Nvidia Third-Quarter Revenue Outlook Reaches $108 Billion

Companies

• NVDA

Article body

Nvidia (NVDA) said it expects third-quarter fiscal 2027 revenue of $108.0 billion, plus or minus 2%, after reporting a record $96.2 billion in the quarter ended July 26, 2026. [1][2]

The sequential sales pace slowed. Revenue rose 18% from the prior quarter, after a 20% sequential increase in the first quarter, and was up 106% from a year earlier, after 85% year-over-year growth in the prior period. [1][2][3][4] The company is not assuming any Data Center compute revenue from China in the third-quarter outlook. [2]

Data Center revenue was a record $89.0 billion, up 18% sequentially and 117% from a year ago, after $75.2 billion in the first quarter that was up 92% from a year earlier. [1][2][5][3] The company said the increase was driven by the ramp of Blackwell Ultra infrastructure. [6] Hyperscale revenue was $48.7 billion, up 13% sequentially and 102% from a year ago. AI Clouds, Industrial, & Enterprise revenue was $40.3 billion, up 25% sequentially and 138% from a year ago, which the company attributed to end demand from AI natives, enterprises, sovereign customers, and hyperscalers using AI clouds. [5][6] Shipments of Data Center Hopper products to China were less than 1% of Data Center revenue. [6]

Edge Computing revenue was $7.2 billion, up 13% sequentially and 27% from a year ago. The company said the increase was driven by strong sales of Blackwell workstations, partially offset by slower consumer PC sales tempered by elevated memory and systems prices. [7][5][6]

GAAP and non-GAAP gross margins were both 75.0%, up 2.6 and 2.5 points from a year ago and roughly unchanged sequentially. The company said margins increased from a year ago on improved mix from Blackwell Ultra and were approximately flat sequentially as Blackwell remains the vast majority of revenue. [2][5][4] GAAP operating expenses were $8.4 billion, up 10% sequentially and 55% from a year ago. GAAP operating income was $63.7 billion, up 19% sequentially and 124% from a year ago. GAAP net income was $59.7 billion, up 2% sequentially and 126% from a year ago, and GAAP diluted earnings were $2.46 a share. Non-GAAP net income was $54.0 billion and non-GAAP diluted earnings were $2.22 a share. [2][5][4]

GAAP other income, net, included $7.8 billion of net gains from equity securities. [6] The company returned approximately $26.0 billion to shareholders in the quarter through share repurchases and cash dividends, versus approximately $20.0 billion in the first quarter. Remaining share-repurchase authorization was about $99.0 billion. The next quarterly cash dividend is $0.25 a share, payable October 1, 2026. [1][3]

Supply and capacity commitments increased from $119 billion last quarter to $279 billion, primarily related to the procurement of memory. [8] In August 2026, Nvidia entered into guarantees to provide credit support on land, power, and shell buildout to secure approximately 4.25 gigawatts at SB Energy’s PORTS-Pike Technology Campus in Ohio, with guarantee obligations capped at a total of $105 billion. [9] The company also announced partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to mobilize over $500 billion of third-party capital for AI-infrastructure buildout over time, subject to definitive agreements. [10]

For the third quarter, GAAP and non-GAAP gross margins are expected to be 74.0%, plus or minus 50 basis points, and GAAP and non-GAAP operating expenses are expected to be approximately $9.2 billion and $9.0 billion, respectively. [2] Founder and CEO Jensen Huang said demand is accelerating and that Vera Rubin, now in full production, was built to power the current buildout. [1]

Citations

citations[10]{marker,ticker,item,date,accession,source}:
  1,NVDA,ex_99_1,2026-08-26,0001045810-26-000073,filing
  2,NVDA,ex_99_1,2026-08-26,0001045810-26-000073,filing
  3,NVDA,ex_99_1,2026-08-26,0001045810-26-000073,filing
  4,NVDA,ex_99_1,2026-08-26,0001045810-26-000073,filing
  5,NVDA,ex_99_1,2026-08-26,0001045810-26-000073,filing
  6,NVDA,ex_99_1,2026-08-26,0001045810-26-000073,filing
  7,NVDA,ex_99_1,2026-08-26,0001045810-26-000073,filing
  8,NVDA,ex_99_1,2026-08-26,0001045810-26-000073,filing
  9,NVDA,ex_99_1,2026-08-26,0001045810-26-000073,filing
  10,NVDA,ex_99_2,2026-08-26,0001045810-26-000073,filing