NVIDIA Corp (NVDA) 10-Q 2026: AI Summary

Summary

Full summary

The Print

positive

NVIDIA reported Q2 FY2027 revenue of $96.2B, up 106% YoY, with net income of $59.7B and diluted EPS of $2.46.

Revenue more than doubled YoY and grew 18% sequentially, with gross margin expanding 2.6 percentage points to 75.0%.

Revenue increased 106% YoY to $96.2B, driven by the ramp of Blackwell Ultra infrastructure.
Net income rose 126% YoY to $59.7B, with diluted EPS of $2.46.
Data Center revenue grew 117% YoY to $89.0B, led by hyperscale and AI cloud demand.

Results That Matter

Financial highlights: current period, prior period, change, and investor takeaway per metric
Metric	Current Period	Prior Period	Change	Investor Takeaway
Revenue	$96.2B	$46.7B	+106.0%	Driven by the ramp of Blackwell Ultra infrastructure.
Operating income	$63.7B	$28.4B	+124.3%	Growth in revenue, partially offset by higher operating expenses.
Operating margin	66.2%	60.8%	+5.4 ppts	Improved gross margin from Blackwell Ultra mix, partially offset by higher operating expenses.
Diluted EPS	$2.5	$1.1	+127.8%	Higher net income, partially offset by a slight increase in diluted shares.

Earnings Quality & Cash Conversion

Reported net income includes $7.8B of gains from equity securities, net, which are largely unrealized and non-operating. Excluding these gains, operating performance remains strong, with operating income of $63.7B.

Value Drivers & Capital Allocation

Capital returned — dividends paid $6.0B (prior $244.0M).

The company is aggressively returning capital to shareholders through share repurchases and dividends, funded by strong operating cash flow and a $25B debt issuance. The board approved an additional $80B repurchase authorization and increased the quarterly dividend from $0.01 to $0.25 per share.

Return on equity was 26.1% (prior 26.4%); return on assets 18.6%.

Board approved an additional $80.0B share repurchase authorization on May 18, 2026, bringing total authorization to $99.3B.
Quarterly cash dividend increased from $0.01 to $0.25 per share.

Forward Signals

positive

No specific financial guidance was provided in the filing.

Known trends

Supply constraints for Blackwell and Rubin systems are expected to continue.
Export controls and licensing requirements may limit sales to China and other markets.

Subsequent events

In August 2026, NVIDIA entered into guarantees with SB Energy Corp. capped at $105B to support a data center buildout for OpenAI.

“We believe AI clouds and AI model makers have significant demand for training and inference compute and currently lack the ability to secure long-term infrastructure contracts and investment-grade financing capacity to secure the AI infrastructure necessary to grow.”
— Management

Risks

No risk factors found

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Segments

Segment	Revenue	Operating Income	Change	Commentary
Compute & Networking	$88.3B	$62.7B	+113.6%	92% of segment revenue, 71% operating margin — Revenue growth driven by the ramp of Blackwell Ultra infrastructure.
Graphics	$7.9B	$3.9B	+46.4%	8% of segment revenue, 49% operating margin — Revenue growth driven by sales of the Blackwell architecture.

Balance Sheet & Liquidity

Leverage: Total debt of $33.4B (net carrying amount) versus cash and marketable securities of $99.4B; net cash position remains strong.

Liquidity: Cash, cash equivalents, and marketable debt securities totaled $56.6B, with an additional $42.8B in marketable equity securities. Management believes liquidity is sufficient for at least the next 12 months.

Working capital: Current assets $197.4B vs. current liabilities $43.0B (current ratio 4.59x). A year earlier: $125.6B vs. $32.2B (3.91x).

Maturities & covenants

Debt maturities: $1.0B due in one year, $15.0B due in one to five years, $7.5B due in five to ten years, and $10.0B due in greater than ten years.
The company was in compliance with all debt covenants as of July 26, 2026.

Notable Footnotes

Item	Impact
Commitments and Contingencies - Supply and capacity commitments increased to $279B from $119B last quarter.	Significant future cash obligations to secure supply for data center products.
SB Energy Corp. guarantees - Capped at $105B to support OpenAI's data center buildout.	Potential material financial exposure if OpenAI defaults on lease obligations.

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AI-generated. Informational only, not investment advice. May be incomplete or contain errors. The authoritative source is always the original SEC filing.