Nvidia (NVDA) reported fiscal Q2 2027 earnings on August 26, 2026, for the quarter ended July 26, 2026: revenue of $96.2 billion, up 18% from the prior quarter and up 106% from a year earlier, with Data Center revenue of $89.0 billion, up 117% [1]. Gross margin was 75.0% on both a GAAP and non-GAAP basis, GAAP diluted earnings per share were $2.46, and non-GAAP EPS was $2.22 [1]. Guidance for fiscal Q3 calls for revenue of $108.0 billion, plus or minus 2% [1]. The stock rose 8.7% to $227.98 on August 27 and closed at $225.73 on September 8, 2026 [2]. This Nvidia fiscal Q2 2027 earnings recap covers the segments, the outlook, the China assumption, the market reaction, and the valuation.
Nvidia fiscal Q2 2027 earnings: what the company reported
Data Center is now 93% of the company. Revenue there reached $89.0 billion, up 18% sequentially and 117% year over year, driven by the ramp of Blackwell Ultra infrastructure and the start of Vera Rubin production [1]. Edge Computing, the new label for the rest of the business, generated $7.2 billion, up 13% sequentially and 27% year over year [1]. GAAP operating income was $63.7 billion and GAAP net income was $59.7 billion, while non-GAAP net income was $54.0 billion [1]. GAAP operating expenses were $8.4 billion, so the company converted about two thirds of revenue into operating profit [1].
| Metric | Fiscal Q2 2027 | Change vs. year ago |
|---|---|---|
| Revenue | $96.2 billion | Up 106% |
| Data Center revenue | $89.0 billion | Up 117% |
| Edge Computing revenue | $7.2 billion | Up 27% |
| GAAP gross margin | 75.0% | n/a |
| GAAP net income | $59.7 billion | n/a |
| GAAP diluted EPS | $2.46 | n/a |
| Non-GAAP diluted EPS | $2.22 | n/a |
| Shareholder returns | $26.0 billion | n/a |
Capital return and the China assumption
Nvidia returned about $26.0 billion to shareholders in the quarter through repurchases and dividends and had $99.0 billion of buyback authorization remaining [1]. The next quarterly dividend of $0.25 per share is payable October 1, 2026 [1]. On China, the company said it is not assuming any Data Center compute revenue from China in its outlook, and it released $180 million of previously recorded H20 charges in the quarter after a $4.5 billion charge in the prior quarter [1]. That makes the $108 billion guide a floor of sorts: any resumption of China sales would be additive.
Fiscal Q3 2027 guidance
For the third quarter Nvidia expects revenue of $108.0 billion, plus or minus 2%, GAAP and non-GAAP gross margins of 74.0%, plus or minus 50 basis points, GAAP operating expenses of about $9.2 billion, non-GAAP operating expenses of about $9.0 billion, and a full-year tax rate of 16% to 18% [1]. The midpoint implies sequential growth of about 12%, a slower pace than the 18% just delivered, and a gross margin one point lower as Vera Rubin ramps. Management highlighted that the Vera Rubin platform is in full production with CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud, and Nebius, and that Blackwell led every MLPerf Training 6.0 benchmark [1].
How NVDA stock reacted to fiscal Q2 2027 earnings
Nvidia's reactions have become smaller as the numbers have become larger. DataPorium's stock market data shows NVDA closing at $209.66 on August 26 before the after-hours release, then rising 8.7% to $227.98 on August 27 on volume of about 299 million shares, about 1.7 times the prior session [2]. The stock gave back part of the move to $217.55 on August 28 before recovering to $225.73 on September 8, 2026, about 7.7% above the pre-report close [2]. Between June 1 and the report date the shares had closed in a band from $190.01 on July 29 to $225.30 on August 13, so the post-report level sits near the top of that range [2].
Nvidia valuation after the report
GAAP net income of $59.7 billion and EPS of $2.46 imply about 24.3 billion diluted shares, which at $225.73 gives a market value near $5.5 trillion [1][2]. Annualizing the quarter's non-GAAP EPS of $2.22 gives $8.88, so the stock trades at about 25 times that run rate, and the $108 billion revenue guide implies the run rate is still rising [1][2]. For a company doubling revenue with a 75% gross margin, 25 times current earnings is not a stretched multiple on its face. The risk is not the multiple but the durability of the denominator: Data Center revenue depends on a handful of hyperscalers and AI cloud providers whose own capex is funded increasingly by debt and equity issuance. Investors may consider that the guided step-down in sequential growth from 18% to 12% is the first data point on how the curve bends.
- Strengths: revenue up 106%, Data Center up 117%, 75% gross margin, $26 billion returned in one quarter [1].
- Guidance: $108.0 billion revenue, 74.0% gross margin, no China Data Center compute revenue assumed [1].
- Watch: sequential growth slowing to about 12% at the guidance midpoint, customer concentration, and the Vera Rubin margin ramp [1].
What to watch next
The fiscal Q3 report in November will test the $108 billion guide and the 74% margin. Investors may consider tracking hyperscaler capex commentary during the October reporting season, since those budgets are Nvidia's revenue, along with any change in the China stance and the pace of buybacks against the $99 billion authorization. Sector-wide comparisons are available on DataPorium's stock market pages [2] and through DataPorium's stock screener [3].
Nvidia's fiscal Q2 2027 quarter doubled revenue to $96.2 billion at a 75% gross margin, and at roughly 25 times annualized earnings the stock is priced more for durability than for further acceleration.
Key takeaways
- Fiscal Q2 2027 revenue was $96.2 billion, up 106%, with Data Center revenue of $89.0 billion, up 117% [1].
- Gross margin was 75.0%, GAAP EPS was $2.46, and non-GAAP EPS was $2.22 [1].
- Fiscal Q3 guidance is $108.0 billion of revenue, plus or minus 2%, at a 74.0% gross margin, with no China Data Center compute revenue assumed [1].
- NVDA rose 8.7% to $227.98 on August 27 and closed at $225.73 on September 8, 2026 [2].
- The stock trades at about 25 times annualized non-GAAP EPS with a market value near $5.5 trillion [1][2].
Frequently asked questions
What were Nvidia's fiscal Q2 2027 earnings?
Nvidia reported revenue of $96.2 billion, up 106% year over year, GAAP diluted EPS of $2.46, and non-GAAP diluted EPS of $2.22 for the quarter ended July 26, 2026 [1].
What is Nvidia's revenue guidance for fiscal Q3 2027?
Nvidia expects fiscal Q3 2027 revenue of $108.0 billion, plus or minus 2%, with GAAP and non-GAAP gross margins of 74.0%, plus or minus 50 basis points [1].
How much of Nvidia's revenue comes from data centers?
Data Center revenue was $89.0 billion of the $96.2 billion total in fiscal Q2 2027, about 93% of revenue [1].
How did Nvidia stock react to the August 2026 earnings report?
NVDA rose 8.7% to $227.98 on August 27, 2026, the first session after the release, and closed at $225.73 on September 8, 2026 [2].
