How to Analyse Nvidia Before Earnings
NVIDIA’s market capitalisation has risen from roughly $280 billion in late 2022 to a 2026 peak of roughly $5.7 trillion and now sits just below $5.5 trillion ahead of its earnings report, an increase of nearly 20-fold.
As of 20 May 2026, revenue is generated through its two market platforms: Data Center and Edge Computing.
(Source: LSEG, as of 14 August 2026. Calculations based on LSEG data)
(Past performance is not a reliable indicator of future results)
Earnings History
Across the 21 quarters shown, NVIDIA’s revenue exceeded analysts’ consensus mean estimate in 20 quarters, while EPS exceeded the consensus mean estimate in 19. Among the positive surprises, EPS was an average of 9.1% above consensus, while revenue was an average of 5.1% above consensus.
(Source: LSEG, as of 14 August 2026. Calculations based on LSEG data)
(Past performance is not a reliable indicator of future results)
Platform Growth
In the first fiscal quarter of 2027, Data Center revenue grew 92% year on year, followed by Edge Computing’s gain of 29%. The Data Center business accounted for $193.7 billion of its $215.9 billion in total revenue in fiscal year 2026, or 89.7%.
(Source: LSEG, as of 15 August 2026. Calculations based on LSEG data)
(Past performance is not a reliable indicator of future results)
Data Center represented 88.8% of NVIDIA’s total revenue in the first fiscal quarter of 2026. It stood at 87.9% in the second fiscal quarter of 2026 and has now risen for three consecutive quarters. Over the full period shown, its share has risen from 59.6% in the first fiscal quarter of 2024 to 92.2% in the first fiscal quarter of 2027.
(Source: LSEG, as of 15 August 2026. Calculations based on LSEG data)
(Past performance is not a reliable indicator of future results)
Free Cash Flow
NVIDIA’s trailing-12-month free cash flow rose from $3.8 billion at the end of 2022 to $119 billion in the fiscal first quarter of 2027. In the fiscal first quarter of 2027, quarterly free cash flow rose by 85.4% on a year-on-year basis to $48.5 billion from $26.2 billion.
(Source: LSEG, as of 14 August 2026. Calculations based on LSEG data)
(Past performance is not a reliable indicator of future results)
Options-Implied Earnings Range
Option prices can be used to calculate an implied trading range around an earnings announcement. Across the 12 announcements shown, 10-day at-the-money implied volatility produced an average one-standard-deviation range of ±11.9%, while the average absolute realised next-session move was 4.8%. The next-session share-price move remained within the calculated range in eleven cases and was outside it in only one.
The implied range was estimated using the 10-day at-the-money implied volatility observed at the last close before each report, scaled to the option’s 10-day term using implied volatility × √(10/365) and applied to the share price. This produces a one-standard-deviation range derived from option prices. It does not represent a forecast or indicate the direction of the share-price move.
(Source: LSEG (price data) and VolVue (implied volatility), as of 14 August 2026. Calculations based on LSEG and VolVue data)
(Past performance is not a reliable indicator of future results)
Valuation Metrics
As of 14 August 2026, NVIDIA’s forward price-to-earnings ratio, based on analysts’ estimates for the next 12 months, was 20.5. From July 2021 to August 2026, the average P/E was 35.6, and the median was 33.1, placing the 14 August observation below both measures for the period.
Historical valuation multiples provide context for how the market has priced the company over time. These comparisons do not indicate whether the shares are currently overvalued or undervalued.
(Source: LSEG, as of 14 August 2026. Calculations based on LSEG data)
(Past performance is not a reliable indicator of future results)
As of 14 August 2026, NVIDIA’s forward price-to-sales ratio, based on analysts’ consensus mean revenue estimates for the next 12 months, was 11.1. From July 2021 to August 2026, the average P/S ratio was 17.1, and the median was 16.9, placing the 14 August observation below both measures for the period.
(Source: LSEG, as of 14 August 2026. Calculations based on LSEG data)
(Past performance is not a reliable indicator of future results)
Over the period shown, NVIDIA’s trailing-12-month EPS recorded an average year-on-year growth rate of 108%, with a median of 77%. Revenue growth averaged 75%, with a median of 65%.
In the first fiscal quarter of 2027, EPS growth of 74.9% was below the historical average and the median. Revenue growth of 70.7% was above its historical median but below the average.
(Source: LSEG, as of 14 August 2026. Calculations based on LSEG data)
(Past performance is not a reliable indicator of future results)
Conclusion
NVIDIA’s earnings history, revenue growth by market platform, revenue mix, free cash flow, options-implied ranges and valuation multiples provide historical context ahead of the company’s fiscal second-quarter results.
As of 14 August 2026, NVIDIA’s forward P/E and P/S ratios were below their respective historical averages and medians for the periods shown. These measures describe historical observations and do not provide a forecast for the next earnings announcement. Past performance is not a reliable indicator of future results.