---
title: "NVIDIA's $108b Quarter"
description: "NVIDIA guided Q3 to $108b, but hyperscaler growth slowed to 13% sequentially. The buyers making up the difference need financing, so DSO jumped 15 days to 60 \u0026 the commitment stack reached $581b including a $101b equity portfolio in its own customers."
categories: ["AI","Semiconductors","Infrastructure"]
keywords: ["nvidia earnings","q2 fy27","data center revenue","ai compute supercycle","days sales outstanding","accounts receivable","vendor financing","hyperscaler capex","neocloud","sovereign ai"]
ai_summary: "NVIDIA's Q2 FY27 revenue reached $96b with a $108b Q3 guide, but hyperscale revenue grew only 13% sequentially against 25% for everyone else. To fund the buyers filling that gap, NVIDIA extended payment terms — DSO rose from 45 to 60 days \u0026 receivables hit $63b — \u0026 built a $581b stack of supply commitments, power guarantees, leases \u0026 $101b of equity in the AI startups \u0026 neoclouds buying its chips."
date: 2026-08-26
lastmod: 2026-08-27
canonical_url: https://www.tomtunguz.com/nvidia-q2-fy27-earnings/
author: "Tomasz Tunguz"
---


NVIDIA booked $96b of revenue last quarter, up 106% from a year ago & 18% from the quarter before. The company guided Q3 to $108b ±2%.

That guide crosses $100b of revenue in a single quarter. No semiconductor company has ever reached that threshold, & no company of any kind has reached it while growing triple digits.

{{< email_image src="d2bffyzubwdywna17ilb" alt="NVIDIA total and Data Center quarterly revenue rising toward a $108b guide" width="540" height="349" >}}

Q2 alone runs at $385b a year. At $108b, NVIDIA annualizes to $432b of revenue, making it the sixth largest company in the world, leapfrogging Apple, McKesson & Alphabet.

The only companies still ahead of it are Amazon, Walmart, State Grid, UnitedHealth & Saudi Aramco,[^1] all of which compound between -3% & 14% a year. NVIDIA is growing 106%.

On gross profit, the math is even more extreme. Because NVIDIA operates at 75.0% gross margins, that $108b quarterly run-rate generates $324b of annual gross profit, ranking it second in the world.

But the revenue contribution is shifting.

{{< email_image src="vgtkuktdi87fp7ennglu" alt="NVIDIA Data Center revenue split between hyperscalers and all other clouds, industries and enterprises" width="540" height="372" >}}

Colette Kress gave the split :

> "Hyperscale revenue more than doubled from a year ago and increased 13% sequentially... ACIE revenue increased 138% from a year ago and 25% sequentially driven by end-demand from AI natives, enterprises, and sovereign customers."

{{< email_image src="b79xmjcqrdtbzaytjpr7" alt="Hyperscaler share of NVIDIA Data Center revenue falling from 59% to 55% as ACIE share rises" width="540" height="373" >}}

For the first time, neoclouds contributed the majority of net-new Data Center revenue. This shift suggests NVIDIA's business is healthier & more diversified than before, but it raises the question of whether hyperscaler custom silicon, Google TPUs, Amazon Trainium & Meta MTIA, will eventually slow Big Tech's demand.

Jensen Huang described the replacement demand :

> "This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online."

It also changes the credit risk. Non-hyperscalers have significantly weaker balance sheets & smaller cash flows than Big Tech, meaning NVIDIA will likely provide more supplier financing to sustain their growth. We are already seeing that show up in the receivables.

{{< email_image src="thqceqrddrhnbrprezjs" alt="NVIDIA days sales outstanding jumping from 45 to 60 days as accounts receivable surged to 63 billion dollars" width="540" height="294" >}}

Days sales outstanding jumped from 45 to 60 in one quarter. For eight quarters before this, DSO sat in a band between 43 & 46 days. Revenue grew 18% sequentially. Receivables grew 64%.

Kress attributed it to "extended payment terms on large, multi-quarter agreements with certain investment-grade customers."

Watch DSO next quarter. If 60 days was a one-time reset, it holds or falls. If it climbs, it signals that NVIDIA is extending more credit to sustain demand from buyers who cannot self-fund their growth.

[^1]: Annual revenues based on Fortune Global 500 : Amazon ($717b), Walmart ($713b), State Grid ($655b), UnitedHealth ($448b), & Saudi Aramco ($446b).