NVIDIA Q2 2027 Earnings Preview: What to Watch
Publication Date: Monday, 24 August 2026
Author: Axel Rudolph, Market Analyst
Overview
NVIDIA is set to report its second quarter (Q2) financial results for the fiscal year 2027 on Thursday, 27 August 2026, after the US market closes. The company's share price has seen an increase of approximately 18% year-to-date, currently trading about 6% below its record high of $236.54 reached in May.
Company Guidance
NVIDIA's management has set a high bar for Q2, guiding for revenue of approximately $91.0 billion, with a gross margin target of 74.9% on a GAAP basis and 75.0% on a non-GAAP basis. Operating expenses are expected to be around $8.5 billion GAAP and $8.3 billion non-GAAP. Notably, the guidance assumes no revenue from data center compute sales in China, meaning any sales from this region would be considered an upside surprise.
Wall Street Expectations
The consensus among Wall Street analysts is slightly above NVIDIA's guidance, with expectations of $91.9 billion in revenue and $2.09 in earnings per share (EPS). This is about 1% higher than NVIDIA's own forecast. The long-term target from analysts sits at $297.37, indicating a potential upside of around 35% from the current share price.
Analyst Projections
Other data providers have slightly higher estimates, with one projecting $93.63 billion in revenue and $2.13 EPS, reflecting a nearly 7% upward revision over the past three months. Analysts believe NVIDIA's guidance is conservatively set, as the company has consistently beaten its own guidance for 13 consecutive quarters, although the margin of these beats has been decreasing.
Market Baseline
The market is measuring against a strong baseline, with Q1 FY2027 revenue reported at $81.6 billion, an 85% year-on-year increase. Data center revenue alone was $75.2 billion, up 92% YoY. NVIDIA also announced an $80 billion share buyback and significantly increased its quarterly dividend.
Importance of Q3 Outlook
Analysts suggest that the Q2 results may be less significant than the guidance for Q3. Given the narrow gap between NVIDIA's guidance and analyst expectations, a disappointing Q3 outlook could lead to a sell-off, even if Q2 results are strong. Conversely, a modest beat in Q2 could support the stock if the Q3 outlook is positive.
Earnings Call Focus
During the earnings call, investors will be keen to hear about the progress of the Blackwell Ultra ramp, any signs of customer order delays, and updates on the Vera Rubin platform. Analysts will also be watching for updates on gross margin durability and any potential sales from China.
Accounting Changes
It is important to note that NVIDIA has changed how it presents non-GAAP figures starting in Q1 FY2027, now including stock-based compensation expenses. This change means that comparisons to previous non-GAAP figures should be made with caution.
Technical Analysis
NVIDIA's share price is currently above its support zone of $216.83 - $213.99. A fall below this support could indicate a significant correction, while maintaining above this level could lead to new record highs. A breakthrough above the recent high of $227.92 could target the $232.28 level and potentially the $250 mark.
Conclusion
As NVIDIA approaches its Q2 earnings report, investors and traders should closely monitor the company's guidance and market reactions, particularly regarding the outlook for Q3 and any updates on product developments.