NVIDIA Earnings: Revenue Doubles to $96.2 Billion as FY2028 Outlook Drives Stock Reversal

Key Takeaways

• NVIDIA posted record fiscal Q2 2027 revenue of $96.22 billion, up 106% from a year earlier, as Data Center sales climbed 117% to $89.0 billion.
• The chipmaker forecast fiscal Q3 revenue of $108 billion, plus or minus 2%, while excluding any China Data Center compute sales from the outlook.
• NVIDIA shares initially weakened in extended trading before rising as much as roughly 4%–5% during the earnings call, after management projected approximately 70% revenue growth for fiscal 2028.

NVIDIA Q2 FY2027 Results Beat Expectations

source: NVIDIA Results for Second Quarter Fiscal 2027

Quarterly revenue reached $96.22 billion, rising 18% from the previous quarter and 106% year over year. That was above the approximately $92.27 billion average analyst estimate cited by FactSet. Adjusted earnings were $2.22 per diluted share, compared with a consensus estimate of $2.09, according to the Associated Press.

GAAP net income increased 126% from a year earlier to $59.69 billion, or $2.46 per diluted share. Both GAAP and non-GAAP gross margins stood at 75.0%, while operating income more than doubled to $63.73 billion on a GAAP basis. The figures show that NVIDIA converted the revenue surge into substantial earnings growth despite higher operating expenses.

NVIDIA also returned about $26 billion through repurchases and dividends and had approximately $99 billion left under its repurchase authorisation. The results are detailed in its SEC-filed fiscal Q2 2027 release.

Data Center Accounts for Nearly 93% of Revenue

Data Center revenue rose to $89.0 billion, up 18% sequentially and 117% from the prior-year period. The division generated nearly 93% of NVIDIA’s total quarterly sales, highlighting both the strength of AI demand and the company’s increasing dependence on large-scale computing infrastructure.

NVIDIA said its Vera Rubin platform was moving into full production, with systems operating at partners including major cloud and AI infrastructure providers. Edge Computing revenue, which includes businesses outside the core Data Center segment, increased 27% year over year to $7.2 billion.

Data Center remains the principal earnings driver, but this concentration leaves NVIDIA sensitive to changes in hyperscaler spending, deployment schedules and component availability.

NVIDIA Stock Reverses as Investors Focus on Fiscal 2028

NVIDIA shares fell about 1.6% in regular trading before the report and initially moved lower after the results. The stock then reversed direction during the conference call, rising as much as approximately 4.4%–4.8% from the regular-session close after Chief Financial Officer Colette Kress outlined an expectation for roughly 70% revenue growth in fiscal 2028.

The reversal suggests investors were looking beyond the quarterly beat for evidence that growth could remain elevated as NVIDIA moves into its next fiscal year. Because extended-hours quotations can change rapidly, the move should not be treated as a confirmed regular-session closing gain.

$108 Billion Guidance Extends the Growth Runway

NVIDIA expects fiscal third-quarter revenue of $108 billion, plus or minus 2%. The midpoint would represent approximately 12% sequential growth from fiscal Q2 and would take the company above $100 billion in quarterly revenue for the first time.

The forecast also exceeded the roughly $104.2 billion analyst average reported before the call. However, NVIDIA explicitly stated that the outlook assumes no Data Center compute revenue from China, making trade restrictions and product eligibility important variables for future forecasts.

The company expects fiscal Q3 gross margin of 74.0%, plus or minus 50 basis points, down from 75.0% in the reported quarter. Revenue growth therefore remains strong, but the direction of margins may be at least as important as the top-line figure in shaping the next earnings reaction.

Margin Pressure and Supply Constraints Remain Key Risks

Management said NVIDIA remained supply-constrained and indicated that growth could have been stronger with greater product availability. Supply limitations can support pricing and near-term demand visibility, but they can also delay revenue and restrict the company’s ability to meet customer deployment schedules.

Memory costs are another pressure point. Management indicated that gross margin could fall to roughly 71%–72% in the January quarter before settling around 72%–73% in the following fiscal year. Even at those levels, profitability would remain high by semiconductor-industry standards, but a sustained decline could affect earnings growth and valuation assumptions.

NVIDIA has also announced partnerships intended to mobilise more than $500 billion of third-party infrastructure capital over time, subject to definitive agreements. The plans may expand capacity but have raised questions about financing links within the AI ecosystem. Their economics will ultimately depend on utilisation and customer revenue.

Huang’s AGI Comment Requires Context

CEO Jensen Huang said AI is producing commercially useful output and suggested that artificial general intelligence could, under some definitions, be considered achieved.

The statement is not a confirmed technological milestone. AGI has no universally accepted test and provides no measurable basis for forecasting NVIDIA’s revenue. The financially relevant point is that large-scale AI deployment continues to drive demand for its computing platform.

What Traders May Watch Next

The next phase of the NVIDIA earnings story will depend on whether the Vera Rubin production ramp proceeds on schedule, whether additional supply becomes available and how quickly rising memory costs affect gross margin. China exposure, export controls and the pace of spending by cloud providers and frontier AI companies will remain important external variables.

NVIDIA’s fiscal Q2 results support the view that AI infrastructure demand remains exceptionally strong. However, the stock’s sharp extended-hours reversal also underscores the level of expectation embedded in the shares. Future price moves may depend less on whether NVIDIA continues to grow and more on whether revenue, margins and supply improve faster or slower than the market already anticipates.