Nvidia Q2 Revenue Surges 106% YoY as Data Center Revenue Hits Record High, Yet Shares Dip 1% After Hours

TradingKey - Nvidia (NVDA) fell over 2% at one point after reporting its second-quarter fiscal 2027 financial results on August 26 ET. As of press time, the decline narrowed to 1.24%, trading at $207.06.

During the period, Nvidia's revenue grew 106% year-over-year and 18% quarter-over-quarter to $96.221 billion, and during the period, Nvidia's revenue grew 106% year-over-year and 18% quarter-over-quarter to $96.221 billion. Among this, the Data Center business remained the primary driver of revenue growth, with approximately 92% of revenue coming from this segment.

[Source: TradingView]

Specifically, Data Center revenue hit a record high of $89.023 billion, up 117% year-over-year and 18% quarter-over-quarter, driven mainly by the volume sales of Blackwell Ultra infrastructure.

Among this, Hyperscale cloud revenue reached $48.71 billion, doubling year-over-year (up 102%); AI Clouds, Industrial & Enterprise revenue rose significantly by 138% year-over-year to $40.313 billion. The company stated that the growth stemmed from end-user demand from AI-native enterprises, corporate, and sovereign customers, as the demand structure spreads from hyperscalers to a broader customer base.

Notably, shipments of Data Center Hopper products to China during the period accounted for less than 1% of Data Center revenue. In addition, Compute & Networking segment revenue grew 114% year-over-year to $88.299 billion; Graphics segment revenue grew 46% year-over-year to $7.922 billion; and Edge Computing revenue grew 27% year-over-year to $7.198 billion, with strong Blackwell workstation sales partially offset by a slowdown in consumer PC sales.

[Source: Nvidia]

On the profitability side, under GAAP rules, Nvidia's second-quarter net income was $59.688 billion, up 126% year-over-year, with diluted EPS of $2.46. Under non-GAAP rules, net income was $53.954 billion, up 118% year-over-year, with adjusted EPS of $2.22, exceeding the market consensus of $2.08.

During the period, gross margin was 75.0%, up 2.6 percentage points year-over-year and up slightly by 0.1 percentage point quarter-over-quarter, essentially in line with the market expectation of 75%.

Regarding guidance, Nvidia expects third-quarter revenue to be $108 billion (plus or minus 2%), above the market expectation of $104.2 billion; notably, this guidance assumes no Data Center compute revenue from China.

The company expects both GAAP and non-GAAP gross margins to be 74.0% (plus or minus 50 basis points); GAAP operating expenses are expected to be approximately $9.2 billion, and non-GAAP operating expenses approximately $9.0 billion; the GAAP and non-GAAP tax rates for fiscal 2027 are expected to be between 16% and 18%.