REVENUEBeat +4.3%
EPSBeat +6.2%
Actuals vs. estimates
| Metric | Actual | Consensus | Surprise |
|---|---|---|---|
| Revenue(GAAP, summary table) | $96.22B | $92.27B | ▲ Beat +4.3% |
| EPS(Non-GAAP diluted) | $2.22 | $2.09 | ▲ Beat +6.2% |
Revenue — API Ninjas actual matches multiple Quartr consolidated revenue values
EPS — API Ninjas actual matches multiple Quartr EPS bases
Verdict
- Revenue of $96,221m beat the API Ninjas estimate of $92,271m by 4.3%, and non-GAAP diluted EPS of $2.22 beat the $2.09 estimate by 6.2% -- a clean beat on both lines.
- Data Center did all the work: $89.0bn of the $96.2bn total, up 117% year over year, with Vera Rubin now in full production.
- Gross margin of 75.0% on both GAAP and non-GAAP bases is up 2.6 points year over year, so the revenue doubling came with better economics, not worse.
- The Q3 guide of $108.0bn plus or minus 2% implies another 12% sequential step and excludes any China Data Center compute revenue.
Key metrics
| Metric | Reported | Prior year | Change |
|---|---|---|---|
| Revenue | $96,221m | $46,743m | +106% |
| Data Center revenue | $89.0bn | — | +117% yoy |
| GAAP gross margin | 75.0% | 72.4% | +2.6 pts |
| GAAP operating income | $63,734m | $28,440m | +124% |
| Non-GAAP diluted EPS | $2.22 | $1.01 | +120% |
| Capital returned to shareholders | $26.0bn | — | — |
Guidance changes
| Item | New guidance | Prior guidance |
|---|---|---|
| Q3 FY27 revenue | $108.0 billion, plus or minus 2% | — |
| Q3 FY27 GAAP and non-GAAP gross margin | 74.0%, plus or minus 50 basis points | — |
| Q3 FY27 GAAP operating expenses | approximately $9.2 billion | — |
| FY27 GAAP and non-GAAP tax rate | 16.0% to 18.0% | — |
| Q3 FY27 China Data Center compute revenue assumed in outlook | none assumed | — |
Quality of earnings
No material one-time items; reported growth reflects underlying performance.
Gotchas & watch items
- Q3 gross margin is guided down to 74.0% from 75.0%, the first guided step-down after two quarters of expansion.
- Operating expenses of $8,408m grew 55% year over year and are guided to approximately $9.2bn in Q3, a 9% sequential increase against 12% revenue growth.
- Edge Computing revenue of $7.2bn grew 27% year over year -- a fraction of the Data Center rate, so segment concentration keeps rising.