NVIDIA beats, guides $108 billion with zero China, and calls for 70% growth in fiscal 2028

SentiSense Original · Live · Published Aug 26, 2026, 4:49 PM ET · Updated Aug 26, 2026, 7:22 PM ET · AI-assisted, editor-reviewed

NVIDIA beat on both lines for Q2 FY2027 (revenue $96.2 billion, up 106% year over year; non-GAAP EPS $2.22) and guided Q3 to $108.0 billion with zero China Data Center revenue assumed. The night's real headline came on the call: CFO Colette Kress guided fiscal 2028 revenue growth to approximately 70%, far above the roughly 44% analysts modeled, and called even that a supply-constrained outlook. Shares fell about 4% in early after-hours trading, then reversed to a gain of more than 4% as the guidance landed. Gross margin is expected to trough at 71 to 72% in fiscal Q4 on surging memory costs.

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. The tape initially followed the pattern in our earnings-reaction data: NVDA had closed lower the day after each of its last four reports (-0.8%, -3.2%, -5.5%, -1.8%), and the stock fell roughly 4% in the first half hour after the print. Then the call flipped it.

The reversal traces to one line. CFO Colette Kress told analysts NVIDIA expects revenue to grow approximately 70% in fiscal 2028, against a consensus near 44%, and described that as a supply-constrained outlook ; Jensen Huang added that demand runs well above the supply the guide assumes . The call carried the quarter's other real disclosures: gross margin is expected to trough at 71 to 72% in fiscal Q4 on memory costs Kress described as extreme and still rising, supply commitments more than doubled to $279 billion (primarily memory procurement), AWS plans to deploy 2 million NVIDIA GPUs and adopt the Vera CPU, and top-five hyperscaler capital spending is projected to reach $1.3 trillion next year . On the $500 billion financing platforms, Kress took the circularity question head-on, describing a take-or-pay structure in which NVIDIA guarantees minimum revenue on a portion of a facility's capacity in exchange for a share of rental revenue . By early evening the stock traded near $218, up more than 4% after hours.

What to watch from here: whether tomorrow's close breaks the four-report negative streak (the after-hours reversal suggests it may), the margin path into the fiscal Q4 trough, and how much of the memory cost surge NVIDIA can pass through. A print this strong selling off first and re-rating on forward guidance says the market is pricing the buildout's duration, not the quarter.

Timeline

UPDATE · Aug 26, 7:22 PM ET

Earnings call ends with the night's real headline: CFO Colette Kress guided fiscal 2028 revenue growth to approximately 70%, far above consensus near 44%, and called it a supply-constrained outlook; Jensen Huang said demand runs well above that supply . NVDA reversed from a roughly 4% after-hours decline to a gain of more than 4%, near $218 by early evening. Also disclosed on the call: gross margin troughing at 71 to 72% in fiscal Q4 on memory costs described as extreme, supply commitments more than doubled to $279 billion, AWS deploying 2 million NVIDIA GPUs and adopting the Vera CPU, and a take-or-pay minimum-revenue structure behind the $500 billion financing platforms .

INITIAL · Aug 26, 4:49 PM ET

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.

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