Nvidia Posts $96.2B Revenue, Guides 70% Growth for Fiscal 2028

Nvidia delivered its strongest quarter yet on August 26, posting $96.2 billion in revenue, up 106% from a year earlier and beating analyst expectations of $92.3 billion. The shock came in guidance: CEO Jensen Huang forecast 70% revenue growth for fiscal 2028, implying revenue near $690 billion, more than $100 billion above Wall Street’s $570 billion consensus. Data center revenue hit $89 billion, up 117% year-over-year, as AI infrastructure buildout accelerates globally.

Record earnings crush expectations across the board

Nvidia’s Q2 fiscal 2027 results, ended July 26, 2026, demolished forecasts. Revenue of $96.2 billion exceeded consensus by $4 billion. Net income reached $59.7 billion, up 126% from a year ago. Adjusted earnings per share came in at $2.22, beating the $2.09 estimate. Gross margins held steady at 75%, signaling pricing power despite intense competition. The company returned $26 billion to shareholders through buybacks and dividends in the quarter.

Data center dominates as Vera Rubin enters production

Data center revenue of $89 billion drove growth, up 117% year-over-year and beating estimates of $85.8 billion. Nvidia’s new Vera Rubin chip platform entered full production during the quarter and is ramping at Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure, and other major cloud providers. CFO Colette Kress said Vera Rubin is expected to account for roughly 20% of data center revenue in Q3 and marks “the fastest product ramp in Nvidia’s history.” Hyperscale cloud and AI cloud revenue surged 102% and 138% respectively.

70% growth forecast stuns market, but supply remains tight

Huang delivered the bombshell: Nvidia expects 70% revenue growth in fiscal 2028, implying revenue of $690 billion to $700 billion. This far exceeds the $570 billion consensus forecast by analysts. Huang said customer forecasts pointed to growth doubling next year. However, Huang acknowledged supply constraints, stating “our demand is much higher than that” and that “our entire supply chain is challenged.” For Q3, Nvidia guided to $108 billion in revenue, plus or minus 2%, topping the $103.9 billion consensus. The company also announced a major AWS partnership to deploy 2 million additional next-generation GPUs between 2027 and 2028.

Stock falls despite earnings beat, then rallies on guidance

Nvidia stock initially dropped 1.2% after-hours following the earnings release, then reversed sharply. After Huang’s 70% growth forecast and AWS announcement, the stock rallied 4% to 5% in after-hours trading. On August 27, the stock closed down 1.6% to $209.66 in regular trading, reflecting profit-taking after the 14% gain year-to-date. Meyka rates the stock A- with a 12-month forecast of $217.62, suggesting limited downside. Analyst consensus is “Strong Buy” with 17 buy ratings and 2 strong buys against no sell ratings.

Final Thoughts

Nvidia’s record earnings and unprecedented 70% growth forecast validate the AI infrastructure buildout thesis, but supply constraints and a rising valuation (PE of 36) suggest investors should wait for pullbacks. With Meyka grading the stock A- and analysts targeting $330, the risk-reward favors patient buyers.

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