NVIDIA’s $108 Billion Revenue Guidance Precedes Results Amid Leadership Transition
Key Facts
NVIDIA set November 17 as the date to report results for the third quarter of its fiscal 2027, which ended October 25. Results are expected at about 1:20 p.m. Pacific time, followed by an investor call at 2 p.m. The upcoming report will test the company’s revenue guidance of $108.0 billion, plus or minus 2%. The company said the guidance assumes no data center computing revenue from China. The date follows a sudden leadership transition, with the board accepting Jensen Huang’s resignation as president and CEO and as a board member. The call is expected to cover both financial performance and the company’s direction under new interim leadership.
The revenue guidance is above the level the company achieved in the previous quarter, when revenue reached $96.2 billion in the second quarter of fiscal 2027. Revenue then rose 18% from the first quarter and 106% year over year, while diluted earnings per share under U.S. accounting standards came to $2.46. The comparison shows the scale of growth third-quarter results must match to come close to the official guidance. Data center revenue, the main driver of the company’s business in this context, was also $89.0 billion in the second quarter. Revenue in that segment rose 18% from the previous quarter and 117% from the same period a year earlier.
Excluding data center computing revenue from China was an explicit item in NVIDIA’s third-quarter outlook, making the guidance stand without an assumed contribution from that market. The restriction matters because the company set a specific revenue figure despite the absence of that assumed contribution, with actual results set to show how closely it came to the forecast. NVIDIA issued its guidance after recording strong growth in its data center business in the second quarter, with annual revenue up 117%. In March, Huang forecast that the company’s chip order backlog would reach $1 trillion by year-end. As the results date approaches, investors’ focus returns to demand and execution as the company’s leadership changes.
The company said the board accepted Huang’s resignation effective immediately and appointed Colette Kress interim CEO while she continues as CFO. Kress has served as executive vice president and CFO since 2013, according to the company’s filing with the Securities and Exchange Commission. Harvey C. Jones was appointed the board’s first chairman after serving as a director since 1993; the company said he previously served as CEO and chairman of the board at Synopsys. Kress said Huang had built the company’s foundation over 33 years and that she would continue working with the leadership team to serve customers, partners, developers and shareholders. The appointment announcement did not describe Jones as an independent board chairman.
The Associated Press reported that shares of some competitors rose on Thursday after Huang’s departure was announced, including Broadcom, Intel and AMD, amid expectations that customers might broaden their supplier diversification. But chipmakers’ shares fell in Friday’s session on November 13: NVIDIA fell 2%, Broadcom 5.1% and AMD 9%, according to the news agency. These moves place the leadership transition in the context of broader competition to meet demand for artificial intelligence, as investors watch for the possibility that customers will diversify their supply sources. The agency said NVIDIA alternates with Apple for the top spot among Wall Street’s most valuable companies and has invested heavily in other AI companies. The last NVIDIA closing price listed in EL7 data before the date of the article was $166.19 on November 12.
The board said it expects the company’s operations, commitments to customers and product roadmap to continue without interruption during the transition. The board has begun searching for a permanent CEO, considering internal and external candidates, without announcing a timetable for selecting a successor. NVIDIA says Kress will lead on an interim basis while retaining her financial responsibilities as the search for a permanent CEO continues. The November 17 report will be the first major financial milestone after the change, with the company set to report performance for the quarter ended October 25 and discuss results on a call at 2 p.m. Pacific time. Results are scheduled to be released at about 1:20 p.m. that day.