NVIDIA reported fiscal second-quarter 2027 revenue of $96.2 billion on Aug. 26, beating analyst expectations as demand for artificial intelligence infrastructure continued expanding at an extraordinary pace.
NVIDIA Revenue Beats Estimates as Data Center Sales Surge
Revenue for the quarter ended July 26 increased 18% from the preceding quarter and 106% from one year earlier. Visible Alpha analysts had expected approximately $92.2 billion. NVIDIA's Data Center business generated $89 billion, rising 18% quarter over quarter and 117% year over year, surpassing the Visible Alpha estimate of roughly $85.7 billion. Non-GAAP diluted earnings reached $2.22 per share, compared with analyst expectations near $2.09. GAAP net income more than doubled to $59.7 billion.
Both GAAP and non-GAAP gross margins were 75%. NVIDIA returned approximately $26 billion through share repurchases and dividends during the quarter. The results arrive as Bitcoin mining companies increase spending on AI infrastructure, with nine public miners spending $5.11 billion on capital assets during the first half of 2026. This AI infrastructure boom is driving crypto-adjacent businesses, as seen with USDC powering 99.3% of x402 AI agent payments.
$108 Billion Outlook Excludes China Compute Sales
NVIDIA projected fiscal Q3 revenue of $108 billion, plus or minus 2%, exceeding the approximately $104.2 billion consensus estimate. The company expects both GAAP and non-GAAP gross margins of 74%, plus or minus 50 basis points. Its outlook assumes no Data Center compute revenue from China, reflecting continuing restrictions and uncertainty surrounding sales of advanced AI processors. NVIDIA shares initially fluctuated following the release but later rose approximately 4.1% in extended trading.
CFO Colette Kress said customer forecasts point to NVIDIA's growth doubling next year, but the company expects approximately 70% growth because available supply may not satisfy all forecast demand. The 70% figure is management's fiscal 2028 expectation, not a guaranteed result. Customer forecasts also represent demand indications rather than binding revenue commitments. The AI-driven growth is also benefiting crypto networks, as Solana activity hit record highs partly driven by AI-related DeFi applications.
Supply Commitments Rise to $279 Billion
NVIDIA's supply and capacity commitments increased from $119 billion in the preceding quarter to $279 billion as of July 26. Its 10-Q filing attributed the increase mainly to memory and manufacturing capacity required for current and future products. The commitments include $92 billion due during the remainder of fiscal 2027, $87 billion in fiscal 2028 and $88 billion in fiscal 2029. Total future commitments of $366 billion cover supply, cloud services, leases, equity investments and capital expenditure.
Crypto-linked infrastructure providers are participating in this expansion. IREN signed a $3.4 billion NVIDIA contract covering managed GPU cloud services over five years. NVIDIA's Vera Rubin platform entered full production, with systems running at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius. The company also announced partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR intended to mobilize more than $500 billion for AI infrastructure. The initiative remains subject to definitive agreements and therefore does not represent secured funding.
