Nvidia's fiscal 2027 second quarter revenue surged 106% to $96.22 billion, surpassing the consensus estimate of $92.165 billion, while adjusted earnings per share rose 128% to $2.46, exceeding expectations of $2.10. Despite initial declines in share price following the earnings report, the stock rebounded over 4% as CFO Colette Kress addressed concerns about capacity constraints.
The company is confident enough in its growth to provide guidance for fiscal 2028, projecting a 70% revenue increase, significantly higher than analysts' expectations of 45%. CEO Jensen Huang emphasized that while demand exceeds 70%, supply limitations allow for this conservative forecast.
Nvidia's gross margin outlook was slightly lower due to rising memory prices, which Kress noted would continue to impact costs. However, the company's revenue growth is expected to offset these challenges. Nvidia also announced an expansion of its partnership with Amazon Web Services, which will deploy an additional 2 million Nvidia GPUs, further solidifying its position in the AI market.
The company returned a record $26 billion to shareholders through buybacks and dividends, and plans to increase returns of excess free cash flow. Nvidia's financial commitments have risen to approximately $530.5 billion, reflecting its strategic investments in AI infrastructure and partnerships.
The Data Center segment revenue reached $89.02 billion, exceeding estimates and showing robust growth, particularly in hyperscale sales. Overall, Nvidia's strong performance and optimistic outlook highlight its pivotal role in the AI revolution, making it a key player in the technology sector