NVIDIA reported fiscal 2027 second-quarter results that topped Wall Street expectations, posting $96.2 billion in total revenue and $89 billion from its data center unit. Total revenue rose 106% from a year earlier, with demand from data centers remaining the main growth engine.
Data center demand remained the key driver
The company said data center revenue increased 18% from the previous quarter and 117% year over year. That performance pointed to continued expansion in AI infrastructure buildout.
CEO Jensen Huang said AI has reached an inflection point and is turning into profitable computing demand. NVIDIA also said deployment of chips based on the Blackwell Ultra architecture is accelerating, while hyperscalers continue to spend on next-generation hardware.
Data center networking revenue rose 138% from a year earlier, adding to signs that demand across the broader AI hardware ecosystem remains strong.
EPS came in at $2.22, with gross margin at 75%
On profitability, NVIDIA reported non-GAAP earnings per share of $2.22. Gross margin held at 75%.
The company said both GAAP and non-GAAP gross margin reached 75% in the second quarter, higher than a year earlier. Net income rose sharply, helping lift EPS by 111.4% year over year.
NVIDIA returned $26 billion to shareholders during the quarter through stock repurchases and cash dividends. It also said it still has $99 billion available under its current buyback authorization.
Third-quarter guidance set at about $108 billion
For the third quarter of fiscal 2027, management guided for revenue of about $108 billion, plus or minus 2%, and said gross margin is expected to be around 74%.
The company noted that this outlook does not include data center computing revenue from the China market. NVIDIA also disclosed that supply commitments have climbed to $279 billion, indicating a large backlog that could support future revenue.
CFO says fiscal 2028 revenue will grow another 70%
Looking ahead, NVIDIA's CFO said revenue in fiscal 2028 will grow another 70%. The company also said Blackwell Ultra has become an important engine for revenue growth.
After the earnings release, NVDA rose more than 4% in after-hours trading. At the time of writing, the stock was quoted at $219.4.