Nvidia Corporation delivered another record-breaking performance in its fiscal second quarter of 2027, driven by relentless global demand for artificial intelligence infrastructure. The Silicon Valley giant reported revenue of $96.2 billion, marking an outstanding 106% year-over-year surge and comfortably beating the consensus estimate of $92.2 billion. The stock was up 4.7% in after hours.
Key Financial Highlights:
- Revenue: $96.2 billion (+106% YoY, +18% QoQ)
- Adjusted EPS: $2.22 (beating estimates of $2.10)
- Data Center Revenue: $89.0 billion (+117% YoY)
- Free Cash Flow: $21.3 billion
GAAP net income more than doubled to $59.7 billion, up from $26.4 billion in the prior year’s quarter. On an adjusted basis, non-GAAP net income reached $54.0 billion, resulting in a diluted earnings per share (EPS) of $2.22, which outpaced Wall Street projections of $2.10.
The company’s massive growth remains anchored in its dominant Data Center division, which generated $89.0 billion in revenue—a 117% increase year-over-year that exceeded analyst expectations of $85.8 billion. Meanwhile, the Edge Computing segment contributed $7.2 billion, growing 27% year-over-year. Nvidia maintained stellar profitability, posting GAAP and non-GAAP gross margins of 75.0%, representing a 2.5 percentage point expansion from the same period last year. This stellar profitability reflects Nvidia’s operational efficiency as the global AI infrastructure buildout proceeds at full steam.
A key factor in the GAAP earnings was a non-recurring $7.8 billion net gain from equity investments, which pushed GAAP net income higher than non-GAAP results. Operationally, core growth was exceptionally robust: adjusted operating income climbed 124% year-over-year to $64.0 billion. Nvidia’s balance sheet reflects exceptional liquidity, closing the quarter with $22.4 billion in cash and cash equivalents against $1.0 billion in short-term debt and $32.4 billion in long-term debt. Shareholder returns were also a major focal point, with Nvidia deploying approximately $26.0 billion in share repurchases and dividends, backed by a remaining purchase authorization of roughly $99.0 billion.
Looking ahead, Nvidia expects third-quarter revenue of $108.0 billion, plus or minus 2%, ahead of the $104.2 billion market consensus. This guidance is particularly strong given that it assumes zero Data Center compute revenue from China. Chief Executive Officer Jensen Huang noted that AI has hit an “inflection point,” with the company’s next-generation Vera Rubin platform already ramping into full production to sustain this historic momentum.
