NVIDIA beats across the board and guides to $108 billion with zero China revenue assumed

SentiSense Original · Live · AI-assisted, editor-reviewed

NVIDIA beat on both lines for Q2 FY2027: revenue of $96.2 billion (up 106% year over year) against roughly $92.2 billion expected, and non-GAAP EPS of $2.22 versus about $2.10 modeled. Data Center revenue hit $89.0 billion, up 117%. Guidance was stronger still at $108.0 billion for Q3, above the $104 billion consensus, with zero China Data Center compute revenue assumed. Despite the beat, the stock traded slightly below its close in early after-hours action, consistent with four straight negative next-day reactions to earnings.

NVDA reported second-quarter fiscal 2027 revenue of $96.2 billion, up 18% from the prior quarter and up 106% from a year ago, with non-GAAP earnings of $2.22 per diluted share and GAAP earnings of $2.46 . Both lines cleared Wall Street's bar comfortably: analysts had modeled roughly $2.10 in adjusted EPS on about $92.2 billion in revenue . Data Center revenue reached $89.0 billion, up 117% from a year ago, and gross margin held at 75.0% .

The guide was the bigger statement. NVIDIA expects third-quarter revenue of $108.0 billion, plus or minus 2%, against a consensus near $104 billion, and the outlook explicitly assumes no Data Center compute revenue from China, leaving any China sales as pure upside . Guided gross margin steps down slightly to about 74.0%. "Now, compute is revenue," said founder and CEO Jensen Huang, pointing to the Vera Rubin platform reaching full production with racks running at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius .

Beyond the quarter, NVIDIA disclosed partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to establish independent compute financing platforms intended to mobilize over $500 billion of third-party capital for AI infrastructure over time, subject to definitive agreements . The company returned $26.0 billion to shareholders in the quarter and retains roughly $99 billion of buyback authorization .

SentiSense data showed positioning into the print was one-way bullish: the SentiSense Score on NVDA read Strong Bullish, the stock ranked first in social dominance across our tracked universe, and options put/call volume sat near the bottom of its one-year range as of Monday's close. Yet in the first hour of after-hours trading the stock hovered slightly below its $209.66 close. That muted tape echoes a pattern in our earnings-reaction data: NVDA closed lower the day after each of its last four reports, with next-day moves of -0.8%, -3.2%, -5.5% and -1.8%.

What to watch from here: whether tomorrow's close breaks that four-report streak, management's call commentary on China and on the financing platforms, and the margin path implied by the 74% guide. A blowout print meeting a flat tape is itself information; it may signal that expectations, not results, are the binding constraint on the stock from here.