Full Breakdown
Nvidia Reports Record Q2 Revenue, Forecasts 70% FY28 Growth Amid Supply Constraints
8/27/2026, 8:29:28 PM
Record Quarterly Performance
Nvidia announced fiscal second-quarter revenue of $96.2 billion, more than double year over year, with adjusted earnings per share of $2.22, beating the $2.09 consensus. Datacenter revenue rose 117 % to $89 billion, surpassing estimates. The stock closed at $209.66 on August 26 and traded as high as $226 in after-hours.
Outlook and Growth Forecast
Nvidia projected 70 % revenue growth for fiscal year 2028 (ending January 2028) and forecast third-quarter revenue of $108 billion ± 2 %, above the $104.19 billion estimate. The outlook rests on demand from AI labs, “neo-clouds” such as Nebius and CoreWeave, and the rollout of next-generation Vera Rubin processors, expected to represent roughly one-fifth of current-quarter datacenter revenue.
A partnership with Amazon Web Services will add 2 million Nvidia GPUs to AWS’s global infrastructure in 2027-2028. The company also announced plans for an 8-gigawatt datacenter in Ohio and a financing pool involving BlackRock, Blackstone, KKR, Apollo, Brookfield and Goldman Sachs.
Official Statements & Responses
Chief Executive Jensen Huang said AI has entered an inflection point and that “compute is revenue.” Finance chief Colette Kress warned that “we are supply-constrained,” citing soaring memory prices and higher component costs that could push margins to 71-72 % in Q4, down from about 74 % in Q3.
Data & Statistics
- Q2 revenue: $96.2 billion
- YoY revenue increase: 106 %
- Datacenter revenue: $89 billion, 117 % YoY
- EPS: $2.22 (adjusted)
- FY28 revenue growth forecast: 70 %
- Q3 revenue forecast: $108 billion ± 2 %
- Margin outlook: 71-72 % (Q4) vs. 74 % (Q3)
Criticism & Opposition
Analyst Jacob Bourne warned that “even extraordinary growth can fail to satisfy investors as scrutiny of AI spending and its financing intensifies,” highlighting concerns about the sustainability of massive AI-related capital outlays.
Verbatim Quotes
- “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” — Huang
- “What makes (the forecast) even more credible is that demand is broadening beyond the original hyperscalers with AI clouds, enterprises, sovereign buyers and industrial customers now growing materially faster,” — Shay Boloor, Futurum Equities
- “I have 100% confidence that our technology will continue to be extraordinary for them,” — Jensen Huang
Why It Matters
Nvidia’s earnings are a bellwether for the AI ecosystem, as its GPUs power most large-scale models and data-center workloads. Guidance suggests continued expansion of compute demand, but supply-chain constraints could temper margins and affect AI-related investment timing.
Conflicting Reports & Gaps
Revenue is reported as $96.2 billion by some sources and $96.22 billion by others, reflecting rounding differences. Nvidia did not disclose projected revenue from its China datacenter business, leaving that market segment uncertain.
What’s Next
Nvidia will monitor supply-chain developments while expanding GPU capacity with AWS and scaling the Vera Rubin platform. The upcoming third-quarter results will test whether the 70 % FY28 growth forecast holds amid ongoing component shortages.
