NVIDIA, FY27 Q2 Earnings Results

01 Revenue, operating income and results versus expectations

Year over year · Revenue 46.743 → 96.221 B$ (+105.9% · +49.478 B$), Operating income 28.440 → 63.734 B$ (+124.1% · +35.294 B$).

Quarter over quarter · Revenue 81.615 → 96.221 B$ (+17.9% · +14.606 B$), Operating income 53.536 → 63.734 B$ (+19.0% · +10.198 B$), Operating margin 65.6% → 66.2% (+0.6%p).

Data Center accounts for most consolidated revenue. Segment amounts retain the rounding used in the release and may not sum exactly to consolidated revenue.

02 Earnings sustainability · From operating income to net income

GAAP operating income was 63.734 B$, versus non-GAAP operating income of 63.956 B$. From FY27 Q1, company non-GAAP figures include stock-based compensation, and comparison periods have been recast. Do not mix these with the previous definition that excluded stock-based compensation.

Equity investment valuation gains of 7.771 B$ made GAAP net income of 59.688 B$ higher than non-GAAP net income of 53.954 B$. Adjusted net income is not always higher than GAAP.

Operating income

63.734 B$

Net non-operating income/loss

7.773 B$

Income tax expense

−11.819 B$

Consolidated net income

59.688 B$

Net income of 59.688 B$ in the existing quarterly data is on a consolidated basis.

03 Cash flow quality · Net income → OCF → FCF

Increases in receivables of 22.346 B$, inventory of 5.784 B$ and prepaid expenses and other items of 5.497 B$ reduced OCF. Cash collection timing and advance supply-chain spending were significant relative to high accounting earnings.

Company FCF of 21.341 B$ reconciles as OCF 24.077 − CapEx 2.677 − principal payments for equipment and intangible asset financing 0.059. The simple OCF−CapEx figure is 21.400 B$.

Consolidated net income

59.688 B$

Total net adjustments, including non-cash items and working capital¹

−35.611 B$

Operating cash flow

24.077 B$

Cash CapEx

−2.677 B$

Additional company-defined adjustments and disclosure rounding²

−0.059 B$

Company-defined FCF

21.341 B$

¹ Total net adjustments calculated as OCF minus net income. This is not a single disclosed line item; it combines non-cash items, working capital, classification differences and other adjustments.

² Difference between company FCF and OCF minus cash CapEx. The detailed scope follows the explanation above and the original definition.

FCF versus the previous quarter · 48.554 → 21.341 B$, a 27.213 B$ deterioration.

04 Financial capacity · Net debt and payment obligations

Net debt deteriorated by 18.645 B$ from the previous quarter. The carrying amount of current borrowings is 1.000 B$. This may differ from the principal maturity schedule.

Period-end borrowings comprised current borrowings of 1.000 B$ and non-current borrowings of 32.366 B$. Net cash is positive, but unpaid purchase and supply commitments are different from period-end borrowings.

Common definitions · Cash and liquid assets = cash equivalents + current investments and deposits. Borrowings = carrying amount of interest-bearing debt (current + non-current), excluding separate lease liabilities. This differs from total liabilities of 91.288 B$. Restricted cash, non-current securities and non-current deposits are excluded from cash and liquid assets.

05 Investment, capital allocation and cash recovery

Quarterly share repurchases and dividends of approximately 26.0 B$ exceeded company FCF of 21.341 B$. This means current-period FCF alone cannot explain capital allocation; opening cash and financing and investment activities must also be considered.

Rising receivables do not necessarily indicate bad debts. Rather, they indicate a need to check whether high growth translates into actual cash collection.

This quarter, cash CapEx/revenue was 2.8% and FCF/revenue was 22.2%. These ratios should not be used as a simple ranking of companies with different business models and FCF definitions.

06 Next-quarter and full-year outlook and implications

YoY +85.7%~+93.2% · QoQ +10.0%~+14.5%. Comparison revenue was 57.006 B$ in the corresponding prior-year quarter and 96.221 B$ in the current quarter. Growth rates were calculated from the underlying amounts.

Next-quarter revenue guidance was 108 B$±2%. The company said the outlook excluded Data Center compute revenue from China.

The outlook was for GAAP gross margin of 74%±0.5%p and GAAP operating expenses of approximately 9.2 B$. Actual results may change if assumptions such as supply conditions or export policy change; no probability of target achievement is quantified.

RPO / Backlog

QoQ 2.600 → 3.200 B$ (+23.1% · +0.600 B$).

YoY 1.900 → 3.200 B$ (+68.4% · +1.300 B$).

Disclosed long-term remaining performance obligations. This differs from total GPU orders, purchase commitments and amounts securing supply capacity · Contract balances are not equivalent to committed next-quarter revenue or cash inflows. RPO scope differs across companies.

Quarterly results · CY-aligned view

Amounts in B$. The table shows all 4 quarters of the prior year and the current year's reported quarters, based on the report's CY-aligned year. Each fiscal quarter is assigned to the calendar quarter with the greatest overlap in its actual reporting period; the original FY/CY label and start and end dates are also shown. Amounts have not been recalculated into actual calendar quarters.

Indented rows are components of, or reference items for, the parent metric. Net cash = cash and liquid assets − borrowings. Depending on company definitions, FCF may include additional adjustments such as lease principal and therefore differ from operating cash flow − cash CapEx. See the cash flow discussion for the detailed definition.