Item 1. Financial Statements (Unaudited)

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Statements of Income

(In millions, except per share data)

(Unaudited)

			Three Months Ended												Six Months Ended
			Jul 26, 2026						Jul 27, 2025						Jul 26, 2026						Jul 27, 2025
Revenue			$	96,221					$	46,743					$	177,837					$	90,805
Cost of revenue			24,079						12,890						44,538						30,284
Gross profit			72,142						33,853						133,299						60,521
Operating expenses
Research and development			7,054						4,291						13,375						8,280
Sales, general and administrative			1,354						1,122						2,654						2,163
Total operating expenses			8,408						5,413						16,029						10,443
Operating income			63,734						28,440						117,270						50,078
Other income, net			7,773						2,766						24,140						3,039
Income before income tax			71,507						31,206						141,410						53,117
Income tax expense			11,819						4,784						23,400						7,920
Net income			$	59,688					$	26,422					$	118,010					$	45,197
Net income per share:
Basic			$	2.47					$	1.08					$	4.87					$	1.85
Diluted			$	2.46					$	1.08					$	4.85					$	1.84
Weighted average shares used in per share computation:
Basic			24,190						24,366						24,238						24,404
Diluted			24,285						24,532						24,338						24,571

See accompanying Notes to Condensed Consolidated Financial Statements.

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(In millions)

(Unaudited)

			Three Months Ended												Six Months Ended
			Jul 26, 2026						Jul 27, 2025						Jul 26, 2026						Jul 27, 2025
Net income			$	59,688					$	26,422					$	118,010					$	45,197
Other comprehensive income (loss), net of tax
Available-for-sale securities:
Net change in unrealized gain (loss)			(102)						(52)						(180)						87
Cash flow hedges:
Net change in unrealized gain (loss)			(60)						36						(23)						55
Other comprehensive income (loss), net of tax			(162)						(16)						(203)						142
Total comprehensive income			$	59,526					$	26,406					$	117,807					$	45,339

See accompanying Notes to Condensed Consolidated Financial Statements.

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

			Jul 26, 2026						Jan 25, 2026
Assets
Current assets:
Cash and cash equivalents			$	22,443					$	10,605
Marketable debt securities			34,143						39,065
Marketable equity securities			42,783						12,886
Accounts receivable, net			63,059						38,466
Inventories			31,575						21,403
Prepaid expenses and other current assets			3,409						3,180
Total current assets			197,412						125,605
Property and equipment, net			14,285						10,383
Operating lease assets			5,390						2,867
Goodwill			21,125						20,832
Intangible assets, net			2,998						3,306
Deferred income tax assets			12,159						13,258
Non-marketable securities			51,157						22,251
Other assets			15,746						8,301
Total assets			$	320,272					$	206,803
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable			$	15,059					$	9,812
Accrued and other current liabilities			26,960						21,352
Short-term debt			1,000						999
Total current liabilities			43,019						32,163
Long-term debt			32,366						7,469
Long-term operating lease liabilities			4,985						2,572
Other long-term liabilities			10,918						7,306
Total liabilities			91,288						49,510
Commitments and contingencies
Shareholders’ equity:
Preferred stock			—						—
Common stock			24						24
Additional paid-in capital			9,828						10,118
Accumulated other comprehensive income (loss)			(25)						178
Retained earnings			219,157						146,973
Total shareholders’ equity			228,984						157,293
Total liabilities and shareholders’ equity			$	320,272					$	206,803

See accompanying Notes to Condensed Consolidated Financial Statements.

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Statements of Shareholders’ Equity

(Unaudited)

			Common Stock Outstanding												Additional Paid-in Capital						Accumulated Other Comprehensive Income (Loss)						Retained Earnings						Total Shareholders’ Equity
			Shares						Amount
(In millions, except per share data)
Balances as of Apr 26, 2026			24,221						$	24					$	10,275					$	137					$	185,038					$	195,474
Net income			—						—						—						—						59,688						59,688
Other comprehensive loss			—						—						—						(162)						—						(162)
Issuance of common stock			32						—						—						—						—						—
Tax withholding related to common stock			(12)						—						(2,402)						—						—						(2,402)
Shares repurchased			(94)						—						(152)						—						(19,522)						(19,674)
Cash dividends declared and paid ($0.25 per common share)			—						—						—						—						(6,047)						(6,047)
Fair value of partially vested equity awards assumed in connection with acquisitions			—						—						80						—						—						80
Stock-based compensation			—						—						2,027						—						—						2,027
Balances as of Jul 26, 2026			24,147						$	24					$	9,828					$	(25)					$	219,157					$	228,984
Balances as of Apr 27, 2025			24,388						$	24					$	11,475					$	186					$	72,158					$	83,843
Net income			—						—						—						—						26,422						26,422
Other comprehensive loss			—						—						—						(16)						—						(16)
Issuance of common stock			39						—						—						—						—						—
Tax withholding related to common stock			(13)						—						(1,848)						—						—						(1,848)
Shares repurchased			(67)						—						(59)						—						(9,599)						(9,658)
Cash dividends declared and paid ($0.01 per common share)			—						—						—						—						(244)						(244)
Stock-based compensation			—						—						1,632						—						—						1,632
Balances as of Jul 27, 2025			24,347						$	24					$	11,200					$	170					$	88,737					$	100,131

See accompanying Notes to Condensed Consolidated Financial Statements.

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Statements of Shareholders’ Equity

(Unaudited)

			Common Stock Outstanding												Additional Paid-in Capital						Accumulated Other Comprehensive Income (Loss)						Retained Earnings						Total Shareholders’ Equity
			Shares						Amount
(In millions, except per share data)
Balances as of Jan 25, 2026			24,304						$	24					$	10,118					$	178					$	146,973					$	157,293
Net income			—						—						—						—						118,010						118,010
Other comprehensive loss			—						—						—						(203)						—						(203)
Issuance of common stock			69						—						515						—						—						515
Tax withholding related to common stock			(23)						—						(4,531)						—						—						(4,531)
Shares repurchased			(203)						—						(309)						—						(39,536)						(39,845)
Cash dividends declared and paid ($0.26 per common share)			—						—						—						—						(6,290)						(6,290)
Fair value of partially vested equity awards assumed in connection with acquisitions			—						—						80						—						—						80
Stock-based compensation			—						—						3,955						—						—						3,955
Balances as of Jul 26, 2026			24,147						$	24					$	9,828					$	(25)					$	219,157					$	228,984
Balances as of Jan 26, 2025			24,477						$	24					$	11,237					$	28					$	68,038					$	79,327
Net income			—						—						—						—						45,197						45,197
Other comprehensive income			—						—						—						142						—						142
Issuance of common stock			89						—						370						—						—						370
Tax withholding related to common stock			(26)						—						(3,380)						—						—						(3,380)
Shares repurchased			(193)						—						(151)						—						(24,010)						(24,161)
Cash dividends declared and paid ($0.02 per common share)			—						—						—						—						(488)						(488)
Fair value of partially vested equity awards assumed in connection with acquisitions			—						—						22						—						—						22
Stock-based compensation			—						—						3,102						—						—						3,102
Balances as of Jul 27, 2025			24,347						$	24					$	11,200					$	170					$	88,737					$	100,131

See accompanying Notes to Condensed Consolidated Financial Statements.

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

			Six Months Ended
			Jul 26, 2026						Jul 27, 2025
Cash flows from operating activities:
Net income			$	118,010					$	45,197
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense			3,954						3,099
Depreciation and amortization			2,124						1,280
Deferred income taxes			982						(2,160)
Gains from equity securities, net			(23,707)						(2,073)
Other			222						(196)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable			(24,590)						(4,743)
Inventories			(10,204)						(4,880)
Prepaid expenses and other assets			(6,480)						946
Accounts payable			4,125						2,255
Accrued and other current liabilities			8,015						3,075
Other long-term liabilities			1,970						979
Net cash provided by operating activities			74,421						42,779
Cash flows from investing activities:
Proceeds from sales and maturities of debt securities			26,563						6,739
Proceeds from sales of equity securities			7,241						70
Purchases of equity securities			(42,404)						(1,245)
Purchases of debt securities			(21,777)						(14,108)
Purchases related to property and equipment and intangible assets			(4,434)						(3,122)
Acquisitions, net of cash acquired			(298)						(677)
Other			(15)						—
Net cash used in investing activities			(35,124)						(12,343)
Cash flows from financing activities:
Proceeds related to issuance of debt, net of costs			24,896						—
Proceeds related to employee stock plans			515						370
Payments related to repurchases of common stock			(39,044)						(23,815)
Dividends paid			(6,290)						(488)
Payments related to employee stock plan taxes			(4,531)						(3,380)
Groq, Inc.			(2,944)						—
Principal payments on property and equipment and intangible assets			(92)						(73)
Other			31						—
Net cash used in financing activities			(27,459)						(27,386)
Change in cash and cash equivalents			11,838						3,050
Cash and cash equivalents at beginning of period			10,605						8,589
Cash and cash equivalents at end of period			$	22,443					$	11,639

See accompanying Notes to Condensed Consolidated Financial Statements.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 - Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission, or SEC, Regulation S-X. The January 25, 2026, consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 25, 2026, as filed with the SEC, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation of results of operations and financial position, have been included. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 25, 2026.

Certain prior fiscal year balances have been reclassified to conform to the current period presentation.

Significant Accounting Policies

There have been no material changes to our significant accounting policies disclosed in Note 1 - Organization and Summary of Significant Accounting Policies, of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 25, 2026.

Fiscal Year

Fiscal year 2027 is a 53-week year, and fiscal year 2026 was a 52-week year, both ending on the last Sunday in January. The second quarters of fiscal years 2027 and 2026 were both 13-week quarters. The fourth quarter of fiscal year 2027 will be a 14-week quarter.

Principles of Consolidation

Our condensed consolidated financial statements include the accounts of NVIDIA Corporation and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from our estimates.

Recently Issued Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board, or FASB, issued a new accounting standard requiring disclosures of certain additional expense information on an annual and interim basis, including, among other items, the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included within each income statement expense caption, as applicable. We will adopt this standard in the fiscal year 2028 annual report. We do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements other than additional disclosures.

Note 2 - Stock-Based Compensation

We recognize stock-based compensation expense from grants of restricted stock units, or RSUs, performance stock units, or PSUs, and market-based PSUs, and issuances under our employee stock purchase plan, or ESPP.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Condensed Consolidated Statements of Income include stock-based compensation expense as follows:

			Three Months Ended												Six Months Ended
			Jul 26, 2026						Jul 27, 2025						Jul 26, 2026						Jul 27, 2025
			(In millions)
Cost of revenue			$	71					$	58					$	139					$	123
Research and development			1,551						1,191						3,010						2,254
Sales, general and administrative			405						375						805						722
Total			$	2,027					$	1,624					$	3,954					$	3,099

Equity Award Activity

The following is a summary of our equity award transactions under our equity incentive plans:

			RSUs, PSUs and Market-based PSUs Outstanding
			Number of Shares						Weighted Average Grant-Date Fair Value Per Share
			(In millions, except per share data)
Balance as of Jan 25, 2026			189						$	81.51
Granted			49						$	183.74
Vested			(63)						$	54.60
Canceled and forfeited			(7)						$	102.16
Balance as of Jul 26, 2026			168						$	120.41

As of July 26, 2026, aggregate unearned stock-based compensation expense was $19.4 billion, which is expected to be recognized over a weighted average period of 2.6 years for RSUs, PSUs, and market-based PSUs, and 0.9 years for ESPP.

Note 3 - Net Income Per Share

The following are the basic and diluted net income per share computations for the periods presented:

			Three Months Ended												Six Months Ended
			Jul 26, 2026						Jul 27, 2025						Jul 26, 2026						Jul 27, 2025
			(In millions, except per share data)
Numerator:
Net income			$	59,688					$	26,422					$	118,010					$	45,197
Denominator:
Basic weighted average shares			24,190						24,366						24,238						24,404
Dilutive impact of outstanding equity awards			95						166						100						167
Diluted weighted average shares			24,285						24,532						24,338						24,571
Net income per share:
Basic (1)			$	2.47					$	1.08					$	4.87					$	1.85
Diluted (2)			$	2.46					$	1.08					$	4.85					$	1.84
Anti-dilutive equity awards excluded from diluted net income per share			7						3						52						60

(1) Net income divided by basic weighted average shares.

(2) Net income divided by diluted weighted average shares.

Diluted net income per share was computed using the weighted average number of common and potentially dilutive shares outstanding during the period, using the treasury stock method.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 4 - Intangible Assets and Goodwill

The components of our intangible assets are as follows:

			Jul 26, 2026																		Jan 25, 2026
			Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
			(In millions)
Acquisition-related intangible assets			$	5,737					$	(2,974)					$	2,763					$	5,656					$	(2,580)					$	3,076
Patents and licensed technology			557						(322)						235						528						(298)						230
Total intangible assets			$	6,294					$	(3,296)					$	2,998					$	6,184					$	(2,878)					$	3,306

Amortization expense associated with intangible assets was $237 million and $84 million for the second quarter, and $470 million and $243 million for the first half, of fiscal years 2027 and 2026, respectively.

The following table outlines the estimated future amortization expense related to the net carrying amount of intangible assets as of July 26, 2026:

			Future Amortization Expense
			(In millions)
Fiscal Year:
2027 (the second half of fiscal year 2027)			$	482
2028			795
2029			642
2030			528
2031			468
2032 and thereafter			83
Total			$	2,998

In the first half of fiscal year 2027, goodwill increased by $293 million, which was allocated to our Compute & Networking reporting unit.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

+42.8+Note 5 - Cash Equivalents and Marketable Securities

Cash equivalents and marketable securities including debt and equity securities are measured at fair value using quoted prices in active markets for identical assets (Level 1) or for similar assets or use of other observable inputs (Level 2).

The following is a summary of cash equivalents and marketable securities:

			Jul 26, 2026
			Pricing Category						Cost or Amortized Cost						Unrealized Gain						Unrealized Loss						Estimated Fair Value						Reported as
																		Cash Equivalents						Marketable Debt Securities						Marketable Equity Securities						Other Assets
			(In millions)
Debt securities issued by the U.S. Treasury			Level 2						$	45,367					$	8					$	(54)					$	45,321					$	12,318					$	33,003					$	—					$	—
Debt securities issued by U.S. government agencies			Level 2						1,541						—						(2)						1,539						399						1,140						—						—
Money market funds			Level 1						8,633						—						—						8,633						8,633						—						—						—
Publicly-held equity securities (1) (2)			Level 1																								36,934						—						—						31,977						4,957
Publicly-held equity securities (1) (3)			Level 2																								10,806						—						—						10,806						—
Total									$	55,541					$	8					$	(56)					$	103,233					$	21,350					$	34,143					$	42,783					$	4,957

(1) Included $36.9 billion of investments that are subject to short-term lock-up restrictions on the ability to sell.

(2) The long-term portion of publicly-held equity securities, which are subject to lock-up restrictions through December 2027 of $5.0 billion as of July 26, 2026, was included in Other assets.

(3) Included investments in unregistered warrants and preferred stock convertible to common stock in public companies.

Publicly-held equity securities are subject to market price volatility. Net unrealized gains on investments in publicly-held equity securities held at period end were $1.5 billion and $12.5 billion for the second quarter and first half of fiscal year 2027, respectively. Net unrealized gains on investments in publicly-held equity securities held at period end were $1.9 billion and $1.7 billion for the second quarter and first half of fiscal year 2026, respectively.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

			Jan 25, 2026
			Pricing Category						Cost or Amortized Cost						Unrealized Gain						Unrealized Loss						Estimated Fair Value						Reported as
																		Cash Equivalents						Marketable Debt Securities						Marketable Equity Securities						Other Assets
			(In millions)
Debt securities issued by the U.S. Treasury			Level 2						$	21,635					$	77					$	(3)					$	21,709					$	—					$	21,709					$	—					$	—
Corporate debt securities			Level 2						15,410						92						(3)						15,499						345						15,154						—						—
Debt securities issued by U.S. government agencies			Level 2						2,157						4						—						2,161						—						2,161						—						—
Certificates of deposit			Level 2						110						—						—						110						110						—						—						—
Foreign government bonds			Level 2						40						1						—						41						—						41						—						—
Money market funds			Level 1						7,830						—						—						7,830						7,830						—						—						—
Publicly-held equity securities (1) (2)			Level 1																								17,726						—						—						12,886						4,840
Total									$	47,182					$	174					$	(6)					$	65,076					$	8,285					$	39,065					$	12,886					$	4,840

(1) Included $10.5 billion of investments that are subject to short-term lock-up restrictions on the ability to sell.

(2) The long-term portion of publicly-held equity securities, which are subject to lock-up restrictions through December 2027 of $4.8 billion as of January 25, 2026, was included in Other assets.

As of July 26, 2026, and January 25, 2026, debt securities of $42.0 billion and $13.1 billion, respectively, in a continuous loss position had been so for less than 12 months, and the related unrealized losses were not significant.

As of July 26, 2026, the estimated fair values of debt securities included in cash equivalents and marketable debt securities were $46.9 billion, consisting of $41.0 billion due in less than one year and $5.9 billion due in one to five years.

4Note 6 - Non-marketable Securities

Non-marketable Equity Securities

Our non-marketable equity securities are primarily in privately-held companies carried at cost less impairment, and adjusted for observable price changes. We value investments using observable comparable transactions and other inputs including volatility, expected time to liquidity, the risk-free rate, and security-specific rights and obligations.

Adjustments to the carrying value of privately-held securities:

			Three Months Ended												Six Months Ended
			Jul 26, 2026						Jul 27, 2025						Jul 26, 2026						Jul 27, 2025
			(In millions)
Balance at beginning of period			$	42,336					$	3,240					$	22,251					$	3,387
Adjustments related to non-marketable equity securities:
Net additions			13,106						299						31,005						948
Unrealized gains (1)			4,900						267						7,504						330
Reclassification (2)			(12,323)						(5)						(12,712)						(848)
Impairments and unrealized losses (1)			(121)						(2)						(150)						(18)
Balance at end of period			$	47,898					$	3,799					$	47,898					$	3,799

(1) Unrealized gains, losses, and impairments are recognized in Other income, net, in the Condensed Consolidated Statements of Income.

(2) Included reclassifications primarily related to marketable securities following public market trading.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Non-marketable equity securities had cumulative gross unrealized gains of $9.1 billion and $661 million, and cumulative gross unrealized losses and impairments of $250 million and $93 million as of July 26, 2026, and July 27, 2025, respectively.

Equity Method Investments

We had $3.3 billion of investments in infrastructure financiers accounted for using the equity method as of July 26, 2026. Those equity method investments deemed to be variable interest entities, or VIEs, had a maximum loss exposure, including carrying values and future committed amounts, of $4.7 billion as of July 26, 2026. We have determined we are not the primary beneficiary of our VIE investments and, therefore, do not consolidate the VIEs in our consolidated financial statements. Income from equity method investments is recognized in Other income, net, and was not significant for the second quarter and first half of fiscal year 2027.

Note 7 - Supplemental Financial Statement Information

We refer to customers who purchase products directly from NVIDIA as direct customers, such as add-in board manufacturers, or AIBs, distributors, original design manufacturers, or ODMs, original equipment manufacturers, or OEMs, cloud service providers, or CSPs, AI model makers, and system integrators. Certain direct customers may use either internal resources or third-party system integrators to complete their build. Five direct customers accounted for 22%, 14%, 13%, 11%, and 10% of our accounts receivable balance as of July 26, 2026. Three direct customers accounted for 25%, 18%, and 13% of our accounts receivable balance as of January 25, 2026.

Payment from customers is generally due shortly after delivery of our products. In certain cases, for investment-grade customer purchases, we have and may in the future provide longer payment terms ranging from 90 days up to one year to assist customers with large data center builds depending on size.

Certain balance sheet components were as follows:

			Jul 26, 2026						Jan 25, 2026
Inventories:			(In millions)
Raw materials			$	11,341					$	3,807
Work in process			13,377						8,822
Finished goods			6,857						8,774
Total inventories (1)			$	31,575					$	21,403

(1) We recognized inventory provisions of $784 million and $886 million for the second quarter, and $1.6 billion and $3.2 billion for the first half, of fiscal years 2027 and 2026, respectively, in Cost of revenue.

Property and Equipment:

Property, equipment, and intangible assets acquired but not paid for in the first half of fiscal years 2027 and 2026 were $1.2 billion and $1.1 billion, respectively.

			Jul 26, 2026						Jan 25, 2026
Accrued and Other Current Liabilities:			(In millions)
Customer program accruals			$	7,391					$	5,318
Taxes payable			5,206						2,669
Deferred revenue (1)			4,616						1,379
Product warranty			2,938						2,807
Excess inventory purchase obligations (2)			2,138						2,739
Accrued payroll and related expenses			1,206						1,146
Accrued purchase consideration (3)			986						3,921
Other			2,479						1,373
Total accrued and other current liabilities			$	26,960					$	21,352

(1) Included customer advances and unearned revenue primarily related to hardware and software support, and license and development arrangements. The balance as of July 26, 2026, and January 25, 2026, included $2.8 billion and $160 million of customer advances, respectively.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

(2) We recognized $201 million and $137 million for the second quarter, and $501 million and $3.1 billion for the first half, of fiscal years 2027 and 2026, respectively, in Cost of revenue.

(3) Related to the Groq, Inc. non-exclusive license agreement.

			Jul 26, 2026						Jan 25, 2026
Other Long-Term Liabilities:			(In millions)
Income tax payable (1)			$	5,602					$	3,958
Deferred revenue (2)			1,796						1,193
Deferred income tax			1,619						1,774
Other			1,901						381
Total other long-term liabilities			$	10,918					$	7,306

(1) Primarily comprised of unrecognized tax benefits and related interest and penalties.

(2) Included unearned revenue related to hardware and software support.

Deferred Revenue

The following table shows the changes in short- and long-term deferred revenue during the first half of fiscal years 2027 and 2026:

			Six Months Ended
			Jul 26, 2026						Jul 27, 2025
			(In millions)
Balance at beginning of period			$	2,572					$	1,813
Deferred revenue additions (1)			17,709						8,275
Revenue recognized (2)			(13,869)						(8,053)
Balance at end of period			$	6,412					$	2,035

(1) Included $15.6 billion and $7.5 billion of customer advances for the first half of fiscal years 2027 and 2026, respectively.

(2) Included $13.0 billion and $7.5 billion related to customer advances for the first half of fiscal years 2027 and 2026, respectively.

We recognized revenue of $758 million and $479 million in the first half of fiscal years 2027 and 2026, respectively, that was included in the prior year-end deferred revenue balance.

As of July 26, 2026, revenue related to remaining performance obligations from contracts greater than one year in length was $3.2 billion, which included $3.0 billion from deferred revenue and $244 million that has not yet been billed or recognized as revenue. Approximately 39% of revenue from contracts greater than one year in length will be recognized over the next twelve months.

Other Income, Net

Other income, net, consisted of the following:

			Three Months Ended												Six Months Ended
			Jul 26, 2026						Jul 27, 2025						Jul 26, 2026						Jul 27, 2025
			(In millions)
Interest income			$	496					$	592					$	1,037					$	1,108
Interest expense			(227)						(62)						(329)						(124)
Gains from equity securities, net			7,771						2,247						23,707						2,073
Other			(267)						(11)						(275)						(18)
Other income, net			$	7,773					$	2,766					$	24,140					$	3,039

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 8 - Derivative Financial Instruments

Foreign Currency Derivatives

We primarily utilize foreign currency forward contracts to mitigate the impact of foreign currency exchange rate movements on our operating expenses. These foreign currency forward contracts for operating expenses are designated as accounting hedges. Gains or losses on the contracts are recognized in Accumulated other comprehensive income or loss and reclassified to Operating expenses when the related operating expenses are recognized in earnings. During the first half of fiscal years 2027 and 2026, the impact of foreign currency forward contracts designated as accounting hedges on other comprehensive income or loss was not significant and all such instruments were determined to be highly effective.

We also entered into foreign currency forward contracts to mitigate the impact of foreign currency movements on monetary assets and liabilities. For our foreign currency contracts for assets and liabilities, the change in fair value of these non-designated contracts offsets the change in fair value of the hedged foreign currency-denominated monetary assets and liabilities, and is recognized in Other income, net. The fair values of our foreign currency contracts were not significant as of July 26, 2026, and January 25, 2026.

As of July 26, 2026, all foreign currency contracts mature within 18 months.

The gains and losses of our foreign currency contracts were not significant for the second quarter and first half of fiscal years 2027 and 2026.

Land, Power, and Shell Guarantees for AI Clouds

We entered into land, power, and shell guarantees for select AI cloud partners’ data center lease obligations in the event of their default. The guarantees are classified as credit derivatives, the fair values of which were not significant, with changes in fair values recognized in Other income, net.

Public Company Warrants

In the second quarter of fiscal year 2027, we received warrants to purchase shares of publicly-traded common stock with terms of three to five years. These warrants are classified as equity derivatives, initially recognized within Other assets, with the corresponding benefit substantially deferred. Subsequent valuation changes are recognized in Other income, net. As of July 26, 2026, the fair values of the equity derivatives, a Level 3 measurement, were $824 million.

Derivative Financial Instrument Notional Values

The table below presents the notional values of our derivatives outstanding:

			Jul 26, 2026						Jan 25, 2026
			(In millions)
Foreign currency contracts designated as accounting hedges			$	2,162					$	1,765
Not designated as accounting hedges:
Foreign currency contracts			$	2,252					$	2,332
Land, power, and shell guarantees for AI clouds (1)			$	3,529					$	3,530
Public company warrants			$	4,800					$	—
Equity forward contract			$	1,000					$	—

(1) The maximum gross exposure under all agreements is reduced as the partners make payments to the lessors over terms ranging from five to seven years. The partners have placed $712 million in escrow to partially mitigate our potential exposure, which is not reflected in the notional value.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 9 - Debt

						Expected Remaining Term (years)						Effective Interest Rate
												Jul 26, 2026						Jan 25, 2026
																		(In millions)
3.20% Notes Due 2026						0.1						3.31%						$	1,000					$	1,000
4.25% Notes Due 2028						1.9						4.39%						3,500						—
1.55% Notes Due 2028						1.9						1.64%						1,250						1,250
4.35% Notes Due 2029						2.9						4.45%						3,500						—
2.85% Notes Due 2030						3.7						2.93%						1,500						1,500
4.50% Notes Due 2031						4.9						4.60%						4,000						—
2.00% Notes Due 2031						4.9						2.09%						1,250						1,250
4.75% Notes Due 2033						6.9						4.82%						3,500						—
4.95% Notes Due 2036						9.9						5.01%						4,000						—
3.50% Notes Due 2040						13.7						3.54%						1,000						1,000
5.55% Notes Due 2046						19.9						5.61%						3,000						—
3.50% Notes Due 2050						23.7						3.54%						2,000						2,000
5.625% Notes Due 2056						29.9						5.66%						3,500						—
3.70% Notes Due 2060						33.7						3.73%						500						500
Unamortized debt discount and issuance costs																		(134)						(32)
Net carrying amount																		$	33,366					$	8,468
Less short-term portion																		(1,000)						(999)
Total long-term portion																		$	32,366					$	7,469

In June 2026, we issued an aggregate of $25.0 billion of senior unsecured notes across seven tranches for general corporate purposes.

As of July 26, 2026, and January 25, 2026, the estimated fair value of debt was $31.4 billion and $7.5 billion, respectively. The estimated fair values are based on Level 2 inputs.

Our notes are unsecured senior obligations. Existing and future liabilities of our subsidiaries will be effectively senior to the notes. Our notes pay interest semi-annually. We may redeem each of our notes prior to maturity, subject to a make-whole premium. The maturity dates of the notes are stated by calendar year.

As of July 26, 2026, we complied with the required covenants under the outstanding notes.

As of July 26, 2026, our commercial paper program had a capacity of $25.0 billion, with no amounts outstanding.

Note 10 - Commitments and Contingencies

Commitments

We entered into strategic commitments across our supply, infrastructure, and partner ecosystems to capitalize on future growth opportunities and support our business.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Future commitments by fiscal year as of July 26, 2026, were as follows:

			Remainder of 2027						2028						2029						2030						2031						2032 and thereafter						Total
			(In billions)
Supply and capacity			$	92					$	87					$	88					$	6					$	5					$	1					$	279
Cloud service agreements			3						8						7						6						4						1						29
Data center leases not commenced			—						1						1						2						1						20						25
Equity investments			18						3						2						2						—						—						25
Capital expenditures			7						1						—						—						—						—						8
Total			$	120					$	100					$	98					$	16					$	10					$	22					$	366

Supply and capacity – We have partnered with our extensive network to secure the necessary supply and critical components needed to meet demand for the next several years, increasing supply commitments from $119 billion last quarter to $279 billion as of July 26, 2026. These supply commitments are for our data center infrastructure systems, primarily memory and manufacturing facilities, to produce our products for long-term demand across current and future product architectures. We enter into agreements with our suppliers that allow them to procure inventory based upon our defined criteria, and in certain instances, these agreements may be cancelable, rescheduled, or adjustable for our business needs prior to placing firm orders. Changes to these agreements may result in additional costs.

Cloud service agreements – These commitments provide the cloud infrastructure to support our research and development of our open models, such as NVIDIA Nemotron, Cosmos, and GR00T, and our autonomous vehicle software.

Data center leases not commenced – These leases will be primarily used for engineering, product design, and testing of our compute chips, networking products, and systems. They are expected to begin between the third quarter of fiscal year 2027 and fiscal year 2033 and have terms up to twenty years. Many of the expected lease start dates are subject to and dependent on timing of facility construction completion. Refer to Note 14 of the Notes to Condensed Consolidated Financial Statements for additional information on our leases that have commenced and are recognized in our financial statements.

Equity investments – We committed to make certain equity investments in AI model makers, infrastructure financiers, and other private companies, subject to certain contingencies.

Capital expenditures – Our capital expenditures primarily include obligations for data center equipment and infrastructure used for engineering and manufacturing operations.

Additional Commitments and Guarantees

Securing land, power, and shell for data centers is a critical phase in the AI infrastructure buildout. We have entered into arrangements to assist select customers with securing the land, power, shell, and data center capacity needed to support their growth. These strategic commitments and guarantees may impact our financial results and are dependent on the performance of our customers and partners.

Additional Commitments

Future commitments by fiscal year as of July 26, 2026, were as follows:

			Remainder of 2027						2028						2029						2030						2031						2032 and thereafter						Total
			(In billions)
AI cloud agreements			$	—					$	6					$	8					$	7					$	6					$	9					$	36
Data center leases not commenced for third party			—						—						1						1						1						17						20
Total			$	—					$	6					$	9					$	8					$	7					$	26					$	56

AI cloud agreements – We have partnered with leading AI clouds to enable broader access to our AI infrastructure to serve AI startups, model builders, enterprises, research organizations and sovereign customers. Under these agreements, AI clouds procure our data center infrastructure products and we commit to cloud service agreements, which the AI clouds can unilaterally stop providing to us and sell to third-party customers at more advantageous rates. Our commitments

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

decrease as capacity is used by third-party customers or by us for our research and development efforts. If certain criteria are met, we will participate in revenue share generated by the AI clouds from third-party customers.

Data center leases not commenced for third party – We have entered into data center leases with terms of approximately fifteen years that are expected to commence between fiscal year 2028 and fiscal year 2029. The expected lease start dates are subject to and dependent on timing of construction completion. We expect to reassign these data center leases to third parties. Refer to Note 14 of the Notes to Condensed Consolidated Financial Statements for additional information on our leases.

Guarantees

Land, power, and shell guarantees for AI clouds – We entered into land, power, and shell guarantees for select AI cloud partners’ data center lease obligations in the event of their default. The maximum gross exposure under all agreements is $3.5 billion. Refer to Note 8 of the Notes to Condensed Consolidated Financial Statements for additional information on our derivatives.

SB Energy Corp. guarantees – In August 2026, we entered into guarantees, capped at a total of $105 billion, to provide credit support on a land, power, and shell buildout with affiliates of SB Energy Corp. (SB Energy) on behalf of a customer, an affiliate of OpenAI Group PBC (OpenAI), related to leases for approximately 4.25 gigawatts of IT load in the aggregate at SB Energy’s PORTS Technology Campus in Pike County, Ohio. Each guarantee generally becomes effective upon commencement of the applicable lease, with corresponding guarantee amounts increasing, as each of the nine phases of data center construction is completed, the first of which is expected in fiscal year 2029. Our payment obligations under the guarantees are triggered upon certain tenant defaults and the amount is expected to decrease over the course of each phase’s 20-year lease term. Our guarantees are limited to defined portions of lease and power payments and not the full cost of the site or all of the tenant’s obligations. The guarantees terminate upon certain events, including OpenAI achieving a satisfactory credit rating or after each respective lease term has completed. In exchange for the guarantees, the site will exclusively host NVIDIA AI infrastructure, subject to limited exceptions. We also hold an option, exercisable in our sole discretion, to provide additional credit support in phases for approximately 3.8 additional gigawatts as the site scales.

The following table summarizes the maximum gross exposure related to our guarantees, including the SB Energy Corp. guarantees signed in August 2026 (in billions):

Land, power, and shell guarantees for AI clouds			$	3.5
SB Energy Corp. guarantees			105.0
Total			$	108.5

Accrual for Product Warranty Liabilities

The estimated product returns and product warranty activity consisted of the following:

			Three Months Ended												Six Months Ended
			Jul 26, 2026						Jul 27, 2025						Jul 26, 2026						Jul 27, 2025
			(In millions)
Balance at beginning of period			$	2,948					$	2,080					$	2,807					$	1,290
Additions			391						220						720						1,090
Utilization			(401)						(156)						(589)						(236)
Balance at end of period			$	2,938					$	2,144					$	2,938					$	2,144

For the second quarter and first half of fiscal years 2027 and 2026, the additions in product warranty liabilities primarily related to our Compute & Networking segment.

We have provided indemnities for matters such as tax, product, and employee liabilities. We have included intellectual property indemnification provisions in our technology-related agreements with third parties. Maximum potential future payments cannot be estimated because many of these agreements do not have a maximum stated liability. We have not recognized any liability in our Condensed Consolidated Financial Statements for such indemnifications.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Litigation

Securities Class Action and Derivative Lawsuits

The plaintiffs in the putative securities class action lawsuit, captioned 4:18-cv-07669-HSG, initially filed on December 21, 2018 in the United States District Court for the Northern District of California, and titled In Re NVIDIA Corporation Securities Litigation, filed an amended complaint on May 13, 2020. The amended complaint asserted that NVIDIA and certain NVIDIA executives violated Section 10(b) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and SEC Rule 10b-5, by making materially false or misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand between May 10, 2017 and November 14, 2018. Plaintiffs also alleged that the NVIDIA executives who they named as defendants violated Section 20(a) of the Exchange Act. Plaintiffs sought class certification, an award of unspecified compensatory damages, an award of reasonable costs and expenses, including attorneys’ fees and expert fees, and further relief as the Court may deem just and proper. On March 2, 2021, the district court granted NVIDIA’s motion to dismiss the complaint without leave to amend, entered judgment in favor of NVIDIA and closed the case. On March 30, 2021, plaintiffs filed an appeal from judgment in the United States Court of Appeals for the Ninth Circuit, case number 21-15604. On August 25, 2023, a majority of a three-judge Ninth Circuit panel affirmed in part and reversed in part the district court’s dismissal of the case, with a third judge dissenting on the basis that the district court did not err in dismissing the case. NVIDIA filed a petition for a writ of certiorari on March 4, 2024. On June 17, 2024, the Supreme Court of the United States granted NVIDIA’s petition for a writ of certiorari. After briefing and argument, the Supreme Court dismissed NVIDIA’s writ of certiorari as improvidently granted on December 11, 2024, and issued judgment on January 13, 2025. On February 20, 2025, the Ninth Circuit’s judgment, entered August 25, 2023 and corrected August 28, 2023, took effect, and the case was remanded to the district court for further proceedings. On March 25, 2026, the district court granted plaintiffs’ motion for class certification and certified a class of investors consisting of all persons or entities who purchased or otherwise acquired NVIDIA common stock between August 10, 2017, and November 15, 2018, inclusive, excluding certain persons and entities, such as NVIDIA’s officers and directors, and members of their immediate families, among others.

The putative derivative lawsuit pending in the United States District Court for the Northern District of California, captioned 4:19-cv-00341-HSG, initially filed January 18, 2019 and titled In re NVIDIA Corporation Consolidated Derivative Litigation, was stayed pending resolution of the plaintiffs’ appeal in the In Re NVIDIA Corporation Securities Litigation action. On February 22, 2022, the court administratively closed the case, but stated that it would reopen the case once the appeal in the In Re NVIDIA Corporation Securities Litigation action is resolved. The case has not yet been reopened by the court. The lawsuit asserts claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty, unjust enrichment, waste of corporate assets, and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs are seeking unspecified damages and other relief, including reforms and improvements to NVIDIA’s corporate governance and internal procedures.

The putative derivative actions initially filed September 24, 2019 and pending in the United States District Court for the District of Delaware, Lipchitz v. Huang, et al. (Case No. 1:19-cv-01795-MN) and Nelson v. Huang, et al. (Case No. 1:19-cv-01798-MN), were stayed pending resolution of the plaintiffs’ appeal in the In Re NVIDIA Corporation Securities Litigation action. On March 7, 2025, after the Supreme Court issued its judgment dismissing the Company’s petition for writ of certiorari as improvidently granted in the In Re NVIDIA Securities Litigation action, the district court adopted the parties’ stipulation to extend the stay until the final and complete resolution of the In Re NVIDIA Corporation Securities Litigation action. The lawsuits assert claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty, unjust enrichment, insider trading, misappropriation of information, corporate waste and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs seek unspecified damages and other relief, including disgorgement of profits from the sale of NVIDIA stock and unspecified corporate governance measures.

Another putative derivative action was filed on October 30, 2023 in the Court of Chancery of the State of Delaware, captioned Horanic v. Huang, et al. (Case No. 2023-1096-KSJM). This lawsuit asserts claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty and insider trading based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs seek unspecified damages and other relief, including disgorgement of profits from the sale of NVIDIA stock and reform of unspecified corporate governance measures. On August 11, 2025, the court granted the parties’ stipulation to voluntarily dismiss with prejudice plaintiff City of Westland Police and Fire Retirement System. This derivative matter is stayed pending the final resolution of In Re NVIDIA Corporation Securities Litigation action.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Accounting for Loss Contingencies

As of July 26, 2026, there are no accrued contingent liabilities associated with the legal proceedings described above based on our belief that liabilities, while reasonably possible, are not probable. Further, any possible loss or range of loss in these matters cannot be reasonably estimated at this time. We are engaged in legal actions not described above arising in the ordinary course of business, as well as regulatory and government inquiries and investigations, and, while there can be no assurance of favorable outcomes, we believe that the ultimate outcome of these matters will not have a material adverse effect on our operating results, liquidity or financial position. These matters are subject to inherent uncertainties and if the ultimate outcome is unfavorable, there exists the possibility of a material adverse impact on our operating results, liquidity or financial position in the period the outcome becomes estimable and probable.

Note 11 - Income Taxes

Income tax expense was $11.8 billion and $4.8 billion for the second quarter, and $23.4 billion and $7.9 billion for the first half, of fiscal years 2027 and 2026, respectively. Income tax as a percentage of income before income tax was 16.5% and 15.3% for the second quarter, and 16.5% and 14.9% for the first half, of fiscal years 2027 and 2026, respectively.

The effective tax rate increased primarily due to a lower percentage of tax benefits from stock-based compensation, foreign-derived deduction eligible income, and the U.S. federal research tax credit relative to the increase in income before income tax.

Our effective tax rates for the first half of fiscal years 2027 and 2026 were lower than the U.S. federal statutory rate of 21% primarily due to tax benefits from foreign-derived deduction eligible income, income earned in jurisdictions that were subject to taxes at rates lower than the U.S. federal statutory tax rate, stock-based compensation, and the U.S. federal research tax credit.

While we believe that we have adequately provided for all uncertain tax positions, or tax positions where we believe it is not more-likely-than-not that the position will be sustained upon review, amounts asserted by tax authorities could be greater or less than our accrued position. Accordingly, our provisions on federal, state, and foreign tax-related matters to be recognized in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved with the respective tax authorities.

We are currently under examination by the Internal Revenue Service for our fiscal years 2023 and 2024.

Note 12 - Shareholders’ Equity

Capital Return Program

We repurchased 94 million and 67 million shares of our common stock for $19.7 billion and $9.7 billion during the second quarter of fiscal years 2027 and 2026, respectively, and 203 million and 193 million shares of our common stock for $39.8 billion and $24.2 billion during the first half of fiscal years 2027 and 2026, respectively.

On May 18, 2026, our Board of Directors approved an additional $80.0 billion in share repurchase authorization, without expiration. As of July 26, 2026, we were authorized, subject to certain specifications, to repurchase up to $99.3 billion of our common stock.

We paid cash dividends to our shareholders of $6.0 billion and $244 million during the second quarter, and $6.3 billion and $488 million during the first half, of fiscal years 2027 and 2026, respectively. On May 18, 2026, we increased our quarterly cash dividend from $0.01 per share to $0.25 per share.

The payment of future cash dividends is subject to our Board of Directors’ continuing determination that the declaration of dividends is in the best interests of our shareholders.

Note 13 - Segment Information

Our Chief Executive Officer is our chief operating decision maker, or CODM, and reviews financial information presented on an operating segment basis for purposes of making decisions and assessing financial performance. Our CODM assesses operating performance of each segment based on regularly provided segment revenue and segment operating income. Operating results by segment include costs or expenses directly attributable to each segment, and costs or expenses that are leveraged across our unified architecture and therefore allocated between our two segments. Our CODM reviews expenses on a consolidated basis, and expenses attributable to each segment are not regularly provided to our CODM.

The Compute & Networking segment includes our Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions including software.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

The Graphics segment includes GeForce GPUs for gaming and PCs, and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics.

Certain expenses are not allocated to either Compute & Networking or Graphics for purposes of making operating decisions or assessing financial performance. The expenses include stock-based compensation expense, corporate infrastructure and support costs, acquisition-related and other costs, and other non-recurring charges and benefits that our CODM deems to be enterprise in nature.

Our CODM does not review any information regarding total assets on a reportable segment basis. There are no intersegment transactions. The accounting policies for segment reporting are the same as for our consolidated financial statements. The table below presents details of our reportable segments.

			Compute & Networking						Graphics						Total
			(In millions)
Three Months Ended Jul 26, 2026
Revenue			$	88,299					$	7,922					$	96,221
Other segment items (1)			25,603						4,023						29,626
Operating income			$	62,696					$	3,899					$	66,595
Three Months Ended Jul 27, 2025
Revenue			$	41,331					$	5,412					$	46,743
Other segment items (1)			12,968						3,170						16,138
Operating income			$	28,363					$	2,242					$	30,605
Six Months Ended Jul 26, 2026
Revenue			$	162,850					$	14,987					$	177,837
Other segment items (1)			46,819						8,147						54,966
Operating income			$	116,031					$	6,840					$	122,871
Six Months Ended Jul 27, 2025
Revenue			$	80,920					$	9,885					$	90,805
Other segment items (1)			30,503						6,003						36,506
Operating income			$	50,417					$	3,882					$	54,299

(1) Other segment items primarily include product costs and inventory provisions, compensation and benefits excluding stock-based compensation expense, computing infrastructure expenses, and engineering development costs.

Depreciation and amortization expense attributable to our Compute & Networking segment was $642 million and $383 million for the second quarter, and $1.2 billion and $684 million for the first half, of fiscal years 2027 and 2026, respectively. Depreciation and amortization expense attributable to our Graphics segment was $204 million and $148 million for the second quarter, and $399 million and $252 million for the first half, of fiscal years 2027 and 2026, respectively. Acquisition-related intangible amortization expense is not allocated to either Compute & Networking or Graphics for purposes of making operating decisions or assessing financial performance.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Reconciliation of segment operating income to consolidated income before income tax for the second quarter and first half of fiscal years 2027 and 2026 was as follows:

			Three Months Ended												Six Months Ended
			Jul 26, 2026						Jul 27, 2025						Jul 26, 2026						Jul 27, 2025
			(In millions)
Segment operating income			$	66,595					$	30,605					$	122,871					$	54,299
Stock-based compensation expense			(2,027)						(1,624)						(3,954)						(3,099)
Unallocated operating expenses			(612)						(440)						(1,178)						(859)
Acquisition-related and other costs			(222)						(101)						(469)						(263)
Other income, net			7,773						2,766						24,140						3,039
Consolidated income before income tax			$	71,507					$	31,206					$	141,410					$	53,117

Revenue by geographic region is designated based on the location of the headquarters of direct customers. The end customer and shipping location may be different from our direct customers’ headquarters location.

			Three Months Ended												Six Months Ended
			Jul 26, 2026						Jul 27, 2025						Jul 26, 2026						Jul 27, 2025
			(In millions)
Geographic Revenue based upon Customer Headquarters Location:
United States			$	60,074					$	32,897					$	123,843					$	58,582
Taiwan			26,985						8,902						38,991						16,550
China (including Hong Kong)			7,880						3,985						12,430						13,644
Other			1,282						959						2,573						2,029
Total revenue			$	96,221					$	46,743					$	177,837					$	90,805

Revenue from sales to customers headquartered outside of the United States accounted for 38% and 30% of total revenue for the second quarter and first half of fiscal year 2027, respectively, and 30% and 35% of total revenue for the second quarter and first half of fiscal year 2026, respectively.

We refer to customers who purchase products directly from NVIDIA as direct customers, such as AIBs, distributors, ODMs, OEMs, CSPs, AI model makers, and system integrators. Certain direct customers may use either internal resources or third-party system integrators to complete their build. We refer to indirect customers as those who purchase products through our direct customers; indirect customers include CSPs, AI clouds, AI model makers, enterprises, and public sector entities. Our revenue is concentrated among a limited number of direct and indirect customers and this trend may continue.

For the second quarter of fiscal year 2027, one direct customer represented 16% of total revenue, which was primarily attributable to the Compute & Networking segment. For the first half of fiscal year 2027, three direct customers represented 16%, 15%, and 13% of total revenue, all of which was primarily attributable to the Compute & Networking segment.

For the second quarter of fiscal year 2026, two direct customers represented 23% and 16% of total revenue, all of which was primarily attributable to the Compute & Networking segment. For the first half of fiscal year 2026, two direct customers represented 20% and 15% of total revenue, all of which was primarily attributable to the Compute & Networking segment.

In the first quarter of fiscal year 2027, we changed our presentation of revenue by market platform, and the comparable periods were recast. During the second quarter of fiscal year 2027, we reclassified a company from AI Clouds, Industrial, & Enterprise (ACIE) to Hyperscale due to a change in their business model and recast the prior period revenue associated with this company.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

			Three Months Ended												Six Months Ended
			Jul 26, 2026						Jul 27, 2025						Jul 26, 2026						Jul 27, 2025
			(In millions)
Revenue by Market Platform
Data Center			$	89,023					$	41,096					$	164,269					$	80,208
Hyperscale			48,710						24,168						91,761						46,428
AI Clouds, Industrial, & Enterprise			40,313						16,928						72,508						33,780
Edge Computing			7,198						5,647						13,568						10,597
Total revenue			$	96,221					$	46,743					$	177,837					$	90,805

Note 14 - Leases

Our lease obligations primarily consist of operating leases for our data centers and offices, with lease periods expiring between fiscal years 2027 and 2075.

Future minimum lease obligations under our non-cancelable lease agreements as of July 26, 2026, were as follows:

			Operating Lease Obligations
			(In millions)
Fiscal Year:
2027 (the second half of fiscal year 2027)			$	354
2028			718
2029			715
2030			648
2031			586
2032 and thereafter			4,186
Total			7,207
Less imputed interest			1,713
Present value of net future minimum lease payments			5,494
Less short-term operating lease liabilities			509
Long-term operating lease liabilities			$	4,985

As of July 26, 2026, our operating leases have a weighted average remaining lease term of 10.9 years and a weighted average discount rate of 4.69%. As of January 25, 2026, our operating leases had a weighted average remaining lease term of 8.8 years and a weighted average discount rate of 4.38%.

Operating lease costs were $208 million and $109 million for the second quarter, and $379 million and $210 million for the first half, of fiscal years 2027 and 2026, respectively. Short-term, variable, and finance lease costs for the second quarter and first half of fiscal years 2027 and 2026 were not significant.

Other information related to leases was as follows:

			Six Months Ended
			Jul 26, 2026						Jul 27, 2025
			(In millions)
Supplemental cash flows information
Operating cash flow used for operating leases			$	353					$	200
Operating lease assets obtained in exchange for lease obligations			$	2,792					$	458