Nvidia Q2 Fiscal 2027 Results Blow Past Estimates as Data Centre Revenue Doubles

Nvidia’s Q2 fiscal 2027 results landed well above analyst consensus on every headline metric, with revenue of $96.2 billion — up 106% from a year ago and 18% from the prior quarter — against a consensus expectation of $92.2 billion from analysts polled by the London Stock Exchange Group (LSEG).

Non-GAAP diluted earnings per share came in at $2.22, while GAAP diluted EPS reached $2.46. Both figures exceeded the $2.09–$2.10 consensus range, continuing a run that has become almost routine for the company.

Data Centre Revenue Drives Nvidia Q2 Fiscal 2027 Beat

The engine behind the quarter was, again, the data centre segment. NVIDIA’s data centre revenue reached $89.0 billion for the quarter, up 117% year-on-year and representing approximately 92% of total company revenue. The Blackwell Ultra product mix was credited with driving gross margin expansion: GAAP gross margin rose to 75.0% from 72.4% in Q2 fiscal 2026.

For context on that margin comparison: the prior-year period was burdened by a $4.5 billion charge associated with H20 excess inventory and purchase obligations. The H20 drag is now behind the company, though inventory provisions of $985 million still weighed on Q2 fiscal 2027 gross margin by 0.8 percentage points, according to the company’s 10-Q filing.

Fiscal 2028 Guidance Is the Number the Market Is Pricing

Reported numbers were always likely to be secondary to the forward outlook. On the earnings call, chief financial officer Colette Kress said customer forecasts ‘point to our growth doubling next year,’ and indicated that Nvidia expects fiscal 2028 revenue growth of 70%. Analysts had been modelling 44%. The gap between those two figures is, by any measure, the headline from the session.

Kress noted that the guidance reflects supply constraints rather than demand weakness — a framing that matters, because it shifts investor attention toward whether production ramps as planned rather than whether orders hold up. The full earnings call transcript is available on the NVIDIA investor relations site.

Shares in NVDA had already gained 11.8% in 2026 through to 24 August, with most of that recovery coming since April after the stock fell below $165 in late March amid Middle East-related market pressures.

Capital Returns and New Commitments Signal Confidence

NVIDIA returned approximately $26.0 billion to shareholders during the quarter through share repurchases and cash dividends, leaving approximately $99.0 billion remaining under its buyback authorisation. The next quarterly cash dividend of $0.25 per share is payable on 1 October 2026 to shareholders of record on 10 September 2026.

Beyond the quarterly financials, two subsequent disclosures are shaping the longer investment thesis. On 17 August 2026, NVIDIA filed an 8-K disclosing a partnership with SB Energy Corp. to develop the PORTS Technology Campus in Pike County, Ohio. The company entered into residual value guaranties relating to leases for approximately 4.25 gigawatts of IT load at the site, with an option to provide credit support for approximately an additional 3.8 gigawatts at its sole discretion.

Then, on 2 September 2026, NVIDIA filed an 8-K confirming a definitive agreement to acquire Hugging Face for approximately $11.9 billion, payable to Hugging Face stockholders, plus an equity-based retention programme of up to approximately $1.0 billion for Hugging Face employees joining the company. The transaction is expected to close in the first half of 2027, subject to regulatory approvals. Hugging Face is the dominant open-source AI model repository; bringing it inside NVIDIA’s ecosystem would tighten the company’s grip on the full stack from silicon to software.

On the infrastructure side, Reuters reported that NVIDIA and Amazon Web Services will deploy an additional 2 million Nvidia graphics processors across Amazon’s global infrastructure in 2027 and 2028, providing a concrete demand signal that sits behind the fiscal 2028 revenue growth projection.

The concerns that Wealth Club’s Susannah Streeter flagged ahead of the print — backlash against data centre construction, questions over AI return on investment, and the advance of Chinese chip rivals — have not disappeared. But a quarter in which data centre revenue more than doubled year-on-year and forward guidance came in 26 percentage points above analyst expectations leaves little room for the bear case in the near term.

The next test arrives on 17 November 2026, when NVIDIA is scheduled to report Q3 fiscal 2027 results. By then, the supply-constrained framing of the fiscal 2028 guidance will either have been validated by production ramps or will face its first serious scrutiny.