Nvidia added $49.5 billion of revenue in six months. It also added $35.3 billion to accounts receivable, leaving a larger balance recorded as receivables rather than collected cash.
The surface reading of the latest 10-Q is still remarkable. Revenue reached $96.2 billion, up 105.9% from the comparable six-month period, while gross margin widened to 75.0% and operating margin to 66.2%. Nvidia is selling more of the thing everyone wants, and keeping more of each dollar.
The cash conversion is less tidy. Operating cash flow rose 74.0%, well below revenue growth, and the balance sheet expanded alongside the sales surge: inventory grew 111.0%, while accounts receivable grew 126.8%. Capex rose too, though more slowly than revenue. The filing does not turn those figures into a warning label. It does show that the sales surge coincided with more inventory, more infrastructure spending, and more receivables to collect.
Nvidia gives one concrete explanation for the receivables increase:
"Cash provided by operating activities increased in the first half of fiscal year 2027 compared to the first half of fiscal year 2026 due to higher revenue, partially offset by an increase in accounts receivable due to extended payment terms on large multi-quarter agreements with certain investment-grade customers."
NVIDIA 10-Q, Aug. 26, 2026
Those customers are described as investment-grade, and the agreements span multiple quarters. That supplies a reason for the collection lag, but it does not make the $63.1 billion balance disappear. The payment terms are part of the timing behind the receivables increase.
Inventory adds a second physical receipt. It grew slightly faster than revenue, so Nvidia is carrying more product as the business scales. The company also spent $4.4 billion on capex in the six months and $7.1 billion on research and development, with compute infrastructure doing much of the lifting in R&D.
Management says the engine remains AI demand. Data Center revenue rose 117% from a year ago to $89.0 billion, driven by the ramp of Blackwell Ultra infrastructure, while ACIE revenue increased 138% on demand from AI-native companies, enterprises, sovereign customers, and hyperscalers using AI clouds. The growth is not hiding in a small side business.
The investment bill is rising with that demand. Nvidia said the first-half increase in R&D was driven primarily by a 120% increase in compute infrastructure and higher compensation tied to employee growth and pay increases:
"The increases in research and development expenses for the second quarter and first half of fiscal year 2027 were primarily driven by a 127% and 120% increase in compute infrastructure, respectively, and a 30% increase in each fiscal year 2027 period in compensation and benefits, including stock-based compensation, reflecting employee growth and compensation increases."
NVIDIA 10-Q, Aug. 26, 2026
That is the filing’s central trade-off in plain numbers: operating leverage alongside a cash cycle and investment base that are expanding quickly too. Nvidia’s annual history supplies a little context. Revenue reached $215.9 billion in fiscal 2026 after rising 65.5%, but operating margin fell to 60.4% from 62.4% the year before. Growth has remained huge; the margin path has not been a straight line.
At the latest close, Nvidia was worth $5.1 trillion and traded at 42.8 times earnings. Those figures put the valuation in view, while the 10-Q leaves a narrower operating question: how much of the next wave converts into cash without another proportional jump in receivables and inventory?
Nvidia’s next quarterly report is the next place to compare those balances with revenue and operating cash flow, and to see whether the extended payment terms still explain the collection gap. More AI revenue, more margin, and more waiting for the money.
Source: NVIDIA 10-Q filed Aug. 26, 2026, for the six months ended July 26, 2026.