Nvidia's $96 Billion Quarter Comes With a New Segment, No China and a Financing Machine
The headline growth is real; the more interesting signals are in how Nvidia now reports its business and how it plans to help customers pay for it.
Nvidia reported revenue of $96.2 billion for its second fiscal quarter of 2027, which ended on 26 July, up 18 per cent on the previous quarter and 106 per cent on a year earlier. Data Center revenue was $89.0 billion, up 117 per cent year on year. Gross margin was 75.0 per cent on both GAAP and non-GAAP measures, and the company guided to $108 billion, plus or minus 2 per cent, for the current quarter, with margins of about 74 per cent. That outlook assumes no Data Center compute revenue from China. Jensen Huang's summary was blunt: "Now, compute is revenue."
The shape of the business has changed
The first thing to notice is the reporting structure. Nvidia now presents two lines: Data Center, and a new Edge Computing segment that brought in $7.2 billion, up 27 per cent on a year ago. Judging by the highlights grouped under it, Edge Computing covers the PC, workstation, automotive and robotics work, including the RTX Spark chip Nvidia is building with Microsoft for Windows PCs, DGX Station for Windows, the DRIVE Hyperion autonomous-vehicle platform and its humanoid-robot reference design. Folding those together is a reasonable way to describe a company whose consumer graphics business is now small next to its data-centre sales, but it also makes it harder for outsiders to track gaming demand on its own.