NVIDIA delivered record-breaking results for the second quarter of fiscal 2027, driven by accelerating demand for artificial intelligence infrastructure and continued expansion of AI-powered data centers.
The company reported $96.2 billion in revenue for the quarter ended July 26, 2026, representing an 18% increase from the previous quarter and a 106% increase compared with the same period last year. GAAP and non-GAAP gross margins both reached 75%.
NVIDIA reported diluted earnings per share of $2.46 under GAAP and $2.22 on a non-GAAP basis.
AI Growth Continues to Drive NVIDIA’s Expansion
NVIDIA founder and CEO Jensen Huang said artificial intelligence has reached a major turning point, with AI systems increasingly performing valuable and profitable tasks.
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” Huang said.
The CEO highlighted strong momentum across AI labs, open-model ecosystems, enterprise applications and physical AI, noting that global AI infrastructure development continues to accelerate.
During the quarter, NVIDIA returned approximately $26 billion to shareholders through share repurchases and cash dividends. At the end of the quarter, the company had approximately $99 billion remaining under its share repurchase authorization.
Data Center Revenue Reaches New Highs
NVIDIA’s data center business remained the company’s primary growth engine, generating $89 billion in quarterly revenue, up 18% from the previous quarter and 117% year over year.
The company announced that its NVIDIA Vera Rubin platform entered full production, with systems being deployed by major technology partners and cloud infrastructure providers.
NVIDIA also introduced new developments for AI factories, including advanced networking systems, AI agent processors, integrated security solutions and platforms designed to help organizations build and operate large-scale AI infrastructure.
One of the company’s major initiatives includes partnerships with leading financial institutions to establish AI infrastructure financing platforms capable of mobilizing more than $500 billion in third-party capital over time.
NVIDIA Expects Continued Growth Ahead
For the third quarter of fiscal 2027, NVIDIA expects revenue of $108 billion, with projected gross margins of approximately 74%.
The company noted that its outlook does not include data center compute revenue from China.
For the full fiscal year 2027, NVIDIA expects GAAP and non-GAAP tax rates to remain between 16% and 18%, excluding discrete items and significant changes to its tax environment.
Expansion Beyond Data Centers
Beyond AI infrastructure, NVIDIA reported $7.2 billion in Edge Computing revenue, representing growth of 13% from the previous quarter and 27% year over year.
The company expanded its initiatives in local AI computing, autonomous vehicles, robotics and advanced enterprise computing solutions.
New developments include platforms for robotaxis, open AI models for physical AI applications, humanoid robotics tools and systems designed to support autonomous AI agents across industries.
NVIDIA Strengthens Its Global AI Ecosystem
During the quarter, NVIDIA announced strategic partnerships with technology companies, governments and research institutions to accelerate global AI adoption.
The company expanded collaborations across Korea, Japan and Europe to develop national AI infrastructure, scientific supercomputers and specialized AI systems for industrial applications.
With Vera Rubin entering full production, continued software innovation and sustained demand for AI computing infrastructure, NVIDIA remains one of the leading companies powering the next generation of artificial intelligence.
