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NVIDIA’s latest reported quarter shows why revenue, profit, and free cash flow should be read together: for fiscal Q2 2027, the quarter ended July 26, 2026, the company reported $96.2 billion in revenue, $59.688 billion in GAAP net income, and $21.341 billion in free cash flow. Each figure measures a different part of performance, and the cash-flow measure is NVIDIA-defined rather than a standardized GAAP line item.
What NVIDIA’s latest figures show
NVIDIA announced its second-quarter fiscal 2027 results on August 26, 2026. The quarter ended July 26; “Q2 FY2027” is NVIDIA’s fiscal period, not a generic calendar quarter. The company reported the following figures in its earnings release.
| Measure | Q2 FY2027 | What it describes |
|---|---|---|
| Revenue | $96.2 billion | Sales earned during the quarter |
| GAAP net income | $59.688 billion | Accounting profit after expenses and taxes |
| Free cash flow | $21.341 billion | NVIDIA-defined cash measure after specified asset-related payments |
Revenue increased 18% sequentially and 106% year over year. Those rates use different comparison periods, so the comparison label matters. Data Center revenue was $89.0 billion, up 117% year over year.
What revenue tells investors
Revenue is the top-line amount earned from sales over a reporting period. It helps show the scale and direction of the business: NVIDIA’s $96.2 billion in Q2 FY2027 revenue, for example, was substantially higher than the prior-year quarter. But revenue does not say how much the company kept after paying operating costs, taxes, or other expenses. A large sales figure by itself is not a measure of profit or cash generation.
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What “profit” means in this comparison
“Profit” can refer to several income-statement measures. Gross profit focuses on sales less the cost of goods sold; operating income reflects operating expenses as well; net income is the bottom-line result after expenses and taxes. For the quarter in this comparison, NVIDIA reported $59.688 billion in GAAP net income. Calling that figure simply “profit” without naming net income can obscure which accounting measure is meant.
How NVIDIA calculates free cash flow
NVIDIA identifies free cash flow (FCF) as a non-GAAP financial measure. The company 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. Its Q2 FY2027 FCF was $21.341 billion.
FCF is therefore not interchangeable with net income. Net income is an accounting measure; FCF starts with cash from operations and subtracts the specified asset-related payments. The company’s definition determines what is deducted, so another company’s FCF figure may be calculated differently.
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Reading the three measures together
The measures answer distinct questions: how much NVIDIA sold, how much accounting profit it recorded, and how much cash remained under its stated FCF calculation. Their different values are not a contradiction; the measures have different bases and deductions. Compare them only for matching reporting periods, and preserve labels such as GAAP net income and company-defined FCF.
Cash-flow figures also reflect collection timing and working capital. 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 FCF. Its Form 10-Q says first-half operating cash flow rose versus the prior-year period due to higher revenue, partly offset by increased accounts receivable tied to extended payment terms on large, multi-quarter agreements with certain investment-grade customers. This is one reason reported earnings and cash generated over a period need not move in lockstep.
Period comparisons and non-GAAP caveats
Use the same period when comparing revenue, net income, and FCF. NVIDIA’s fiscal 2026 revenue of $215.9 billion and full-year FCF of $96.575 billion are annual totals, not direct comparables to one quarter’s figures. NVIDIA reported those fiscal 2026 values in its Q4 and fiscal 2026 release.
NVIDIA cautions that its non-GAAP measures are not substitutes for GAAP results and may differ from non-GAAP measures used by other companies. For fiscal 2027, the company says its non-GAAP measures no longer exclude stock-based compensation expense; it also updated historical non-GAAP information to include it. When reviewing a trend across periods, use NVIDIA’s reconciliations and note that policy change rather than assuming every historical non-GAAP figure was prepared on the same basis.
Cash on hand is a different kind of figure
As of July 26, 2026, NVIDIA reported $22.443 billion in cash and cash equivalents and $34.143 billion in marketable debt securities, or $56.586 billion combined. These are balance-sheet amounts at a specific date, not sales or profit earned during the quarter and not free cash flow for that period.
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