Nvidia Reports Record $96.2 Billion Quarter, Guides First $100 Billion-Plus Revenue Quarter

Nvidia reported revenue of $96.2 billion for its fiscal second quarter ended July 26, more than double the year-earlier figure and above Wall Street's $92.1 billion estimate, the company said on August 26. Adjusted earnings came in at $2.22 per share versus the $2.09 consensus, and data center revenue reached $89 billion, with compute up 102% year over year and networking up 138%.

Guidance and Margins

Nvidia guided to fiscal Q3 revenue of about $108 billion, plus or minus 2%, which would mark its first quarter above $100 billion and came in ahead of the $103.9 billion analysts expected. Chief Financial Officer Colette Kress said the company expects revenue to grow roughly 70% in fiscal 2028 on a supply-constrained outlook, driven by customer forecasts pointing to demand doubling next year. The growth outlook rests on the Vera Rubin platform, which Nvidia said is now in full production alongside Blackwell Ultra shipments.

Memory Cost Squeeze

The one soft spot was gross margin. Nvidia guided Q3 gross margin to 74%, plus or minus 50 basis points, with Q4 expected to bottom at 71% to 72% before settling at 72% to 73% in fiscal 2028, down from Q2's 75%. Kress cited extreme pricing conditions in memory, saying price increases have exceeded prior expectations and are headed even higher into next year. Supply commitments swelled to $279 billion, largely tied to memory procurement for Vera Rubin, up about 135% sequentially.

Market Reaction

Nvidia shares surged 8.74% to $227.98 on August 27 following the report, lifting AMD, Intel, and memory-linked names such as SK Hynix and Samsung before profit-taking set in. Analysts at Bank of America Securities framed the earnings as evidence that memory, not compute, is now the binding constraint on AI infrastructure buildout.