NVIDIA Corp
NVDA10-Q,quarter ended Jul 26, 2026,filed Aug 26, 2026,Original on SEC.gov (opens in a new tab)
4 of 4 checkable figures match the filing, 3 of 4 risk excerpts located in the filing text, 1 withheld
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The Print
NVIDIA reported second-quarter fiscal 2027 revenue of $96.2B, up 106% from $46.7B a year earlier, with net income of $59.7B and diluted EPS of $2.46.
Revenue increased 106% YoY to $96.2B and 18% sequentially, which management attributes to data center products for accelerated computing and AI solutions, with Blackwell accounting for the majority of system shipments. Gross margin rose 2.6 points YoY to 75.0% on improved mix from Blackwell Ultra and was approximately flat sequentially. Operating expenses rose 55% YoY, which management attributes to higher compute infrastructure and compensation and benefits costs. Net income of $59.7B included $7.8B of other income, net, driven by gains from equity securities, net.
- Revenue of $96.2B rose 106% YoY and 18% sequentially; Data Center revenue of $89.0B increased 117% YoY, which management attributes to the ramp of the Blackwell Ultra infrastructure.
- Gross margin was 75.0%, up 2.6 points YoY, which management attributes to improved mix from Blackwell Ultra; operating income of $63.7B rose 124% YoY.
- Net income of $59.7B included $7.8B of other income, net, of which $7.8B was gains from equity securities, net.
- Supply and capacity commitments increased from $119B last quarter to $279B as of July 26, 2026.
Results That Matter
- Revenue
- Current period
- $96.2B
- Prior period
- $46.7B
- Change
- +105.9%
Management attributes the increase to data center products for accelerated computing and AI solutions, with Blackwell accounting for the majority of system shipments. - Gross profit
- Current period
- $72.1B
- Prior period
- $33.9B
- Change
- +113.1%
Gross margin was 75.0% versus 72.4% a year earlier, which management attributes to improved mix from Blackwell Ultra. - Operating income
- Current period
- $63.7B
- Prior period
- $28.4B
- Change
- +124.1%
Operating margin was 66.2% versus 60.8% a year earlier. - Net income
- Current period
- $59.7B
- Prior period
- $26.4B
- Change
- +125.9%
Net margin was 62.0% versus 56.5% a year earlier; net income included $7,771M of gains from equity securities, net. - Net income per share - diluted
- Current period
- $2.46
- Prior period
- $1.08
- Change
- unavailable
Diluted weighted average shares were 24,285M versus 24,532M a year earlier. - Net income per share - basic
- Current period
- $2.47
- Prior period
- $1.08
- Change
- unavailable
Basic weighted average shares were 24,190M versus 24,366M a year earlier.
| Metric | Current Period | Prior Period | Change | Investor Takeaway |
|---|---|---|---|---|
| $96.2B | $46.7B | +105.9% | Management attributes the increase to data center products for accelerated computing and AI solutions, with Blackwell accounting for the majority of system shipments. | |
| $72.1B | $33.9B | +113.1% | Gross margin was 75.0% versus 72.4% a year earlier, which management attributes to improved mix from Blackwell Ultra. | |
| $63.7B | $28.4B | +124.1% | Operating margin was 66.2% versus 60.8% a year earlier. | |
| $59.7B | $26.4B | +125.9% | Net margin was 62.0% versus 56.5% a year earlier; net income included $7,771M of gains from equity securities, net. | |
| $2.46 | $1.08 | unavailable | Diluted weighted average shares were 24,285M versus 24,532M a year earlier. | |
| $2.47 | $1.08 | unavailable | Basic weighted average shares were 24,190M versus 24,366M a year earlier. |
What changed
Quarter over quarter, against the 10-Q for the quarter ended Apr 26, 2026.
Prior 10-QRevenue up 17.9%; Net income up 2.3%
| Metric | Prior | Current | Change | Read as |
|---|---|---|---|---|
| Revenue | $81.6B | $96.2B | +17.9% | Favorable |
| Net income | $58.3B | $59.7B | +2.3% | Favorable |
| EPS (diluted) | $2.39 | $2.46 | +2.9% | Favorable |
- Revenue+17.9%Prior $81.6B, current $96.2BFavorable
- Net income+2.3%Prior $58.3B, current $59.7BFavorable
- EPS (diluted)+2.9%Prior $2.39, current $2.46Favorable
▲ and ▼ show the direction of each change. Color and “Read as” show whether that direction is usually favorable for the metric.
Earnings Quality & Cash Conversion
Operating income of $63,734M includes stock-based compensation expense of $2,027M and inventory and excess inventory purchase obligation provisions of $985M, partly offset by a provision release of $177M; the net effect on gross margin was an unfavorable impact of 0.8%. Other income, net of $7,773M includes gains from equity securities, net of $7,771M, which the filing states were primarily driven by unrealized gains in equity securities. The filing does not define an adjusted or non-GAAP earnings total.
Red flag
Red flag
Red flag
Value Drivers & Capital Allocation
Capital returned — dividends paid $6.0B (prior $244.0M).
“Cash used in financing activities was flat in the first half of fiscal year 2027 compared to the first half of fiscal year 2026, mainly due to higher share repurchases, dividends, and a payment related to Groq, Inc. in the first half of fiscal year 2027, offset by higher cash proceeds from debt issuance.”
Filing statement
Return on equity was 26.1% (prior 26.4%) (period net income / period-end equity, not annualized); return on assets 18.6% (period net income / period-end assets, not annualized).
Forward Signals
The filing does not provide financial guidance for future periods.
Known trends
- We have significantly increased our supply and capacity commitments from $119 billion last quarter to $279 billion as of July 26, 2026 to meet future demand.
- Our next-generation Data Center architecture, Vera Rubin, began production shipments in the third quarter of fiscal year 2027. We will be shipping both Blackwell and Rubin systems in the future and are currently experiencing certain supply constraints.
- Financing arrangements with certain investment-grade customers, including extended payment terms under large, multi-quarter agreements, will continue to affect the timing of our operating cash flows.
Subsequent events
- In August 2026, we entered into guarantees with SB Energy Corp. to provide credit support on the land, power, and shell buildout at SB Energy's PORTS Technology Campus in Pike County, Ohio, covering leases for approximately 4.25 gigawatts of IT load, with our obligation capped at $105 billion in the aggregate.
- In August 2026, we entered into memorandums of understanding with several large capital providers to establish independent financing platforms designed to mobilize more than $500 billion of third-party capital over time to support the deployment of AI infrastructure.
“We believe that we have sufficient liquidity to meet our operating requirements for at least the next twelve months and for the foreseeable future, including our future obligations.”
NVIDIA Corporation
Risks
Excerpts are the filing’s own words; each heading is the start of its excerpt. Selected excerpts are not a complete risk inventory.
We have entered into guarantees with SB Energy relating to leases at the PORTS Technology Campus…
We have entered into guarantees with SB Energy relating to leases at the PORTS Technology Campus that may expose us to substantial obligations over extended periods.
During the first half of fiscal year 2027, we incurred a $0.4 billion charge associated with H200…
During the first half of fiscal year 2027, we incurred a $0.4 billion charge associated with H200 for excess inventory and purchase obligations, as the demand for H200 products diminished.
We are currently under examination by the Internal Revenue Service for our fiscal years 2023…
We are currently under examination by the Internal Revenue Service for our fiscal years 2023 and 2024.
3 of 4 excerpts located in the filing text · 1 withheld because the evidence could not be matched
Segments
| Segment | Revenue | Operating Income | Revenue Change | Commentary |
|---|---|---|---|---|
| Compute & Networking | $88.3B | $62.7B | +113.6% | 71% operating margin — Management attributes the year-over-year increase in the second quarter and first half of fiscal year 2027 to the ramp of the Blackwell Ultra infrastructure; the first-half increase also reflects the non-recurrence of a $4.5 billion charge associated with H20 excess inventory and purchase obligations in the first quarter of fiscal year 2026. |
| Graphics | $7.9B | $3.9B | +46.4% | 49% operating margin — Management attributes the year-over-year increase in the second quarter and first half of fiscal year 2027 to sales of the Blackwell architecture. |
Balance Sheet & Liquidity
Leverage: Identified debt as of 2026-07-26: reported debt balance of unestablished maturity scope of $32.4B. The concept behind this balance does not establish which maturities it covers. Total debt, net debt and debt-to-equity are therefore not stated.
Liquidity: Cash, cash equivalents, and marketable debt securities were $56,586M at July 26, 2026, plus $42,783M of marketable equity securities. The commercial paper program had a capacity of $25.0 billion with no amounts outstanding.
Working capital: Current assets $197.4B vs. current liabilities $43.0B (current ratio 4.59x). Prior reported balance sheet as of 2026-01-25: $125.6B vs. $32.2B (3.91x).
Maturities & covenants
- Aggregate debt maturities as of July 26, 2026 were $1,000M due in one year, $15,000M due in one to five years, $7,500M due in five to ten years, and $10,000M due in greater than ten years.
- As of July 26, 2026, we complied with the required covenants under the outstanding notes.
Notable Footnotes
| Item | Impact |
|---|---|
| Supply and capacity commitments | Supply and capacity commitments increased from $119 billion last quarter to $279 billion as of July 26, 2026, within total future commitments of $366 billion. |
| SB Energy Corp. guarantees | Guarantees capped at a total of $105 billion provide credit support on a land, power, and shell buildout for leases covering approximately 4.25 gigawatts of IT load; total maximum gross exposure related to guarantees was $108.5 billion. |
| Customer concentration | Five direct customers accounted for 22%, 14%, 13%, 11%, and 10% of the accounts receivable balance as of July 26, 2026; one direct customer represented 16% of total revenue in the second quarter of fiscal year 2027. |
| Deferred revenue | Deferred revenue additions of $17,709M in the first half of fiscal year 2027 included $15.6 billion of customer advances; the deferred revenue balance rose to $6,412M from $2,572M at the beginning of the period. |
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