second quarter fiscal 2027 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website, https://investor.nvidia.com. The webcast will be recorded and available for replay until NVIDIA’s conference call to discuss its financial results for its third quarter of fiscal 2027.
Non-GAAP Measures
To supplement NVIDIA’s condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, and free cash flow. For NVIDIA’s investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude acquisition-related and other costs, other, gains/losses from equity securities, net, certain other income and expense, and the associated tax impact of these items where applicable. Beginning in the first quarter of fiscal 2027, NVIDIA’s non-GAAP financial measures no longer exclude stock-based compensation expense. The historical non-GAAP financial information presented has been updated to include stock-based compensation expense. Free cash flow is calculated as GAAP net cash provided by operating activities less both purchases related to property and equipment and intangible assets and principal payments on property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the users’ overall understanding of the company’s historical financial performance. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies.
NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
Three Months Ended
Six Months Ended
July 26,
July 27,
July 26,
July 27,
2026
2025
2026
2025
Revenue
$
96,221
$
46,743
$
177,837
$
90,805
Cost of revenue
24,079
12,890
44,538
30,284
Gross profit
72,142
33,853
133,299
60,521
Operating expenses
Research and development
7,054
4,291
13,375
8,280
Sales, general and administrative
1,354
1,122
2,654
2,163
Total operating expenses
8,408
5,413
16,029
10,443
Operating income
63,734
28,440
117,270
50,078
Other income, net
7,773
2,766
24,140
3,039
Income before income tax
71,507
31,206
141,410
53,117
Income tax expense
11,819
4,784
23,400
7,920
Net income
$
59,688
$
26,422
$
118,010
$
45,197
Net income per share:
Basic
$
2.47
$
1.08
$
4.87
$
1.85
Diluted
$
2.46
$
1.08
$
4.85
$
1.84
Weighted average shares used in per share computation:
Basic
24,190
24,366
24,238
24,404
Diluted
24,285
24,532
24,338
24,571
NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
July 26,
January 25,
2026
2026
ASSETS
Current assets:
Cash and cash equivalents
$
22,443
$
10,605
Marketable debt securities
34,143
39,065
Marketable equity securities
42,783
12,886
Accounts receivable, net
63,059
38,466
Inventories
31,575
21,403
Prepaid expenses and other current assets
3,409
3,180
Total current assets
197,412
125,605
Property and equipment, net
14,285
10,383
Operating lease assets
5,390
2,867
Goodwill
21,125
20,832
Intangible assets, net
2,998
3,306
Deferred income tax assets
12,159
13,258
Non-marketable securities
51,157
22,251
Other assets
15,746
8,301
Total assets
$
320,272
$
206,803
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
15,059
$
9,812
Accrued and other current liabilities
26,960
21,352
Short-term debt
1,000
999
Total current liabilities
43,019
32,163
Long-term debt
32,366
7,469
Long-term operating lease liabilities
4,985
2,572
Other long-term liabilities
10,918
7,306
Total liabilities
91,288
49,510
Shareholders’ equity
228,984
157,293
Total liabilities and shareholders’ equity
$
320,272
$
206,803
NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended
Six Months Ended
July 26,
July 27,
July 26,
July 27,
2026
2025
2026
2025
Cash flows from operating activities:
Net income
$
59,688
$
26,422
$
118,010
$
45,197
Adjustments to reconcile net income to net cash
provided by operating activities:
Stock-based compensation expense
2,027
1,624
3,954
3,099
Depreciation and amortization
1,127
668
2,124
1,280
Deferred income taxes
(602
)
18
982
(2,160
)
Gains from equity securities, net
(7,771
)
(2,247
)
(23,707
)
(2,073
)
Other
315
(100
)
222
(196
)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable
(22,346
)
(5,675
)
(24,590
)
(4,743
)
Inventories
(5,784
)
(3,622
)
(10,204
)
(4,880
)
Prepaid expenses and other assets
(5,497
)
387
(6,480
)
946
Accounts payable
1,915
1,314
4,125
2,255
Accrued and other current liabilities
252
(4,053
)
8,015
3,075
Other long-term liabilities
753
629
1,970
979
Net cash provided by operating activities
24,077
15,365
74,421
42,779
Cash flows from investing activities:
Proceeds from sales and maturities of debt securities
24,592
3,150
26,563
6,739
Proceeds from sales of equity securities
7,215
70
7,241
70
Purchases of equity securities
(15,822
)
(346
)
(42,404
)
(1,245
)
Purchases of debt securities
(21,777
)
(7,812
)
(21,777
)
(14,108
)
Purchases related to property and equipment and intangible assets
(2,677
)
(1,894
)
(4,434
)
(3,122
)
Acquisitions, net of cash acquired
(211
)
(294
)
(298
)
(677
)
Other
(15
)
-
(15
)
-
Net cash used in investing activities
(8,695
)
(7,126
)
(35,124
)
(12,343
)
Cash flows from financing activities:
Proceeds related to issuance of debt, net of costs
24,896
-
24,896
-
Proceeds related to employee stock plans
-
-
515
370
Payments related to repurchases of common stock
(19,732
)
(9,721
)
(39,044
)
(23,815
)
Dividends paid
(6,047
)
(244
)
(6,290
)
(488
)
Payments related to employee stock plan taxes
(2,402
)
(1,848
)
(4,531
)
(3,380
)
Groq, Inc.
(2,944
)
-
(2,944
)
-
Principal payments on property and equipment and intangible assets
(59
)
(21
)
(92
)
(73
)
Other
112
-
31
-
Net cash used in financing activities
(6,176
)
(11,834
)
(27,459
)
(27,386
)
Change in cash and cash equivalents
9,206
(3,595
)
11,838
3,050
Cash and cash equivalents at beginning of period
13,237
15,234
10,605
8,589
Cash and cash equivalents at end of period
$
22,443
$
11,639
$
22,443
$
11,639
NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
($ in millions, except per share data)
(Unaudited)
Three Months Ended
Six Months Ended
July 26,
April 26,
July 27,
July 26,
July 27,
2026
2026
2025
2026
2025
GAAP cost of revenue
$
24,079
$
20,458
$
12,890
$
44,538
$
30,284
GAAP gross profit
$
72,142
$
61,157
$
33,853
$
133,299
$
60,521
GAAP gross margin
75.0
%
74.9
%
72.4
%
75.0
%
66.6
%
Acquisition-related and other costs (A)
46
47
49
93
170
Other
-
28
-
28
4
Non-GAAP cost of revenue
$
24,033
$
20,383
$
12,841
$
44,417
$
30,110
Non-GAAP gross profit
$
72,188
$
61,232
$
33,902
$
133,420
$
60,695
Non-GAAP gross margin*
75.0
%
75.0
%
72.5
%
75.0
%
66.8
%
GAAP operating expenses
$
8,408
$
7,621
$
5,413
$
16,029
$
10,443
Acquisition-related and other costs (A)
(176
)
(172
)
(37
)
(348
)
(74
)
Other
-
-
(15
)
-
(15
)
Non-GAAP operating expenses
$
8,232
$
7,449
$
5,361
$
15,681
$
10,354
GAAP operating income
$
63,734
$
53,536
$
28,440
$
117,270
$
50,078
Total impact of non-GAAP adjustments to operating income
222
247
101
469
263
Non-GAAP operating income*
$
63,956
$
53,783
$
28,541
$
117,739
$
50,341
GAAP other income, net
$
7,773
$
16,367
$
2,766
$
24,140
$
3,039
Gains from equity securities, net
(7,771
)
(15,936
)
(2,247
)
(23,707
)
(2,073
)
Other (B)
298
26
1
323
2
Non-GAAP other income, net
$
300
$
457
$
520
$
756
$
968
GAAP net income
$
59,688
$
58,321
$
26,422
$
118,010
$
45,197
Total pre-tax impact of non-GAAP adjustments
(7,251
)
(15,663
)
(2,145
)
(22,915
)
(1,808
)
Income tax impact of non-GAAP adjustments
1,517
2,890
438
4,407
418
Tax expense from OBBBA**
-
-
48
-
48
Non-GAAP net income*
$
53,954
$
45,548
$
24,763
$
99,502
$
43,855
Diluted net income per share
GAAP
$
2.46
$
2.39
$
1.08
$
4.85
$
1.84
Non-GAAP*
$
2.22
$
1.87
$
1.01
$
4.09
$
1.78
Weighted average shares used in diluted net income per share computation
24,285
24,391
24,532
24,338
24,571
GAAP net cash provided by operating activities
$
24,077
$
50,344
$
15,365
$
74,421
$
42,779
Purchases related to property and equipment and intangible assets
(2,677
)
(1,757
)
(1,894
)
(4,434
)
(3,122
)
Principal payments on property and equipment and intangible assets
(59
)
(33
)
(21
)
(92
)
(73
)
Free cash flow
$
21,341
$
48,554
$
13,450
$
69,895
$
39,584
*Includes H20 charges/(releases), net, which were $4.5 billion and none for the first quarter, and ($180 million) and insignificant for the second quarter, of fiscal years 2026 and 2027, respectively.
**Tax expense included represents impact from OBBBA (One Big Beautiful Bill Act).
(A) Acquisition-related and other costs are comprised of amortization of intangible assets, transaction costs, and certain compensation charges and are included in the following line items:
Three Months Ended
Six Months Ended
July 26,
April 26,
July 27,
July 26,
July 27,
2026
2026
2025
2026
2025
Cost of revenue
$
46
$
47
$
49
$
93
$
170
Research and development
$
170
$
167
$
29
$
337
$
57
Sales, general and administrative
$
6
$
5
$
8
$
11
$
17
(B) Comprised of net (gains)/losses on equity derivatives, interest expense related to acquisition consideration discount to be paid in the future, share of net (earnings)/losses related to equity method investments, and dividend income on equity securities.
NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
Q3 FY27 Outlook
($ in billions)
GAAP gross margin
74.0
%
Impact of acquisition-related costs and other costs
-
Non-GAAP gross margin
74.0
%
GAAP operating expenses
$
9.2
Acquisition-related costs and other costs
(0.2
)
Non-GAAP operating expenses
$
9.0