NVIDIA reported another massive acceleration in fiscal second-quarter 2027 financial results, with operating income more than doubling as revenue surged past $96 billion and gross profit reached more than $72 billion.
Revenue for the quarter ended July 26 reached $96.2 billion, up 106% from $46.7 billion a year earlier and 18% from the first quarter.
Operating income increased even faster, jumping 124% year-over-year to $63.7 billion from $28.4 billion. That implies a GAAP operating margin of roughly 66.2%, compared with about 60.8% in the prior-year period.
Gross profit more than doubled to $72.1 billion from $33.9 billion.
GAAP gross margin expanded to 75% from 72.4%, an improvement of 260 basis points. Non-GAAP gross margin also reached 75%, compared with 72.5% a year earlier.
The combination of rapid top-line growth and margin expansion drove net income to $59.7 billion, up 126% from $26.4 billion. Diluted EPS increased 128% to $2.46 from $1.08.
On a non-GAAP basis, operating income increased 124% to $64 billion, while net income rose 118% to $54 billion.
Data Center remained the dominant growth engine.
Second-quarter Data Center revenue reached $89 billion, up 117% year-over-year and 18% sequentially. That means Data Center represented more than 92% of NVIDIA’s total quarterly revenue.
The segment continues to benefit from the global buildout of AI infrastructure.
NVIDIA said its Vera Rubin platform is ramping into full production, with systems already running at partners including CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius.
The company also announced new AI infrastructure financing partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR designed to mobilize more than $500 billion of third-party capital over time.
NVIDIA’s outlook suggests the growth trajectory remains steep.
For the fiscal third quarter, the company expects revenue of approximately $108 billion, plus or minus 2%.
That midpoint would represent another roughly 12% sequential increase from the second quarter.
Importantly, NVIDIA said the forecast assumes no Data Center compute revenue from China.
GAAP and non-GAAP gross margins are both expected to be approximately 74%, plus or minus 50 basis points, while operating expenses are expected to reach roughly $9.2 billion on a GAAP basis and $9 billion on a non-GAAP basis.
NVIDIA also continued returning capital to shareholders.
The company returned approximately $26 billion through share repurchases and cash dividends during the quarter and had approximately $99 billion remaining under its repurchase authorization at quarter-end.
KEY QUOTES:
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.”
“The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment.”
Jensen Huang, Founder and CEO of NVIDIA
