Nvidia net income more than doubles to $59.7bn as revenue climbs 106%

Nvidia reported GAAP net income of $59.7bn for the second quarter of fiscal 2027, ended 26 July 2026, up 126% from $26.4bn a year earlier.

GAAP diluted earnings per share rose 128% to $2.46 from $1.08. Revenue reached $96.2bn, up 106% from $46.7bn in the corresponding quarter of fiscal 2026. GAAP operating income increased 124% to $63.73bn from $28.44bn.

GAAP gross margin was 75%, an increase of 2.6 percentage points from 72.4% a year earlier. GAAP operating expenses rose 55% to $8.41bn from $5.41bn.

On a non-GAAP basis, net income was $53.95bn, up 118% from $24.76bn. Non-GAAP diluted earnings per share increased 120% to $2.22 from $1.01.

Non-GAAP operating income rose 124% to $63.96bn from $28.54bn, while non-GAAP operating expenses increased 54% to $8.23bn from $5.36bn. The non-GAAP gross margin was 75.0%, 2.5 percentage points higher than 72.5% a year earlier.

The company returned about $26.0bn to shareholders during the quarter through share buybacks and cash dividends. Approximately $99.0bn remained available under its share repurchase authorisation at the close of the period.

For the third quarter of fiscal 2027, Nvidia guided to revenue of $108.0bn, plus or minus 2%, and said the forecast assumes no Data Center compute revenue from China.

GAAP and non-GAAP gross margins are both expected at 74.0%, plus or minus 50 basis points. GAAP operating expenses are projected at about $9.2bn and non-GAAP operating expenses at about $9.0bn.

By segment, Data Center revenue was $89.0bn, up 117% year on year. Edge Computing revenue was $7.2bn, up 27% year on year.

Within the Data Center business, Nvidia said its Vera Rubin platform is ramping into full production, with racks operating at partners including CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius.

It also said Spectrum-6 switch systems are arriving across the world’s gigascale AI factories, introduced the Vera CPU for AI agents, moved the Groq 3 LPX inference accelerator into full production and launched the DSX platform for AI factory buildouts.

The company said it had agreed strategic partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to create independent compute financing platforms intended to mobilise more than $500bn of third-party capital over time, subject to definitive agreements.

Other disclosures included a deployment of Vera CPUs by SpaceXAI, a partnership with SB Energy for land, power and shell capacity at the PORTS-Pike Technology Campus in Ohio, and a multiyear memory technology agreement with SK hynix.

The company also cited sovereign AI infrastructure partnerships in Korea with SK Telecom, NAVER and Brookfield, a national AI infrastructure project with the Japanese government, and 35 new AI HPC supercomputers in development across Europe.

In Edge Computing, Nvidia announced a Windows PC partnership with Microsoft based on the RTX Spark superchip and the DGX Station for Windows. The company also introduced optimisations for open models, including DeepSeek v4 Flash, Diffusion Gemma, Nemotron 3.5 Lightning, and Qwen 3.8.

In addition, Nvidia expanded the DRIVE Hyperion platform ecosystem with Foxconn, VinFast, Uber, and HUMAIN.

It also introduced Alpamayo 2 Super for autonomous vehicle development, Cosmos 3 for physical AI, the Isaac GR00T Reference Humanoid Robot and Halos for Robotics.

Nvidia founder and CEO Jensen Huang said: “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.

“And demand is accelerating. This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the US and around the world.

“The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment.”

Separately, Amazon Web Services (AWS) and Nvidia announced an expansion of their collaboration. Under this, they plan to deploy two million additional Nvidia GPUs across AWS infrastructure in 2027 and 2028.

The two companies also plan to bring Vera CPU-based infrastructure to AWS, extend NVLink Fusion with custom Nvidia high-bandwidth memory, and build AI factories for the US government, including 100,000 GPUs on secure AWS infrastructure for federal and national-security workloads.

Further work covers integrating the Nvidia platform with the AWS Nitro System and Elastic Fabric Adapter, alongside continued support for Nemotron open models on Amazon Bedrock and Amazon SageMaker. It also includes accelerating data processing and vector indexing on Amazon EMR and Amazon OpenSearch using cuDF and cuVS CUDA-X libraries, as well as the adoption of Nvidia’s physical AI platform by Amazon Robotics.

In a further development, The Information reported on Wednesday, citing a person with knowledge of the deal, that Nvidia has reportedly agreed to acquire Hugging Face, a repository of open-source AI models and datasets, for $12.9bn.