NVIDIA Q2 2027 earnings: record revenue as AI chip demand keeps surging
NVIDIA topped Wall Street's profit and sales targets in Q2 2027, driven by soaring demand for its AI data-center chips, and issued a strong Q3 outlook.
| Q2 2027 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $2.22 | $2.14 | +3.8% |
| Revenue | $96.22B | $94.01B | +2.4% |
Key takeaways
- NVIDIA beat both profit and revenue expectations for the quarter, with results driven almost entirely by its data center business, which sells the specialized chips used to build and run AI systems.
- Data center revenue came in around $89 billion, more than doubling from a year earlier, as customers ramped up purchases of NVIDIA’s newest Blackwell Ultra AI chips; that single business line now makes up roughly 92% of all NVIDIA sales.
- The very high margins shown in the fundamentals table (gross margin near 74%, operating margin above 64%) mean NVIDIA keeps a large share of every sales dollar as profit, a sign that demand for its chips remains strong enough that it hasn’t had to cut prices to compete.
- For the current quarter (Q3 2027), NVIDIA guided to about $108 billion in sales, ahead of analyst forecasts of roughly $104 billion, signaling management expects AI spending by its customers to keep accelerating rather than plateau.
- CEO Jensen Huang told investors that customer demand for NVIDIA’s chips is running even higher than the company’s own already-bullish growth outlook, and that NVIDIA is working with suppliers to expand manufacturing capacity to keep up.
- NVIDIA’s guidance for the current quarter assumes no data-center chip sales to China, reflecting ongoing U.S. export restrictions; executives noted some Chinese customers have recently obtained licenses, but the situation remains unresolved and is excluded from guidance.
- Management pointed to steadily rising per-generation revenue opportunity for its chip platforms, citing roughly $18 billion for the prior Hopper generation, $25 billion for Blackwell, and an expected $40 billion for the upcoming Vera Rubin platform, as a gauge of how much bigger each new chip generation’s business could become.
Q2 2027 in context
| Metric | Jul 2026 | Jul 2025 | Change |
|---|---|---|---|
| Revenue | $96.2B | $46.7B | +105.9% |
| Net income | $59.7B | $26.4B | +125.9% |
| Free cash flow | $21.4B | $13.5B | +58.9% |
| Diluted EPS | $2.46 | $1.08 | +127.8% |
| Gross margin | 75.0% | 72.4% | +2.6 pts |
| Operating margin | 66.2% | 60.8% | +5.4 pts |
| Net margin | 62.0% | 56.5% | +5.5 pts |
Figures for the quarter ended Jul 2026 and the quarter ended Jul 2025, as reported to the SEC.
Each company's quarter ending in calendar Q3 '26, as reported to the SEC. A peer that reported no revenue figure for that quarter is left out.
How the stock took it
NVIDIA Corporation closed at $213.05 on Aug 25, 2026, the last session before the report, and at $227.98 on Aug 27, 2026, the first session after it — +7.0% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| Jul 27, 2026 | $206.84 | $197.01 | -4.8% |
| Jul 26, 2026 | $206.84 | $196.51 | -5.0% |
| May 20, 2026 | $220.61 | $219.51 | -0.5% |
| Nov 19, 2025 | $181.36 | $180.64 | -0.4% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 74.2% | Trailing 12 months |
| Operating margin | 64.0% | Trailing 12 months |
| Net profit margin | 63.0% | Trailing 12 months |
| Pretax margin | 74.7% | Trailing 12 months |
| EPS | $6.53 | Trailing 12 months |
| Revenue growth (YoY) | 70.7% | Trailing 12 months |
| EPS growth (YoY) | 110.3% | Trailing 12 months |
| Return on equity | 111.7% | Trailing 12 months |
Sources: company report · earnings call · CNBC