Nvidia Q2 FY2027 revenue $96B, expands AWS partnership for 2M GPUs

Source: Motley Fool Transcribing, The Motley Fool Read Time: 43 min

Stock Ticker: NVDA (+0.87%)

Date

Wednesday, August 26, 2026, at 5:00 p.m. ET

Call Participants

• President and Chief Executive Officer: Jensen Huang
• Executive Vice President and Chief Financial Officer: Colette Kress
• Investor Relations: Toshiya Hari

Full Conference Call Transcript

Operator: Good afternoon. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to NVIDIA's second quarter earnings call. [Operator Instructions]. Toshiya Hari, you may begin your conference.

Toshiya Hari: Thank you. Good afternoon, and welcome to NVIDIA's conference call for the second quarter of fiscal 2027. With me today from NVIDIA are Jensen Huang, President and Chief Executive Officer; and Colette Kress, Executive Vice President and Chief Financial Officer.

Our call is being webcast live on NVIDIA's Investor Relations website. The webcast will be available for replay until the conference call to discuss our financial results for the third quarter of fiscal 2027. The content of today's call is NVIDIA's property. It cannot be reproduced or transcribed without our prior written consent.

During this call, we may make forward-looking statements based on current expectations. These are subject to a number of significant risks and uncertainties, and our actual results may differ materially. For a discussion of factors that could affect our future financial results and business, please refer to the disclosure in today's earnings release, our most recent Forms 10-K and 10-Q, and the reports that we may file on Form 8-K with the Securities and Exchange Commission.

All our statements are made as of today, August 26, 2026, based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During this call, we will discuss non-GAAP financial measures. You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in our CFO commentary, which is posted on our website.

With that, let me turn the call over to Colette.

Colette Kress: Thanks, Toshiya. We delivered another outstanding quarter with record revenue, operating income, and EPS. Total revenue of $96 billion more than doubled year-over-year as growth accelerated for the fourth consecutive quarter.

The surge in AI demand is driving a global infrastructure buildout, supported by an expanding and diverse set of growth opportunities, spanning hyperscalers, AI labs, AI natives, enterprises, and sovereign customers. We expect to grow revenue by approximately 70% in fiscal 2028. This is a supply-constrained outlook.

Q2 data center revenue increased 18% quarter-over-quarter to $89 billion, with strong contributions from both sub-segments: hyperscale and ACIE (which includes our NeoCloud, industrial, and enterprise customers).

Hyperscale Revenue

Hyperscale revenue of $49 billion grew 13% sequentially, driven by sustained strength in Blackwell, reinforcing that more compute drives more revenue. As new GPU capacity comes online, our hyperscale customers delivered strong financial results in the quarter with accelerating revenue growth and expanding margins.

With cloud industry backlog now greater than $2 trillion, CapEx by the top 5 hyperscalers is expected to reach nearly $800 billion in 2026 and $1.3 trillion in 2027.

AWS Partnership Expansion

Today, we are delighted to announce an expansion of our partnership with AWS, building on its already vast installed base of NVIDIA compute. AWS is deploying an additional 2 million GPUs starting this quarter through the second quarter of fiscal '29, along with Vera CPUs — some integrated with Rubin, others standalone.

AWS will serve the NVIDIA Nemotron family of open models on Amazon Bedrock and SageMaker. Amazon will also adopt our full physical AI stack — Omniverse, Cosmos, Isaac, and Jetson — to power its fleet of warehouse robots.

ACIE Revenue

ACIE revenue of $40 billion increased 25% sequentially and 138% year-over-year. Growth was driven by NeoCloud capacity additions to meet the rising demand from enterprises, AI start-ups, and sovereigns, as well as hyperscalers purchasing capacity to supplement their own build-outs.

Using NVIDIA DSX reference designs, our NeoCloud partners are bringing capacity online faster and at lower token cost. They are expected to exit the year with 8 gigawatts in total installed capacity, up from approximately...