Nvidia Q2 revenue $96.2 billion (August 26, 2026) — the outlook assumes zero from China
NVIDIA reported second-quarter fiscal 2027 results after the US close on August 26, 2026. Revenue was $96.2 billion against a $92.17 billion consensus, up 18 percent sequentially and 106 percent from a year earlier. Data Center revenue of $89.02 billion rose 117 percent year over year and now makes up about 92 percent of the company. Non-GAAP EPS was $2.22 against $2.10 expected. What moved the market was the outlook: $108.0 billion plus or minus 2 percent for the third quarter, above the roughly $104.2 billion analysts had modelled — and the company said explicitly that it assumes no Data Center compute revenue from China in that figure
The three lines
- Results — Revenue $96.2bn (+106% YoY); Data Center $89.02bn (+117% YoY). Both above consensus
- Outlook — Q3 guided to $108.0bn ±2% versus ~$104.2bn expected, assuming zero China Data Center compute
- Stock — Shares fell after hours despite the beat, down about 1.3% half an hour before the call
Key questions
- What was Nvidia's Q2 fiscal 2027 revenue?
- **$96.2 billion** for the quarter ended July 26, 2026 — up **18 percent** sequentially and **106 percent** from the year-ago quarter's $46.7 billion. The LSEG consensus was **$92.179 billion**, so the beat was about $4 billion, or **4.4 percent**. By segment, **Data Center was $89.02 billion**, up **117 percent** year over year, and Edge Computing was $7.2 billion, up 27 percent. That leaves Data Center at roughly **92 percent of the company**. Earnings came in at **$2.46 per share on a GAAP basis** and **$2.22 non-GAAP**, against a $2.10 consensus. Gross margin was **75.0 percent** on both measures, at the upper end of the 74.9 percent ±0.5 point range the company had guided to.
- Why does the guidance matter more than the quarter?
- **Because a reported quarter is already-sold product and guidance is what is still to come.** NVIDIA guided the third quarter to **$108.0 billion ±2 percent**, roughly $3.8 billion above the **$104.2 billion** analysts had modelled, and about 12 percent above the quarter that just closed. One sentence in the release changes what that number means: the company said the outlook assumes **no Data Center compute revenue from China at all**. So $108 billion is a figure built with the world's largest single chip market excluded — any China revenue that does materialise becomes pure upside, and any shortfall cannot be blamed on it. The one soft note is margin: non-GAAP gross margin is guided to **74.0 percent ±50 basis points**, a point below the 75.0 percent just reported. The company did not explain the step down.
- The results beat. Why did the stock fall?
- **Because the expectation was already in the price.** NVIDIA shares had fallen for seven consecutive sessions before the report, snapping that streak on August 26 to close around $213, and then slipped again in after-hours trading — down about **1.3 percent** half an hour before management's conference call. Revenue beat by 4.4 percent and non-GAAP EPS by 5.7 percent. For a company growing 106 percent year over year, that is inside the margin the market had already assumed. Analyst consensus is a published floor; the working benchmark on the desk is the higher unpublished number, and the gap between the two widens the faster a company grows. This page covered that mechanism in "What analyst consensus is" and "Why a stock falls on good earnings."
NVIDIA reported its fiscal 2027 second quarter after the US close on August 26, 2026.
Revenue: $96.2 billion, against a consensus of $92.179 billion.
But the number the market actually traded on was the next one — $108 billion.
1. The quarter
| Item | Q2 result | vs. prior quarter | vs. year ago |
|---|---|---|---|
| Total revenue | $96.2bn | +18% | +106% |
| Data Center | $89.02bn | +18% | +117% |
| Edge Computing | $7.2bn | +13% | +27% |
| GAAP EPS | $2.46 | +3% | +128% |
| Non-GAAP EPS | $2.22 | +19% | +120% |
| GAAP gross margin | 75.0% | +0.1 pt | +2.6 pt |
The quarter ended July 26, 2026. A year earlier the same quarter brought in $46.7 billion. Revenue has more than doubled in twelve months.
Against expectations, revenue beat by 4.4 percent and non-GAAP EPS by 5.7 percent.
2. The company is now essentially one segment
| Segment | Revenue | Share of total |
|---|---|---|
| Data Center | $89.02bn | ~92% |
| Everything else | $7.2bn | ~8% |
NVIDIA began as a maker of graphics cards for games. More than nine-tenths of its revenue now comes from data centres.
That concentration has a consequence worth stating plainly: NVIDIA's results are no longer one chipmaker's results — they are a proxy for the world's rate of AI capital spending. How fast cloud and AI companies build data centres is, more or less, this company's revenue line.
3. There is no China in the $108 billion
| Item | Q3 guidance | Consensus | Q2 actual |
|---|---|---|---|
| Revenue | $108.0bn ±2% | ~$104.2bn | $96.2bn |
| Non-GAAP gross margin | 74.0% ±50bp | — | 75.0% |
And then one sentence in the release:
The outlook assumes no Data Center compute revenue from China.
That changes the character of the number. $108 billion is built with the largest single market for AI chips left out. Any China revenue that appears is upside; any miss cannot be attributed to it.
South Korea has a direct stake here, because Data Center demand at this scale is what pulls high-bandwidth memory out of Samsung Electronics and SK Hynix. This page covered the export-control history in "AI chip export controls: three years of drawing borders around Nvidia silicon."
The one concession is margin. 74.0 percent is a full point below the quarter just reported. More revenue, slightly less of it kept — and the release does not say why.
4. A beat, and a lower stock
NVIDIA shares had fallen for seven straight sessions into the print, closing around $213 on August 26 to snap the streak. After the release they slipped again — roughly 1.3 percent lower half an hour before the call.
This pattern recurs often enough to be a structure rather than an anomaly. Published analyst consensus is a floor, not the working benchmark. Above it sits an unpublished expectation, and for a company compounding at 106 percent a year the distance between the two is wide. A 4.4 percent revenue beat can land inside it.
5. What Seoul reads into this on August 27
The Korean market opens on August 27 having already seen these numbers.
On August 26 the KOSPI closed at 6,808.21, up 0.97 percent and back above 6,800 — and the engine of that move was semiconductors, helped by share-buyback flows from Samsung Electronics and SK Hynix. Korean chip names had spent two sessions without direction, waiting for this print.
- Watch ① — whether the 1.3 percent after-hours decline holds into the regular session.
- Watch ② — how much of $89.02 billion in Data Center revenue converts into HBM orders. That is the line that touches Korean suppliers.
- Watch ③ — the Bank of Korea's rate decision the same morning. Korean equities take a US earnings print and a domestic monetary decision on the same day.
6. What could not be confirmed
- EPS discrepancy — the company release and some outlets report different year-over-year changes. This page follows the release.
- Margin step-down — no explanation for the 74.0 percent guide was given.
- The zero-China assumption — regulation or conservatism cannot be separated from the release alone.
- Data Center composition — the GPU/networking split was not cross-checked.
- Final after-hours move — measured before the call; the regular-session outcome follows in a later edition.
Sources
- NVIDIA Newsroom — NVIDIA Announces Financial Results for Second Quarter Fiscal 2027
- Fortune — Nvidia doubles Q2 revenue to $96 billion and crushes estimates
- CNBC — Nvidia earnings live updates: Q2 results, memory prices and AI outlook
- 24/7 Wall St. — NVIDIA Q2 2027: $96 Billion Quarter Fueled by 117% Data Center Surge
- Kiplinger — Nvidia Earnings: Live Updates and Commentary August 2026
- S&P Global Market Intelligence — Nvidia earnings preview: Q2 2027
- Vantage Markets — NVDA: Snaps 7-Day Skid to $213 Ahead of Earnings