Nvidia Earnings Reinforce Bullish Outlook
Nvidia earnings confirmed record revenue and raised near-term guidance, prompting traders to weigh growth versus margin guidance and repurchases.
KEY TAKEAWAYS
- Nvidia reported Q2 fiscal 2027 revenue of $96.2 billion, a record quarter.
- Management guided Q3 revenue to about $108.0 billion and gross margin to 74.0% ±50 bps.
- Management flagged near-term margin headwinds from Hopper mix and China exclusion; returned about $26.0 billion.
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Nvidia reported results on Sept. 5, 2026, delivering a record quarter and raising Q3 revenue guidance, the company said, strengthening the growth outlook even as management flagged near-term margin headwinds.
Quarter Results and Guidance
Nvidia said in a Sept. 5 press release that it posted Q2 fiscal 2027 revenue of $96.2 billion for the quarter ended July 26, 2026, up 18% sequentially and 106% year over year. GAAP and non-GAAP gross margins were both 75.0%. GAAP earnings per share (EPS) were $2.46, and non-GAAP EPS was $2.22. Operating income reached $63.7 billion, with net income of $59.7 billion on a GAAP basis. The company set Q3 guidance for revenue at about $108 billion and gross margin at 74.0%, plus or minus 50 basis points.
Margins and Shareholder Returns
Operating expenses rose 55% year over year to $8.4 billion in the quarter. A transcript summary of management remarks noted that current Hopper shipments are dilutive to corporate gross margins and that the forward outlook excludes China data-center compute revenue due to geopolitical uncertainty. Nvidia returned about $26 billion to shareholders through share repurchases and dividends. The company also announced a quarterly cash dividend of $0.25 per share, payable Oct. 1, 2026, to holders of record on Sept. 10, 2026.
The strong revenue growth and raised guidance reinforce a growth-led narrative driven by AI demand. However, management’s comments on product-mix dilution and the exclusion of China compute revenue, combined with sharply higher operating expenses, suggest near-term margin volatility. This mix of sustained capital returns and margin pressure could influence investor views on Nvidia’s profit trajectory.
