Nvidia reported fiscal second-quarter revenue of $96.2 billion, up 106% from a year earlier, as demand for the systems used to build and operate artificial intelligence data centers continued to rise.
Revenue increased 18% from the previous quarter and exceeded the $92.27 billion average analyst estimate cited by the Associated Press.
Nvidia’s results covered the three months ended July 26, 2026. The company’s fiscal year runs ahead of the calendar year, which is why it calls the period the second quarter of fiscal 2027.
GAAP net income rose 126% to $59.69 billion, while diluted earnings increased from $1.08 to $2.46 per share. On Nvidia’s adjusted basis, earnings were $2.22 per share, compared with the $2.09 analyst consensus reported by AP.
Data centers now account for most of Nvidia’s business
Data Center revenue reached $89.0 billion, up 117% from a year earlier and 18% from the previous quarter. That division generated about 92.5% of total revenue, according to an MBN calculation.
The figure covers more than graphics processors. Nvidia sells complete computing platforms that combine processors, networking equipment and software. Customers include cloud providers, AI laboratories and companies building their own large computing systems.
The remaining business, now reported as Edge Computing, generated $7.2 billion in revenue, up 27% from a year ago. It includes products used in personal computers, vehicles, robotics and other computing systems outside large centralized data centers.
Nvidia said its newer Vera Rubin platform was entering full production, with systems running at partners including CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius. Those are company statements about the production ramp and partner deployments, not a guarantee of future sales.
Gross margin was 75.0%, up 2.6 percentage points from a year earlier. A gross margin shows the share of revenue left after the direct cost of producing and delivering products, before operating expenses, interest and taxes.
Operating expenses increased 55% to $8.41 billion, but operating income rose 124% to $63.73 billion because revenue grew faster than costs. This operating leverage is a major reason Nvidia’s profit growth continued to outpace its already rapid expense growth.
Nvidia expects another record quarter
For the third quarter, Nvidia forecast revenue of $108 billion, plus or minus 2%. The company expects a GAAP gross margin of about 74.0% and operating expenses of roughly $9.2 billion.
The outlook assumes no Data Center compute revenue from China. That exclusion is important because US export controls can restrict which advanced processors Nvidia is permitted to sell to Chinese customers.
Nvidia returned about $26.0 billion to shareholders through repurchases and dividends during the quarter. It had approximately $99.0 billion remaining under its share-repurchase authorization at the end of July.
The company is also taking a more direct role in financing the infrastructure that supports its customers. As MBN recently reported, Nvidia agreed to provide guarantees capped at a cumulative $105 billion for part of the Ohio computing capacity OpenAI plans to lease.
That arrangement is contingent and is not an immediate payment. It nevertheless shows how Nvidia is moving beyond selling hardware to helping secure land, power, buildings and financing for future AI capacity.
The latest quarter confirms that current demand remains exceptionally strong. The practical test is whether cloud providers and AI developers can keep converting their capital spending into profitable services at a pace that supports Nvidia’s $108 billion sales target and the much larger infrastructure commitments now forming around it.
