What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Evaluate NVIDIA by separating what its latest financial statements say about the business from what investors may pay for its shares. In Q2 fiscal 2027, ended July 26, 2026, NVIDIA reported $96.221 billion in revenue, 75.0% GAAP gross margin, and $63.734 billion in GAAP operating income. Those results show extraordinary growth and profitability; they do not, by themselves, show whether the stock is attractively priced.
Start with reported results, not the share price
For a consistent starting point, use the latest reported quarter and its year-ago comparison. NVIDIA’s Q2 FY2027 ended July 26, 2026; the company released results on August 26 and filed its Form 10-Q on August 27. The figures below are company-reported results, not forecasts. See NVIDIA’s Q2 FY2027 earnings release and Form 10-Q.
As an Amazon Associate I earn from qualifying purchases.
| Measure | Q2 FY2027 result | Comparison |
|---|---|---|
| Revenue | $96.221 billion | Up 106% year over year and 18% sequentially |
| Data Center revenue | $89.0 billion | Up 117% year over year and 18% sequentially |
| GAAP gross margin | 75.0% | 72.4% in Q2 FY2026 |
| GAAP operating income | $63.734 billion | Up 124% year over year |
| Operating expenses | $8.408 billion | Up 55% year over year |
These metrics answer different questions. Revenue measures sales, gross margin shows the portion remaining after cost of revenue, and operating income reflects what remains after operating expenses as well. None is interchangeable with net income, cash flow, or a valuation measure.
How sustainable is NVIDIA’s revenue growth?
Check the source and concentration of growth
Data Center generated $89.0 billion of Q2 revenue, about 92% of the company’s $96.221 billion total. NVIDIA attributed the increase to the ramp of Blackwell Ultra infrastructure, with its filing also describing demand from hyperscale customers and AI Clouds, Industrial, and Enterprise customers. That mix makes total growth highly dependent on continued Data Center demand and delivery, rather than evenly spread across businesses.
#1 Best Overall
Look beyond the headline growth rate: compare segment contributions, product ramps, customer demand, and the prior-year comparison period. NVIDIA changed its revenue-by-market-platform presentation in Q1 FY2027 and recast comparable periods; it also reclassified a company from ACIE to Hyperscale in Q2. Use those recast categories when comparing platforms across periods, as described in the Form 10-Q.
Separate completed sales from future expectations
In its August 26, 2026 release, NVIDIA forecast Q3 FY2027 revenue of $108.0 billion, plus or minus 2%, and GAAP and non-GAAP gross margins of 74.0%, plus or minus 50 basis points. The company said this outlook assumed no Data Center compute revenue from China. These are management’s expectations, not Q3 results or a guarantee. The release identifies forward-looking statements as subject to risks and uncertainties.
On the August 26 earnings call, management described supply as a bottleneck through at least the end of FY2028, cited expected memory pricing pressure, and gave a preliminary expectation of approximately 70% year-over-year revenue growth for FY2028. Treat these as dated management commentary, not established outcomes; the earnings release and call transcript provide the company’s outlook context.
Recommended Free Tools
Weigh the execution risks
Growth can be affected by constraints and timing as well as demand. NVIDIA’s filing discusses risks including inaccurate demand estimates, production delays, supply-and-demand management, inventory provisions, lower yields, higher material and warranty costs, customers postponing purchases, capital constraints, and slower adoption than expected. It reported $279 billion in supply and capacity commitments as of July 26, 2026, up from $119 billion the prior quarter. A commitment is not equivalent to revenue recognized or cash already spent.
Customer concentration also matters. One direct customer represented 16% of Q2 FY2027 revenue; three direct customers represented 16%, 15%, and 13% of first-half revenue. These are direct-customer figures, not an identification of ultimate end users. They show why it is useful to assess the dependence of sales on a limited set of buyers alongside aggregate growth.
What do NVIDIA’s margins say about the business?
Read gross margin as one layer
Gross margin is gross profit as a share of revenue, after cost of revenue but before operating expenses. NVIDIA’s Q2 FY2027 GAAP gross margin was 75.0%, compared with 72.4% a year earlier. A high gross margin indicates that a substantial share of sales remained after direct costs in that period; it does not mean the same share became net profit or cash.
Follow expenses through to operating income
Research and development, selling, general, and administrative costs reduce gross profit before operating income. In Q2 FY2027, operating expenses rose 55% year over year to $8.408 billion, while GAAP operating income increased 124% to $63.734 billion. Assess whether revenue growth is outpacing expense growth and whether that relationship persists across periods, rather than treating gross margin alone as a verdict on profitability.
The Tool Desk
Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Compare like accounting measures: GAAP with GAAP, or non-GAAP with non-GAAP. NVIDIA began including stock-based compensation expense in its non-GAAP measures starting Q1 FY2027, so non-GAAP comparisons that cross that change need context. The company’s release and filing detail the definitions and reported results.
Best Value
Does NVIDIA turn earnings into cash?
Use the correct cash-flow period
For the six months ended July 26, 2026, NVIDIA reported $74.421 billion in net cash provided by operating activities, compared with $42.779 billion in the first half of the prior fiscal year. This is a six-month figure, not Q2-only cash flow. The company attributed the increase to higher revenue, partially offset by increased accounts receivable associated with extended payment terms on large multi-quarter agreements with certain investment-grade customers.
That detail is important when judging earnings quality. Operating cash flow can support the picture of a profitable, growing business, but receivables and payment terms affect when reported sales become cash. Compare operating cash flow with net income over time and examine working-capital movements, especially receivables, rather than concluding that one rising cash-flow figure settles the question.
Distinguish cash generation from cash on hand
In the first half, investing activities used $35.124 billion and financing activities used $27.459 billion. NVIDIA also reported $56.586 billion in cash and cash equivalents plus marketable debt securities at July 26, 2026. That $56.586 billion is a point-in-time balance-sheet amount, not cash generated during the six-month period. Do not call operating cash flow “free cash flow” unless the calculation is defined and capital expenditures are included on a consistent, cited basis.
What these measures can—and cannot—tell you about the stock
Revenue growth, margins, operating income, and cash flow help assess NVIDIA’s operating performance and the resilience of its results. They do not establish that its shares are cheap or expensive. A valuation assessment also needs dated share-price and market-capitalization data, a chosen financial measure such as earnings or cash flow, and explicit assumptions about future performance. Without those inputs, a buy-or-sell conclusion would go beyond what the operating figures show.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
