NVIDIA posts $96.2 billion in Q2 revenue, up 106% year over year, as data center demand keeps outrunning supply

NVIDIA reported revenue of $96.2 billion for its second fiscal quarter of 2027 (ended July 26, 2026), up 18% from the prior quarter and up 106% from a year earlier, the company said in its August 26 earnings release. Data Center revenue alone came in at $89.0 billion, up 117% year over year and now accounting for roughly 92% of total sales.

What's new

• Total revenue: $96.2 billion, beating the company's own prior guidance and up 18% quarter over quarter.
• Data Center: $89.0 billion, up 18% sequentially and 117% year over year — the segment driving almost all of NVIDIA's growth.
• Edge Computing: $7.2 billion, up 13% sequentially and 27% year over year.
• Margins: GAAP and non-GAAP gross margin both landed at 75.0%, up roughly 2.5 points from a year ago.
• Earnings per share: GAAP diluted EPS of $2.46 (up 128% year over year) and non-GAAP diluted EPS of $2.22 (up 120% year over year).
• Dividend: a quarterly cash dividend of $0.25 per share, payable October 1, 2026, to shareholders of record as of September 10, 2026.
• Guidance: NVIDIA guided Q3 FY2027 revenue to $108.0 billion (±2%), which would mark another double-digit sequential jump, with gross margin guided to 74.0% (±50 basis points).

Founder and CEO Jensen Huang framed the quarter as a turning point for how AI spending shows up on balance sheets: "AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue. And demand is accelerating."

Context

The results land against a backdrop of NVIDIA racing to keep pace with hyperscaler buildouts. The company has spent recent weeks announcing multi-gigawatt compute commitments with cloud partners and financing arrangements framing AI infrastructure as an investable asset class, and it is reportedly in the process of acquiring Hugging Face. Data Center has now been the overwhelming majority of NVIDIA's business for several consecutive quarters, and this report is the fourteenth straight quarter in which the company has beaten its own prior guidance.

Why it matters

A 106% year-over-year revenue jump at NVIDIA's scale is a real-time read on how much of the broader AI capital cycle — data center buildouts, GPU orders, model training runs — is actually converting into revenue rather than remaining speculative spend. The 92%-from-Data-Center mix underscores how completely NVIDIA's growth story now depends on AI infrastructure demand specifically, rather than gaming or professional visualization. The Q3 guide of $108.0 billion, if hit, would extend the growth streak and add fuel to the argument that AI infrastructure spending — despite persistent "bubble" concerns from skeptics — is still being met by real, paying demand on NVIDIA's order books.