Nvidia (1NVDA) Q2 2027 Earnings Report

The call was strongly positive on demand, product ramps and strategic partnerships — record revenue ($96B), robust data center growth (+18% Q/Q), major customer commitments (AWS, OpenAI) and rapid Vera Rubin production. At the same time, significant near-term operational headwinds persist: supply constraints limiting fulfilled demand, sharp memory price inflation pressuring gross margins (guidance down to mid-low 70%s), rising operating expenses, and sizable capital commitments to AI labs that increase balance-sheet exposure. Overall the company emphasized strong secular tailwinds and execution confidence while acknowledging margin and supply bottlenecks in the near term.

NVIDIA guided third-quarter fiscal‑2027 revenue of $108 billion ±2% and said Vera Rubin will account for about 20% of data‑center sales in Q3, while forecasting fiscal‑2028 revenue growth of approximately 70% year‑over‑year (supply‑constrained). They expect Q3 GAAP and non‑GAAP gross margins of 74% ±50 basis points, with margins bottoming in Q4 at 71–72% and settling at 72–73% in fiscal‑2028 as price increases take effect; Q3 operating expenses are expected to be about $9.2 billion (GAAP) and $9.0 billion (non‑GAAP) and full‑year OpEx to grow in the low‑50s percent. Other guidance/metrics included a fiscal‑2027 effective tax rate of 16–18%, inventory of $32 billion, days sales outstanding of 60, and the company noted Q2 return of $26 billion to shareholders ($20 billion repurchases, $6 billion dividend of $0.25/share) and that memory cost inflation is pressuring margins.