Nvidia Third-Quarter Revenue Outlook Reaches $108 Billion
The AI chipmaker posted $96.2 billion in second-quarter sales and said it is not assuming any Data Center compute revenue from China in the new forecast.
Nvidia (NVDA) said it expects third-quarter fiscal 2027 revenue of $108.0 billion, plus or minus 2%, after reporting a record $96.2 billion in the quarter ended July 26, 2026.
The sequential sales pace slowed. Revenue rose 18% from the prior quarter, after a 20% sequential increase in the first quarter, and was up 106% from a year earlier, after 85% year-over-year growth in the prior period. The company is not assuming any Data Center compute revenue from China in the third-quarter outlook.
Data Center revenue was a record $89.0 billion, up 18% sequentially and 117% from a year ago, after $75.2 billion in the first quarter that was up 92% from a year earlier. The company said the increase was driven by the ramp of Blackwell Ultra infrastructure. Hyperscale revenue was $48.7 billion, up 13% sequentially and 102% from a year ago. AI Clouds, Industrial, & Enterprise revenue was $40.3 billion, up 25% sequentially and 138% from a year ago, which the company attributed to end demand from AI natives, enterprises, sovereign customers, and hyperscalers using AI clouds. Shipments of Data Center Hopper products to China were less than 1% of Data Center revenue.
Edge Computing revenue was $7.2 billion, up 13% sequentially and 27% from a year ago. The company said the increase was driven by strong sales of Blackwell workstations, partially offset by slower consumer PC sales tempered by elevated memory and systems prices.
GAAP and non-GAAP gross margins were both 75.0%, up 2.6 and 2.5 points from a year ago and roughly unchanged sequentially. The company said margins increased from a year ago on improved mix from Blackwell Ultra and were approximately flat sequentially as Blackwell remains the vast majority of revenue. GAAP operating expenses were $8.4 billion, up 10% sequentially and 55% from a year ago. GAAP operating income was $63.7 billion, up 19% sequentially and 124% from a year ago. GAAP net income was $59.7 billion, up 2% sequentially and 126% from a year ago, and GAAP diluted earnings were $2.46 a share. Non-GAAP net income was $54.0 billion and non-GAAP diluted earnings were $2.22 a share.
GAAP other income, net, included $7.8 billion of net gains from equity securities. The company returned approximately $26.0 billion to shareholders in the quarter through share repurchases and cash dividends, versus approximately $20.0 billion in the first quarter. Remaining share-repurchase authorization was about $99.0 billion. The next quarterly cash dividend is $0.25 a share, payable October 1, 2026.
Supply and capacity commitments increased from $119 billion last quarter to $279 billion, primarily related to the procurement of memory. In August 2026, Nvidia entered into guarantees to provide credit support on land, power, and shell buildout to secure approximately 4.25 gigawatts at SB Energy’s PORTS-Pike Technology Campus in Ohio, with guarantee obligations capped at a total of $105 billion. The company also announced partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to mobilize over $500 billion of third-party capital for AI-infrastructure buildout over time, subject to definitive agreements.
For the third quarter, GAAP and non-GAAP gross margins are expected to be 74.0%, plus or minus 50 basis points, and GAAP and non-GAAP operating expenses are expected to be approximately $9.2 billion and $9.0 billion, respectively. Founder and CEO Jensen Huang said demand is accelerating and that Vera Rubin, now in full production, was built to power the current buildout.