Nvidia reported revenue of $96.2 billion in the second quarter of its fiscal 2027, which ended on July 26, 2026. Revenue increased 18% compared with the previous quarter and 106% year over year, exceeding expectations of around $92 billion.
The company also recorded adjusted earnings per share of $2.22, compared with expectations of approximately $2.10, while net income under generally accepted accounting principles (GAAP) rose to $59.7 billion, compared with $26.4 billion in the same period a year earlier. Gross margin was approximately 75%.
Data Centers Dominate Results
Nvidia’s data center business continued to lead its performance, generating revenue of $89 billion, up 18% from the previous quarter and 117% from the previous year. This segment represents more than 90% of the company’s total revenue, demonstrating the extent to which Nvidia’s current results depend on spending related to artificial intelligence infrastructure.
Jensen Huang, Nvidia’s CEO, said that artificial intelligence has reached a stage at which it is producing useful work and revenue, pointing to accelerating demand for computing capacity. According to the company’s account of his remarks, this demand is no longer limited to a small number of AI labs, but includes advanced model developers, startups, the open-model ecosystem, and physical AI applications.
Vera Rubin Platform Enters Large-Scale Production
Nvidia also said that its next-generation Vera Rubin platform has entered full production, and that its systems have begun deployment at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure, and Nebius. The material provides no additional details about the scope of availability or the systems’ specifications, so the practical impact of these deployments cannot be assessed from the published figures alone.
China Excluded From Next-Quarter Forecast
Nvidia expects revenue of $108 billion, plus or minus 2%, in the third quarter of its fiscal 2027, with a gross margin of approximately 74%. Notably, this forecast assumes no revenue from data center computing in China, amid continuing U.S. restrictions on the sale of advanced AI chips to the Chinese market.
Why Does This News Matter?
The results show that Nvidia’s expansion depends not only on revenue growth, but also on the continued concentration of its business in data centers and spending on AI infrastructure. The exclusion of China from the forecast also shows that the company is basing its near-term estimates on demand in other markets, despite trade restrictions remaining an influential factor. Colette Kress, the chief financial officer, said that the company expects revenue growth of approximately 70% in fiscal 2028 based on customer estimates and current demand. However, the source does not provide a breakdown showing how this growth is distributed among customers, regions, or products.