Nvidia reported fiscal second-quarter revenue of $96.221 billion and GAAP net income of $59.688 billion, extending the extraordinary expansion in spending on artificial-intelligence computing infrastructure. The chipmaker forecast $108 billion in revenue for the fiscal third quarter, a central estimate that would add roughly $11.8 billion of sales in a single quarter.
The results, released Aug. 26 for the quarter ended July 26, put Nvidia’s Data Center business at $89 billion of revenue, or about 92.5% of company sales. The outlook also comes with an explicit limitation: Nvidia said it assumes no Data Center compute revenue from China in its third-quarter forecast, separating the company’s near-term sales target from an important market where its ability to sell advanced products has faced constraints.
Data Center sales remain the engine
According to Nvidia’s financial-results release, total revenue rose 18% from the preceding quarter and 106% from a year earlier. Data Center revenue increased at nearly the same sequential rate, 18%, and climbed 117% year over year. The figures show that nearly all of the company’s current scale is tied to processors, systems and related products used to train and run AI models in data centers.
The year-over-year comparison illustrates the speed of the expansion. Nvidia reported $46.743 billion in revenue and $26.422 billion in GAAP net income in fiscal second-quarter 2026, according to its SEC filing for the year-earlier period. Revenue has therefore increased by about $49.5 billion in 12 months, more than doubling from that base.
Sequentially, the company moved from $81.615 billion of revenue in fiscal first-quarter 2027 to $96.221 billion in the latest period. Its prior-quarter SEC filing reported GAAP net income of $58.321 billion, meaning revenue grew far faster than net income during the latest quarter. Nvidia reported net income up 2% sequentially and 126% from a year earlier.
For investors parsing the headline profit number, $59.688 billion is Nvidia’s GAAP quarterly net income, not an annual figure. It rounds to $59.69 billion. The company separately reported non-GAAP net income of $53.954 billion; the two measures should not be treated interchangeably. On a GAAP basis, net income equaled roughly 62% of reported revenue in the quarter.
Guidance points to another step up, with a defined China assumption
Nvidia’s $108 billion fiscal-third-quarter revenue target carries a plus-or-minus-2% range, putting the company’s stated planning interval between about $105.84 billion and $110.16 billion. At the midpoint, the forecast implies approximately 12.2% sequential revenue growth from the fiscal second quarter. It is guidance, rather than booked revenue, and it is based on management’s assumptions about production and customer demand.
One of those assumptions is unusually specific. Nvidia said the forecast includes no Data Center compute revenue from China. That does not establish that Nvidia has no China-related revenue across its business. Rather, it defines what is, and is not, incorporated in the particular Data Center compute forecast that investors will use to judge the coming quarter.
The company expects GAAP and non-GAAP gross margins of 74%, plus or minus 50 basis points, in the third quarter. That would be below the 75% GAAP gross margin it reported for fiscal second-quarter 2027 but remains above the 72.4% margin recorded a year earlier. Gross margin measures the share of sales remaining after the direct cost of products sold, before operating expenses, taxes and other items; its direction is closely watched as Nvidia scales more complex systems alongside chips.
Founder and Chief Executive Jensen Huang said in the earnings release that AI demand was accelerating. Nvidia’s reported sales support the point that customers are still committing substantial capital to AI capacity, though the company’s formal quarterly outlook is more limited than a broad statement about the market: it contains a revenue range, a margin expectation and the China-related assumption.
Supply discussion goes beyond the official quarterly forecast
On the earnings call, Chief Financial Officer Colette Kress described the longer-term outlook as supply-constrained, according to CNBC’s report on the discussion. CNBC also reported that Huang said an unconstrained outlook would be higher when asked about capacity. Those comments frame manufacturing availability as a factor in how much demand Nvidia can convert into reported sales.
CNBC reported discussion of a 70% sales-growth projection for 2028. Nvidia’s earnings release, however, provides quarterly fiscal-third-quarter guidance rather than a full-year fiscal-2028 forecast. The longer-range figure is therefore a call-reported characterization, not a number confirmed in the company’s published earnings release.
Nvidia also returned approximately $26 billion to shareholders during the quarter through buybacks and cash dividends, and said roughly $99 billion remained available under its repurchase authorization at quarter-end. The scale of those distributions sits alongside a business generating cash at levels that have turned a single product cycle into a broader question for technology investors: whether customers can continue deploying AI systems rapidly enough to sustain Nvidia’s expanding revenue base while supply remains a stated constraint.
