What Happened
Markets & Semiconductors · Compute · Earnings BriefQ2 FY27 (quarter ended 26 Jul 2026) · announced 26 Aug 2026
Data-centre demand keeps outrunning Nvidia's own forecasts
Nvidia's Record $96.2 Billion Quarter
Nvidia reported revenue of $96.2bn for its second quarter of fiscal 2027, the three months to 26 Jul 2026 — up 18% on the previous quarter and 106% on a year earlier, and above the $91.0bn the company itself had guided in May. Data Center revenue, at $89.0bn, was 92.5% of the total and grew 117% year-on-year; within it, the smaller, non-hyperscaler category Nvidia calls ACIE grew faster (138%) than the big cloud platforms it calls Hyperscale (102%). Net income was $59.7bn, more than double a year ago. Nvidia guided the current quarter to $108.0bn, plus or minus 2%, and said its outlook still assumes no Data Center compute revenue from China.
By the Numbers the quarter's headline figures, from Nvidia's own results
- $96.2bntotal revenue, up 106% year-on-year and 18% on the prior quarter
- $89.0bnData Center revenue — 92.5% of the quarter's total, up 117% year-on-year
- $59.7bnGAAP net income, more than double a year earlier
- $7.2bnEdge Computing revenue (includes consumer gaming), up 27% year-on-year
- $108.0bnNvidia's own guidance for next quarter, plus or minus 2%
What's Confirmed, Graded Nvidia's own disclosure, against what is still a forecast
| Standing | What | Detail |
|---|---|---|
| Confirmed | That Q2 FY27 revenue and Data Center revenue were both records | Nvidia's own CFO Commentary states revenue was “a record $96.2 billion” and Data Center revenue was “a record $89.0 billion.” |
| Confirmed | That ACIE grew faster than Hyperscale within Data Center | Hyperscale revenue was $48.7bn, up 102% year-on-year; ACIE (AI Clouds, Industrial & Enterprise) revenue was $40.3bn, up 138%. Nvidia recast both quarters' prior-period figures after reclassifying one customer from ACIE to Hyperscale during the quarter. |
| Confirmed | That Edge Computing growth was held back by consumer PC prices | Nvidia's own CFO Commentary attributes the segment's growth to “strong sales of Blackwell workstations, partially offset by slower consumer PC sales that were tempered by elevated memory and systems prices.” |
| Company forecast, not yet realised | That next quarter's (Q3 FY27) revenue will be $108.0bn | This is Nvidia's own guidance, stated as $108.0bn plus or minus 2%, assuming no Data Center compute revenue from China. Nvidia's prior guidance, given in May for this quarter, was $91.0bn; the quarter delivered $96.2bn. |
Timeline
From Guidance to Result May to August 2026, in Nvidia's own disclosures
- 20 May 2026Nvidia reports Q1 FY27 revenue of $81.6bn and guides Q2 FY27 revenue to $91.0bn, plus or minus 2%. The same release states Nvidia is moving to its current reporting framework — Data Center (split into Hyperscale and ACIE) and Edge Computing — replacing its earlier segment names.
- 26 Jul 2026Nvidia's second quarter of fiscal 2027 closes.
- 26 Aug 2026Nvidia reports Q2 FY27 revenue of $96.2bn, above its own May guidance, and files its results with the U.S. Securities and Exchange Commission. It guides Q3 FY27 revenue to $108.0bn, plus or minus 2%.
- 27 Aug 2026The Verge publishes its own report on the results, framing them around Nvidia's approach to a $100bn quarter.
The Argument
Compute Is Revenue Nvidia's own framing of the quarter, and what its own segment split shows
Nvidia's own framing of the quarter, from founder and CEO Jensen Huang, is that AI infrastructure spending has moved from a bet to a return: “AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” he said in the company's own results statement, adding that demand is “accelerating” as more labs, startups and enterprises build on it. That is the company's characterisation of why demand exists, not an independently verifiable fact. What Nvidia's own segment figures show, independent of that framing, is where the growth actually sits. Within Data Center, Nvidia splits its customers into Hyperscale (the largest public clouds and consumer-internet companies) and ACIE (AI Clouds, Industrial & Enterprise — a broader set of AI-native firms, industrial buyers, sovereign programmes and smaller AI clouds). In this quarter, ACIE grew 138% year-on-year against Hyperscale's 102%, and ACIE's share of Data Center revenue rose from 41.2% a year earlier to 45.3% now. The fastest-growing part of Nvidia's largest business is not the handful of biggest cloud platforms; it is the wider, more varied set of buyers Nvidia groups under ACIE. Edge Computing — the consumer and workstation side of the business, 7.5% of the quarter's revenue — grew far more slowly, at 27% year-on-year, and Nvidia's own commentary attributes part of that slower growth to elevated memory and systems prices working against consumer PC sales even as workstation sales were strong.
- 138%ACIE's year-on-year growth
- 102%Hyperscale's year-on-year growth
- 45.3%ACIE's share of Data Center revenue, up from 41.2% a year ago
The Segments, Compared Nvidia's own market-platform breakdown, all three periods
| Market platform | Q2 FY27 | Q1 FY27 | Q2 FY26 | Q/Q | Y/Y |
|---|---|---|---|---|---|
| Data Center | $89.0bn | $75.2bn | $41.1bn | 18% | 117% |
| Hyperscale | $48.7bn | $43.1bn | $24.2bn | 13% | 102% |
| ACIE | $40.3bn | $32.2bn | $16.9bn | 25% | 138% |
| Edge Computing | $7.2bn | $6.4bn | $5.6bn | 13% | 27% |
| Total | $96.2bn | $81.6bn | $46.7bn | 18% | 106% |
What Others Add
Two Ways to Report the Same Revenue Nvidia's GAAP reportable segments, alongside its market-platform breakdown
| Reportable segment | Q2 FY27 | Q1 FY27 | Q2 FY26 | Q/Q | Y/Y |
|---|---|---|---|---|---|
| Compute & Networking | $88.3bn | $74.6bn | $41.3bn | 18% | 114% |
| Graphics | $7.9bn | $7.1bn | $5.4bn | 12% | 46% |
| Total | $96.2bn | $81.6bn | $46.7bn | 18% | 106% |
Balance Sheet, Capital Return and Commitments what the same quarter's disclosure shows beyond the income statement
Capital return
$26.0bn returned to shareholders
- Buybacks and cash dividends together, in the quarter, per Nvidia's own release
- $99.0bn remained under its repurchase authorisation at quarter-end
- Next dividend: $0.25/share, payable 1 Oct 2026 to holders of record 10 Sep 2026
Balance sheet
Receivables and inventory both grew
- Cash, cash equivalents and marketable debt securities: $56.6bn, up from $50.3bn a quarter earlier
- Accounts receivable: $63.1bn, with days-sales-outstanding of 60, up from 45 — which Nvidia attributes to extended payment terms on large, multi-quarter agreements with certain investment-grade customers
- Inventory: $31.6bn, up from $25.8bn, which Nvidia ties to preparing for the Vera Rubin platform's Q3 FY27 introduction
Forward commitments
Supply commitments more than doubled in one quarter
- Supply-and-capacity commitments: $279bn as of 26 Jul 2026, up from $119bn the quarter before, which Nvidia says is “primarily related to the procurement of memory”
- Nvidia issued $25.0bn of senior unsecured notes in the quarter for general corporate purposes
- Net gains from equity securities fell from $15.9bn in the previous quarter to $7.8bn in this one — an $8.2bn swing, and the reason GAAP net income rose only 2% quarter-on-quarter while operating income rose 19%. Non-GAAP net income, which excludes such gains, rose 18%
Conclusion
What the Quarter Establishes and what is still Nvidia's own forecast, not yet a result
What the results establish
That Nvidia's Q2 FY27 revenue ($96.2bn) and Data Center revenue ($89.0bn) were both records, each beating the company's own prior guidance. That Data Center growth was broader than a hyperscaler story: ACIE, the non-hyperscaler category, grew faster (138% year-on-year) than Hyperscale (102%) and now accounts for 45.3% of Data Center revenue, up from 41.2% a year earlier. That GAAP net income ($59.7bn) more than doubled year-on-year, though its 2% quarter-on-quarter growth trailed revenue and operating income — a gap Nvidia's own reconciliation attributes to equity-securities gains falling from $15.9bn to $7.8bn between the two quarters, not to a change in the underlying business. That Edge Computing, the smaller consumer-and-workstation segment, grew far more slowly (27% year-on-year) than Data Center, with Nvidia's own commentary citing elevated memory and systems prices as a drag on consumer PC sales specifically.
What's still a forecast
That Q3 FY27 revenue will be $108.0bn is Nvidia's own guidance, not a result — the same kind of statement that put Q2 FY27 at $91.0bn in May, a figure the quarter then beat by $5.2bn. Nvidia states that this guidance, like the last, assumes no Data Center compute revenue from China, and that gross margin is guided to 74.0%, a point below the 75.0% actually delivered this quarter. Whether the broadening of demand into ACIE continues at its current pace, and whether memory and systems costs keep weighing on Edge Computing, are both open.
What to Watch Next Quarter signals this quarter's own disclosure points to
- Whether Q3 FY27 revenue lands at, above or below the guided $108.0bn, and by how much — this quarter beat May's guidance by $5.2bn.
- Whether gross margin actually falls to the guided 74.0%, and whether Nvidia attributes any further decline to memory costs specifically.
- Whether ACIE keeps growing faster than Hyperscale, and so keeps widening the base of Nvidia's Data Center business beyond its largest cloud customers.
- Whether Edge Computing's consumer side recovers as memory and systems prices settle, or continues to lag the strength Nvidia reports in workstations.