NVIDIA’s latest reported quarter, fiscal Q2 2027, ended July 26, 2026. Revenue was $96.2 billion, GAAP net income was $59.688 billion, and the company’s non-GAAP free cash flow was $21.341 billion. These figures describe three different things: sales, accounting earnings after expenses and taxes, and cash generated after NVIDIA’s stated deductions.
Reading them together gives investors a fuller view than treating any one as a stand-alone score. NVIDIA announced the results on August 26, 2026; all figures below are for the company’s fiscal reporting periods, not calendar quarters.
What do revenue, profit, and free cash flow measure?
| Metric | What it tells you | How NVIDIA reports or defines it |
|---|---|---|
| Revenue | Sales earned during a period; a measure of business scale and trajectory, not the amount retained after costs. | Revenue is reported on the income statement. NVIDIA reported $96.2 billion for Q2 FY2027. |
| Net income | Accounting profit after expenses and taxes. | GAAP net income is a named income-statement measure. NVIDIA reported $59.688 billion for Q2 FY2027. |
| Free cash flow | Cash generated after the company’s specified deductions from operating cash flow. | NVIDIA identifies FCF as a non-GAAP measure. It calculates it as GAAP net cash provided by operating activities less purchases related to property and equipment and intangible assets, and less principal payments on property and equipment and intangible assets. Q2 FY2027 FCF was $21.341 billion. |
“Profit” can refer to different income-statement measures. Gross profit and operating income focus on narrower stages of costs and operations; for a clear comparison here, the specific bottom-line measure is GAAP net income.
What do NVIDIA’s latest figures say?
In Q2 FY2027, NVIDIA reported $96.2 billion in revenue, up 18% sequentially and 106% year over year. The company’s Data Center revenue was $89.0 billion, up 117% year over year. The sequential and year-over-year percentages use different comparison periods, so each growth rate should be read with its label.
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GAAP diluted earnings per share were $2.46. EPS is another accounting measure, expressed per diluted share; it is not interchangeable with total net income or free cash flow.
The figures show that sales, accounting earnings, and cash generation are all substantial, but at different levels. Revenue alone cannot establish how much the company earned after expenses or how much cash remained after NVIDIA’s FCF deductions.
Why is free cash flow different from net income?
Net income is calculated under GAAP accounting and includes revenues and expenses recognized for the period. Free cash flow starts with cash from operating activities and subtracts the asset-related purchases and principal payments in NVIDIA’s stated formula. Because the measures use different bases and deductions, they need not move in lockstep.
For the six months ended July 26, 2026, NVIDIA reported $74.421 billion in net cash provided by operating activities and $69.895 billion in free cash flow. The company’s Form 10-Q said first-half operating cash flow increased from the prior-year period because of higher revenue, partly offset by increased accounts receivable associated with extended payment terms on large multi-quarter agreements with certain investment-grade customers. This is one example of how collection timing and working capital can affect cash-flow results.
How should investors compare these numbers?
- Match the periods. Compare quarter with quarter or full year with full year. NVIDIA’s fiscal 2026 revenue of $215.9 billion and full-year FCF of $96.575 billion are annual figures, not direct comparators for one quarter.
- Keep the labels attached. Distinguish GAAP net income from other kinds of profit, and identify whether a growth rate is sequential or year over year.
- Check the FCF definition. NVIDIA’s calculation is company-defined, not a universal standardized line item. Other companies can define or present non-GAAP measures differently.
- Use GAAP results alongside non-GAAP measures. NVIDIA says its non-GAAP measures are not intended to be considered in isolation or as substitutes for GAAP results, and may differ from measures used by other companies.
- Account for changes in presentation. For fiscal 2027, NVIDIA says its non-GAAP measures no longer exclude stock-based compensation expense; historical non-GAAP information was updated to include it. Use the company’s reconciliations when comparing periods across that change.
What should not be confused with these performance measures?
As of July 26, 2026, NVIDIA reported $22.443 billion in cash and cash equivalents and $34.143 billion in marketable debt securities, a combined $56.586 billion. Those are balance-sheet amounts at a point in time. They are not revenue, profit, or quarterly free cash flow, which measure activity across a period.
In its August 26, 2026 earnings release, CEO Jensen Huang said, “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.” This is management’s characterization of market conditions, not a definition of the financial measures or a replacement for the reported results.
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Sources
- NVIDIA, Q2 FY2027 earnings release (August 26, 2026).
- NVIDIA Form 10-Q for the quarter ended July 26, 2026.
- NVIDIA, Q4 and fiscal 2026 earnings release.
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