One of the world's largest makers of computer chips, Nvidia designs the graphics processing units (GPUs) that power everything from PC gaming—its GeForce RTX cards bring ray tracing and AI upscaling to players—to the data centers running artificial intelligence, with customers like cloud providers and carmakers using its DRIVE platform for self-driving. It was founded in 1993 when three engineers sketched out their idea over coffee at a San Jose Denny's. Its name comes from the Latin "invidia," meaning envy—fittingly matched by its signature green logo, "green with envy."
Nvidia's Q2 FY2027 revenue rose 106% to $96.2B as Blackwell Ultra data center demand accelerated.
Data Center growth accelerated to 117% , the fastest pace in two years. Total revenue rose 106% to $96.2 billion and widened 2.6 points to 75.0% as the ramp lifted revenue 114%. The company is now carrying $32.4 billion in and $279 billion in supply commitments, leaving its balance sheet tied to the durability of AI infrastructure demand.
Key takeaways
Data Center reached $89.0 billion, up 117% , driven by the ramp of infrastructure.
rose 114% to $88.3 billion, while revenue rose 46% to $7.9 billion on Blackwell architecture sales.
widened to 75.0% from 72.4% a year ago on improved mix, with and purchase obligation provisions having a net unfavorable impact of 0.8 percentage points.
Section summaries
Management's Discussion and Analysis
Q2 FY2027 revenue rose 106% YoY to $96.2B, driven by Blackwell Ultra data center ramp.
⌄
Total was $96.2 billion, up 106% and 18% sequentially, with Data Center revenue of $89.0 billion up 117% year over year.
rose 114% to $88.3 billion, driven by the ramp of infrastructure, while revenue rose 46% to $7.9 billion on Blackwell architecture sales.
rose 55% to $8.4 billion, driven by a 127% increase in compute infrastructure costs and a 30% increase in compensation and benefits.
Supply and capacity commitments increased to $279 billion from $119 billion last quarter, and the company entered a $105 billion guarantee supporting an Ohio data center campus leased to OpenAI.
rose to $32.4 billion from $7.5 billion a year ago, and the company repurchased $19.7 billion of stock in the quarter.
What changed
The Q1 FY2027 watch item on Data Center growth after the 92% rise is settled: growth accelerated to 117% in Q2, the fastest since Q2 FY2024.
held at 75.0% sequentially, matching the 74.9% reported in Q1 FY2027, as the absence of the prior-year charge continued to support the comparison.
Supply and capacity commitments more than doubled from $119 billion to $279 billion in a single quarter, a change from the prior quarter's level and a new scale of forward obligation.
rose from $7.5 billion to $32.4 billion sequentially, a shift from the stable $7.5–8.5 billion range held since FY2023.
The risk factors now name a $4.9 billion cumulative and charge and a $25.0 billion program, both new disclosures since the FY2026 10-K.
What to watch
Q3 FY2027 Data Center growth rate after the 117% Q2 rise to see if demand sustains the acceleration.
Whether the $279 billion in supply and capacity commitments translates into or becomes an or purchase obligation charge.
The $105 billion guarantee supporting the Ohio data center campus leased to OpenAI, and whether OpenAI's performance triggers lease assumption obligations.
Sequential from 75.0% as mix evolves and any further are recorded.
increased to 75.0% from 72.4% a year ago on improved mix, though and purchase obligation provisions had a net unfavorable impact of 0.8 percentage points in the quarter.
Operating expenses rose 55% to $8.4 billion, driven by a 127% increase in compute infrastructure and a 30% increase in compensation and benefits.
Supply and capacity commitments increased to $279 billion as of July 26, 2026, up from $119 billion last quarter, and the company entered a $105 billion guarantee supporting an Ohio data center campus leased to OpenAI.
Cash, cash equivalents, and marketable debt securities totaled $56.6 billion, with $74.4 billion in for the first half, and the company repurchased $19.7 billion of stock in the quarter.
Quantitative and Qualitative Disclosures About Market Risk
Investment and Interest Rate Risk Financial market risks related to investment and interest rate risk are described in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended January 25, 2026. Our…
⌄
Investment and Interest Rate Risk
Financial market risks related to investment and interest rate risk are described in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended January 25, 2026.
Our marketable equity securities consist of publicly-held equity securities, while our non-marketable equity securities are investments in privately-held companies. Publicly-held equity securities are subject to market price volatility.
Non-marketable equity securities are measured based on cost minus impairment, if any, and are adjusted for observable price changes in orderly transactions for an identical or similar investment in the same issuer. Valuations of our non-marketable equity securities are inherently complex due to the lack of readily available market data and observable transactions, and impact of macroeconomic factors.
In the first half of fiscal year 2027, we made additional investments in publicly-held equity securities and non-marketable equity securities that are subject to these risks, which could have a material impact on the carrying value of our holdings.
For a description of our investments, refer to Notes 5 and 6 of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Foreign Exchange Rate Risk
The impact of foreign currency transactions related to foreign exchange rate risk is described in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended January 25, 2026. As of July 26, 2026, there have been no material changes to the foreign exchange rate risks described as of January 25, 2026.
Refer to Note 10 of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for a discussion of significant developments in our legal proceedings since January 25, 2026.
⌄
Refer to Note 10 of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for a discussion of significant developments in our legal proceedings since January 25, 2026.
NVIDIA flags escalating export-control, AI-infrastructure commitment, and debt risks for Q2 FY2027.
⌄
U.S. export controls have effectively foreclosed NVIDIA from China's data center market, with and charges totaling $4.9 billion and licensed H200 shipments under 1% of Data Center .
NVIDIA's capital commitments, guarantees, and AI cloud capacity-purchase agreements create multi-year financial exposure if customer demand or partner execution falls short.
Guarantees tied to SB Energy leases at the PORTS Technology Campus could force NVIDIA to assume long-term lease obligations if OpenAI fails to perform or becomes insolvent.
Regulators in the EU, U.S., U.K., China, and South Korea are conducting broad antitrust and competition inquiries into NVIDIA's GPU sales, supply allocation, and AI investments.
NVIDIA holds $33.5 billion in and a $25.0 billion , increasing vulnerability to refinancing risk and adverse credit conditions.
Pending U.S. legislation such as the GAIN AI Act and RASA could impose new export and cloud-service restrictions, while China's government actively discourages purchases of NVIDIA data center products.