Nvidia Reports $96.2 Billion Quarter Driven by Data Center Revenue

Nvidia reported fiscal second-quarter 2027 revenue of $96.221 billion for the quarter ended July 26, 2026, up 106% from $46.743 billion a year earlier. The result, released August 26, is the company’s highest quarterly revenue on record.

Data Center sales dominate the quarter

Data Center revenue was $89.023 billion, up 117% year over year and 18% sequentially, according to Nvidia’s earnings release. The segment supplied about 92.5% of Nvidia’s total quarterly revenue.

At the second-quarter revenue rate, Nvidia would generate roughly $385 billion annually. That calculation is an annualized run rate rather than a forecast, but it shows the scale of current spending on AI computing equipment.

Nvidia reported GAAP net income of $59.688 billion, up 126% from a year earlier, and GAAP diluted earnings of $2.46 per share. GAAP gross margin reached 75.0%, compared with 72.4% a year earlier, while operating income rose 124% to $63.734 billion.

Nvidia forecast fiscal third-quarter revenue of $108 billion, plus or minus 2%, which would be about 12% above the reported second-quarter result. The company said this outlook assumes no China Data Center compute revenue.

Supply commitments and customer financing

Nvidia’s supply-and-capacity commitments rose to $279 billion as of July 26 from $119 billion in the preceding quarter. Its quarterly filing says the commitments principally cover memory, manufacturing capacity and Data Center systems.

Those commitments indicate that the current expansion extends beyond chip purchases into memory, semiconductor manufacturing, packaging and Data Center equipment. They also create exposure if demand, customer projects, or supply requirements diverge from Nvidia’s expectations.

Accounts receivable increased to $63.059 billion on July 26 from $38.466 billion on January 25. Nvidia permits certain investment-grade customers payment terms ranging from 90 days to one year for large Data Center builds, tying a larger portion of reported sales to customer payment and project-execution conditions.

One direct customer accounted for 16% of quarterly revenue. Nvidia also disclosed that an unidentified AI research and deployment company contributed a meaningful amount of indirect revenue through cloud-service purchases, leaving the extent of that customer’s contribution undisclosed.

Demand claims and physical constraints

Chief Executive Jensen Huang and Chief Financial Officer Colette Kress said demand was supply-constrained. Kress projected about 70% revenue growth in fiscal 2028, while saying customer forecasts indicated higher demand; these are company projections rather than realized revenue or audited backlog.

Nvidia identifies land, power, permitting, customer access to capital, memory and manufacturing capacity as risks to future revenue. The International Energy Agency projects global Data Center electricity use will rise from 485 TWh in 2025 to about 950 TWh in 2030, a separate estimate consistent with substantial physical infrastructure expansion.

The earnings report verifies rapid current purchasing of AI infrastructure and a high concentration of Nvidia’s revenue in Data Center products. It does not establish whether customers will earn sufficient returns from AI deployments to sustain this level of spending, or whether the investment cycle will avoid a later correction.