Nvidia Beats Q2 Forecasts With $96.2B Revenue, Guides 70% Growth

Nvidia delivered a blowout fiscal second quarter on August 26, 2026, reporting revenue of $96.2 billion and adjusted earnings of $2.22 per share, both beating Wall Street estimates. CEO Jensen Huang forecast 70% revenue growth for fiscal 2028, far above typical expectations, while the company secured a major deal with Amazon to supply millions of GPUs and CPUs. Data center revenue jumped 117% to $89 billion, underscoring the AI infrastructure boom.

Earnings beat on both revenue and profit

Nvidia reported Q2 revenue of $96.2 billion versus Wall Street’s estimate of $92.3 billion. Adjusted EPS came in at $2.22, beating the consensus forecast of $2.09. Data center revenue, which accounts for nearly all growth, surged 117% year-over-year to $89 billion, exceeding the $85.8 billion estimate. Edge computing revenue, including gaming and robotics, reached $7.2 billion against expectations of $6.6 billion.

Amazon deal and Vera Rubin momentum

Nvidia announced a major contract with Amazon Web Services under which the cloud giant will purchase 2 million GPUs plus millions of CPUs, including Nvidia’s new Vera Rubin processor. CFO Colette Kress said Vera Rubin, which entered production this month, is expected to account for 20% of data center revenue in the current quarter and mark the fastest product ramp in Nvidia’s history. Kress confirmed the company has received orders from every major hyperscaler and AI cloud provider.

Strong guidance despite supply constraints

Nvidia guided for Q3 revenue between $105.8 billion and $110.1 billion, well above the $101.5 billion consensus. The company projects approximately 70% revenue growth in fiscal 2028, a sharp acceleration from mid-to-high 80% year-over-year growth expected in Q3. However, CFO Kress acknowledged supply bottlenecks in memory components are constraining output. Huang told analysts demand far exceeds supply and the company needs help from the entire supply chain.

Debt rising as Nvidia invests in AI labs

Nvidia’s quarterly filing disclosed $33.5 billion in senior notes outstanding as of July 26, plus a $25 billion commercial paper program. The company issued its first bond sale since the AI boom began earlier this year. Of that debt, $15 billion is due within one to five years, up from $2.75 billion in the prior quarter. Huang said his only regret was not investing more aggressively in OpenAI and Anthropic, which he expects will go public soon and become some of the most consequential technology companies in history.

Final Thoughts

Nvidia’s earnings and forward guidance confirm the AI infrastructure build-out remains at full steam, with data center revenue nearly doubling and Vera Rubin orders flowing from all major cloud providers. Meyka rates the stock A- with a 12-month forecast of $217.62, while 19 of 20 analysts rate it Buy or Strong Buy, suggesting limited downside despite near-term supply constraints.

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