NVIDIA announced its financial results for the second quarter of fiscal 2027 (ended July 26, 2026), once again achieving record quarterly revenue.
Jensen Huang, Founder and CEO of NVIDIA, stated that artificial intelligence (AI) has reached an inflection point, is performing useful work, and that tokens are both efficient and profitable. Now, compute equals revenue, and demand is accelerating. We are now entering a golden age for new AI labs and startups, with multiple frontier labs scaling in parallel, a thriving open-model ecosystem, and the launch of physical AI. Furthermore, AI infrastructure construction is in full swing, with the Vera Rubin platform now in full mass production, built precisely for this moment.
The financial report shows that in the second quarter of fiscal 2027, NVIDIA's revenue was $96.221 billion, up 106% year-over-year and 18% quarter-over-quarter; net income was $59.688 billion, up 126% year-over-year and 2% quarter-over-quarter. Among these, Data Center business revenue reached a record $89 billion, accounting for over 92% of total revenue, up 117% year-over-year and 18% quarter-over-quarter. Edge Computing business revenue was $7.2 billion, up 27% year-over-year and 13% quarter-over-quarter. Additionally, NVIDIA's gross margin was 75.0%, an increase of 2.5 percentage points compared to 72.5% in the same period last year, and an increase of 0.1 percentage points compared to 74.9% in the previous quarter.
Starting from the previous fiscal quarter, NVIDIA adopted a new reporting framework, dividing its operations into two major market platforms: Data Center and Edge Computing, to more clearly reflect the company's current and future growth drivers. In simple terms, the former Gaming, Visualization, and Automotive businesses have been merged together. This also reflects the changes in NVIDIA's overall revenue structure in recent years, as the gaming business is no longer the core growth engine.
In the second quarter of fiscal 2027, NVIDIA returned a record approximately $26 billion to shareholders through stock repurchases and cash dividends. As of the end of the second quarter, the company had $99 billion remaining in its stock repurchase authorization. NVIDIA will pay its next quarterly cash dividend of $0.25 per common share to all shareholders of record on October 1, 2026.
Looking ahead to the third quarter of fiscal 2027, NVIDIA expects revenue to continue climbing, surpassing the $100 billion mark to reach $108 billion, with a +/- 2% fluctuation. This outlook does not include data center business revenue from China. Additionally, the GAAP gross margin is projected at 74.0%, with a fluctuation of 50 basis points.