NVIDIA Corporation

NVIDIA Corporation designs graphics processors, networking processors and complete systems for accelerated computing infrastructure, and supplies the software layer that runs them. The company trades on Nasdaq under SEC registration 0001045810, and its fiscal year ends in late January.

Operations are reported in two segments: Compute & Networking, which was 91.8% of quarterly revenue, and Graphics. Cut by market platform, Data Center was $89,023M — 92.5% of total revenue for the quarter.

The products named in the filing are the Blackwell Ultra architecture, which management describes as "the vast majority of our revenue", and the Vera Rubin platform, which management describes as being in "full production" with racks running at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius. Alongside them the filing names Spectrum-6 switch systems, the NVIDIA Vera CPU, the Groq 3 LPX inference accelerator, and the DSX platform.

The filing divides customers into direct customers — add-in board makers, distributors, ODMs, OEMs, cloud service providers, AI model makers and system integrators — and indirect customers who purchase through them. In the second quarter of fiscal 2027, one direct customer was 16% of revenue; for the half, three customers were 16%, 15% and 13%.

Revenue for the quarter was $96,221M, against $46,743M in the prior-year quarter — up 105.9% — and against $81,615M in the prior quarter, up 17.9%.

Two notes govern how this table should be read.

First — the comparison base. The prior-year half's gross margin of 66.6% is depressed by a one-time charge of $4.5 billion for H20 inventory and purchase obligations, recorded in the first quarter of fiscal 2026 following US export controls on China. The current quarter recorded a release of $180M from that same provision. Comparing 75.0% to 66.6% is not a comparison of two operating periods.

Second — GAAP net income exceeds non-GAAP net income. $59,688M against $53,954M. The relationship is normally the other way round. The difference is almost entirely mark-to-market gains on the equity investment portfolio: $7,771M in the quarter and $23,707M in the half, which is 16.76% of first-half pre-tax income. Management itself excludes this line from non-GAAP results.

The gap between earnings and cash is the most prominent figure in the filing. Net income for the quarter was $59,688M; cash from operating activities was $24,077M. A ratio of 40.3%, against 86.3% in the prior quarter and 94.7% in the prior-year half.

The source of the gap is working capital, which consumed $30,707M in a single quarter. The largest line is receivables: $22,346M.

Days sales outstanding — what the company says

"Accounts receivable was $63.1 billion with 60 days sales outstanding (DSO), up from 45 days sequentially, due to extended payment terms on large, multi-quarter agreements with certain investment-grade customers."

Note 7 to the quarterly filing quantifies the policy: for investment-grade customer purchases, the company has provided and may in future provide longer payment terms ranging from 90 days up to one year, to assist customers with large data centre builds.

The balance sheet — the material movements

In June 2026 the company issued $25.0 billion of senior unsecured notes across seven tranches for general corporate purposes, while holding $56.6 billion in cash and marketable debt securities. The inventory mix shifted materially: raw materials rose from $3,807M to $11,341M, while finished goods fell from $8,774M to $6,857M.

The fastest-growing category is not hyperscale but AI Clouds, Industrial & Enterprise — 138% year on year and 25% sequentially. Management attributes this to demand from AI natives, enterprises, sovereign customers, and hyperscalers using AI clouds.

Methodological note: during the second quarter a company was reclassified from AI Clouds, Industrial & Enterprise to Hyperscale, and the comparable prior-period revenue was recast.

Geographic breakdown — by direct customer headquarters

The split is determined by the direct customer's headquarters location, not by the end destination. Taiwan grew 3.03-fold in a year — this is the headquarters location of the ODMs, not an end market. China fell over the half from $13,644M to $12,430M, and management notes that shipments of Data Center Hopper products to China were less than 1% of Data Center revenue in the quarter.

Concentration

The two concentrations move in opposite directions. Revenue concentration fell from 39% across two customers to 16% for a single customer. Receivables concentration rose from 56% across three to 70% across five.

The filing supports the company's position on three measurable layers.

The first layer — share of a single end market. Data Center is 92.5% of quarterly revenue, and the Compute & Networking segment is 91.8%. That is a very high concentration in one market, which is simultaneously a strength and an exposure.

The second layer — research intensity. Research and development spending was $7,054M, or 7.33% of revenue, against 9.18% in the prior-year quarter. The absolute figure grew 64% year on year while revenue grew 106%. A low ratio of research spending to revenue, alongside a 66.24% operating margin, is generally a marker of a strong position — the company does not need to spend proportionally much to hold its place.

The third layer, and it is the new one — financing and guarantees. The filing describes a structure in which the company helps customers secure land, power and shell capacity for data centres. Management sets out the reasoning:

"AI clouds and model makers are seeing extraordinary demand for AI infrastructure, yet many are growing faster than their balance sheets and long-term credit profiles can support. In response, we have entered into arrangements that help select customers secure the land, power and data center capacity needed to support their growth."

Within that structure, agreements were signed under which the company earns revenue on the upfront sale of its infrastructure and, if certain criteria are met, also participates in revenue share generated by the AI clouds from their own third-party customers.

Alongside these, as of 26 July 2026 the company held $3.3 billion of investments in infrastructure financiers accounted for using the equity method. Those investments deemed to be variable interest entities carried a maximum loss exposure of $4.7 billion. The company determined it is not the primary beneficiary and therefore does not consolidate them.

Items under watch

• Days sales outstanding. Rose from 45 to 60 in a single quarter. Note 7 cites terms of 90 days up to one year for investment-grade customers. No customer name, credit rating, ageing schedule or allowance for doubtful accounts appears in the filing.
• Receivables concentration. Five customers are 70% of the gross balance, against three at 56% at the end of fiscal 2026.
• Supply commitments. $119 billion to $279 billion in one quarter. Management notes the agreements are "in certain instances" cancelable or reschedulable.
• Guarantees. Maximum gross exposure of $108.5 billion, of which $105 billion covers a single customer's 20-year data centre leases in Ohio. Exposure declines as the customer fulfils lease payments.
• Leverage. Debt rose from $8,468M to $33,366M. Net cash fell from $41.2 billion to $23.2 billion over the half.
• Gross margin. Per company guidance, 74.0% next quarter against 75.0% this quarter. No reasoning is given in the release.
• Unconsolidated entities. $3.3 billion of equity-method investments in infrastructure financiers, with maximum loss exposure of $4.7 billion.
• Export controls. The chronology in the filing runs from August 2022 to February 2026, including a $4.5 billion charge in the first quarter of fiscal 2026 and a $0.4 billion charge in February 2026.

1. Revenue for the quarter was $96,221M, up 105.9% year on year and 17.9% sequentially. Gross margin was 75.0%, operating margin 66.24%, and Data Center revenue was $89,023M, or 92.5% of the total.
2. Operating cash flow was $24,077M against net income of $59,688M — a ratio of 40.3%, against 94.7% in the prior-year half. Free cash flow fell from $48,554M to $21,341M in the same quarter that revenue rose 17.9%. Working capital consumed $30,707M, of which $22,346M was receivables.
3. Receivables rose from $38,466M to $63,059M, and days sales outstanding from 45 to 60 per company disclosure. Five direct customers now represent 70% of the gross receivables balance, against three representing 56% at the end of fiscal 2026.
4. Off-balance-sheet obligations total approximately $530.5 billion — 2.32 times shareholders' equity of $228,984M. That comprises $366 billion of future commitments, within which supply and capacity commitments jumped from $119 billion to $279 billion in a single quarter; $56 billion of additional commitments; and $108.5 billion of guarantees, of which $105 billion covers a single customer's 20-year leases.