NVIDIA reported fiscal second-quarter 2027 revenue of $96.2 billion, up 106% from $46.7 billion in the same period a year earlier, as demand for AI infrastructure accelerated across hyperscale and enterprise segments.
The Santa Clara-based company said data center revenue, which accounted for 92.7% of total sales, reached $89.2 billion, including $48.7 billion from hyperscale customers and $40.3 billion from AI clouds, industrial and enterprise segments. The company returned $26 billion to shareholders during the quarter, primarily through share buybacks and dividends, up from $10 billion in Q2 FY26.
Profitability metrics surged, with GAAP net income rising 126% to $59.7 billion and non-GAAP net income up 118% to $54.0 billion. GAAP earnings per share increased 128% to $2.46, while non-GAAP EPS climbed 120% to $2.22. Gross margins remained robust at 75% on both GAAP and non-GAAP bases, though operating expenses rose 55% to $8.4 billion due to expanded R&D and infrastructure investments.
Free cash flow grew 58% year-over-year to $21.3 billion, supporting the company's capital return program. Inventory levels stood at $32 billion, with days sales outstanding extending to 60 days. Return on equity reached 114%, reflecting strong capital efficiency.
For the fiscal third quarter, NVIDIA guided revenue to $108 billion, implying 12% sequential growth, though gross margins are expected to decline slightly to 74% due to memory pricing pressures. The Vera Rubin platform, which entered production shipments in early August 2026, is anticipated to contribute approximately 20% of data center revenue in Q3. The company explicitly excluded any revenue from data center compute in China from its guidance.
Longer-term, NVIDIA projected fiscal 2028 revenue growth of about 70%, with CPU revenue expected to more than double. Management highlighted continued strength in Blackwell architecture demand and the expansion of agentic AI workloads, which require 15 to 100 times more computing power than traditional applications.
Shares rose 3.93% in after-hours trading to $217.89 following the results, while the regular session closed down 1.59% at $209.66. The stock's 52-week range spans $164.07 to $236.54, and the company's market capitalization exceeds $5 trillion.
