Nvidia Crushes Earnings, Guides to 70% Revenue Growth in Fiscal 2028

Nvidia reported its fiscal 2027 second-quarter results on August 26, exceeding market expectations with revenue of $96.22 billion, a 106% year-over-year increase, and net income of $59.7 billion, up 126%. Data center revenue contributed $89 billion, accounting for more than 90% of total revenue and growing 117% year-over-year.

The company provided early guidance for fiscal 2028 revenue growth of approximately 70%, significantly surpassing the market consensus of 45%. This outlook sent Nvidia's stock price surging over 5% in after-hours trading.

Nvidia also announced an expanded partnership with Amazon Web Services, which plans to deploy an additional 2 million GPUs across its global infrastructure between 2027 and 2028. These chips will be used for training and running AI models.

However, Nvidia's conservative gross margin outlook initially sent the after-hours stock price lower. The company guided third-quarter gross margin to 74%, below analyst expectations of 75%, and expects it to bottom out in the 71%, 72% range in the fourth quarter before stabilizing at 72%, 73% in fiscal 2028.