Nvidia posts $96B quarter, guides to 70% growth on supply limits

Nvidia reported second-quarter revenue of $96.2 billion, up 106 percent from a year earlier and above the roughly $91.9 billion Wall Street had penciled in, in results released after Wednesday's market close. Adjusted earnings came to $2.22 per share, more than double the year-earlier figure and ahead of the $2.09 consensus.

The data center segment, which now accounts for the large majority of Nvidia's business, brought in $89.0 billion, up 117 percent from a year ago and above the roughly $85.1 billion analysts expected. Non-GAAP gross margin held at 75.0 percent, actually improving from 72.5 percent a year earlier rather than the flat-to-lower margin some investors had braced for, as the mix shifted toward higher-margin Blackwell Ultra shipments.

For the current quarter, Nvidia guided to revenue of $108 billion, plus or minus 2 percent, growth of more than 89 percent from a year earlier. The bigger number investors were waiting for was further out: fiscal 2028 revenue growth of roughly 70 percent, the company's first look at the year after next. CEO Jensen Huang framed that figure not as a demand forecast but as a supply ceiling. "Even though our demand is much greater than 70 percent, our supply allows us to confidently deliver 70 percent," he told analysts on the earnings call, meaning Nvidia says it could sell more than that guidance implies if it could build more chips.

Shares rose in after-hours trading and were modestly higher, with Nasdaq futures up roughly 1 percent, in early Thursday trading. That reaction was calmer than the options market had priced in: ahead of the report, traders had bet on a swing of about 5.4 percent in either direction, worth roughly 280 billion dollars in market value. Analysts had noted that implied moves around Nvidia earnings have been shrinking in percentage terms even as the dollar figures grow, and this quarter fit that pattern, a beat-and-raise result that moved the stock by a fraction of what derivatives markets had braced for.

This article is a market report, not investment advice.