Nvidia's revenue hit $96.2 billion in the second quarter of fiscal 2027, up 106% from a year ago, as demand for AI computing hardware continued to surge, the company announced.
Data Center business drives the surge
The quarter, which ended July 26, saw revenue climb 18 percent from the previous quarter, with Data Center revenue alone reaching $89.0 billion, up 117 percent year-on-year. GAAP and non-GAAP gross margins both stood at 75.0 percent. GAAP earnings per diluted share came in at $2.46, while non-GAAP earnings per diluted share stood at $2.22. Edge Computing revenue, a smaller segment covering gaming, robotics and PCs, rose to $7.2 billion, up 13 percent sequentially and 27 percent from a year ago.
Jensen Huang says AI has hit an 'inflection point'
Nvidia founder and CEO Jensen Huang said AI had moved past the experimental stage and was now generating direct returns. "AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue," Huang said, adding that demand was broadening beyond a single dominant AI lab to a wider set of frontier labs, startups and open-model developers. He pointed to the company's new Vera Rubin platform, now in full production, as central to meeting this demand.
Shareholder returns and dividend
During the quarter, Nvidia returned approximately $26.0 billion to shareholders through stock buybacks and dividends, and had about $99.0 billion left under its share repurchase authorisation as of quarter-end. The company will pay its next quarterly dividend of $0.25 per share on October 1, to shareholders on record as of September 10.
For the third quarter of fiscal 2027, Nvidia expects revenue of $108.0 billion, plus or minus 2 percent, notably without factoring in any Data Center compute revenue from China. GAAP and non-GAAP gross margins are projected at 74.0 percent, plus or minus 50 basis points.
