--- title: "Nvidia’s Last Quarter Was Nearly Perfect. One Number in the Fine Print Wasn’t." type: "News" locale: "en" url: "https://longbridge.com/en/news/299889479.md" description: "Nvidia reported a stellar Q2 with $96.2B revenue, but its Days Sales Outstanding (DSO) rose from 45 to 60 days due to extended payment terms for key customers. This increase in receivables raises concerns about whether Nvidia is financing customer purchases, potentially inflating demand figures. Investors are advised to monitor DSO and inventory levels closely, as faster growth in these areas than revenue could signal an upcoming spending slowdown." datetime: "2026-09-23T11:40:18.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/299889479.md) - [en](https://longbridge.com/en/news/299889479.md) - [zh-HK](https://longbridge.com/zh-HK/news/299889479.md) generator: "portal-rs" --- # Nvidia’s Last Quarter Was Nearly Perfect. One Number in the Fine Print Wasn’t. **Nvidia** (NVDA +0.66%) recently reported $96.2 billion in revenue for the fiscal second quarter, which was 106% more than in the same period last year. The company also produced a 75% gross margin, and management told investors to expect roughly 70% revenue growth in the next fiscal year. By most numbers, Nvidia reported a stellar quarter. However, a closer look at the company's balance sheet shows that Nvidia's total assets jumped by more than 50% over the past six months. Here's why that matters, and what I'll be watching closely over the next few quarters of Nvidia's AI-driven growth. ![Man squints through his glasses while working on a laptop at home.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2Nkbi5jb250ZW50LmZvb2xjZG4uY29tL2ltYWdlcy8xdW1uOXFlaC9wcm9kdWN0aW9uLzkwMjc3NmRlNWNlOTdhY2ViYTM4NTQ0OTAyNjMyZmQ3ZmQzNjZjNjItMjEyMXgxNDE0LmpwZz93PTIxMjEmaD0xNDE0JnE9NzUmYXV0bz1mb3JtYXQmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Image source: Getty Images. ## Nvidia's spectacular quarter, with one caveat It's difficult to overstate how strong Nvidia's fiscal second quarter was. Revenue and earnings both handily beat expectations, and Nvidia guided to a jaw-dropping $108 billion in revenue for the current quarter, representing 17% sequential growth. Expand ![Nvidia Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05WREEucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NASDAQ: NVDA Nvidia Premium Feature Moneyball Superscore 94/100 Today's Change (0.66%) $1.49 Current Price $228.87 ### Key Data Points Market Cap $5.5TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $226.50 - $229.98 52wk Range $164.27 - $236.54 Volume 774.2K Avg Vol 128.6M Gross Margin 74.67% Dividend Yield 0.23% As mentioned earlier, Nvidia's total assets grew rapidly. A big part of that is the company's receivables rising from $38.5 billion in January to $63.1 billion at the end of July. Of course, *some* growth in receivables is to be expected, given Nvidia's spectacular revenue growth. After all, if you sell more products, you can expect more unpaid invoices at any given time. But one number to note is "days sales outstanding," or DSO. This is the measure of how long, on average, it takes a company to collect after making a sale. Nvidia's DSO went from 45 to 60 days in one quarter. Customers are taking longer to pay. To be fair, Nvidia told us why. The company extended payment terms on large orders from certain customers. ## Why this matters On one hand, Nvidia offering of flexible terms to its strongest customers helps them lock in multi-year deals. On the other hand, Nvidia is increasingly helping finance its customers' orders, which raises the question of whether demand appears higher in the revenue numbers than it otherwise would. This is just the latest in a string of "circular" financial moves. For example, Nvidia agreed to guarantee up to $105 billion of data center lease obligations for OpenAI. It has formed partnerships to raise over $500 billion of outside capital for AI infrastructure. In simple terms, Nvidia is actively helping customers pay for its products. This is especially worth watching for Nvidia stock investors, given the recent push to slow down the pace of AI development. While a call to slow AI development isn't the same thing as a cut to infrastructure budgets, the DSO number, as well as receivables and inventories, are certainly worth keeping an eye on over the next few quarters. If the DSO number stabilizes, and receivables and inventories rise in line with Nvidia's revenue, it's a very good sign. On the other hand, if these numbers continue to grow faster than the top line, it could indicate a spending slowdown. ### Related Stocks - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVDS.US](https://longbridge.com/en/quote/NVDS.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md) - [NVDG.US](https://longbridge.com/en/quote/NVDG.US.md) - [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md) - [NVD.US](https://longbridge.com/en/quote/NVD.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [NVDB.US](https://longbridge.com/en/quote/NVDB.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [NVDO.US](https://longbridge.com/en/quote/NVDO.US.md) - [NVDW.US](https://longbridge.com/en/quote/NVDW.US.md) - [NVYY.US](https://longbridge.com/en/quote/NVYY.US.md) - [NYYY.US](https://longbridge.com/en/quote/NYYY.US.md) - [DIPS.US](https://longbridge.com/en/quote/DIPS.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [07388.HK](https://longbridge.com/en/quote/07388.HK.md) - [07788.HK](https://longbridge.com/en/quote/07788.HK.md) - [09388.HK](https://longbridge.com/en/quote/09388.HK.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) ## Related News & Research - [Nvidia's 'Very Undemanding Valuation' Helps Win Back Top Chip Pick From Leading Analyst](https://longbridge.com/en/news/300801615.md) - [QUICK SPARK: Nvidia Board OKs Massive $150B Buyback Plan, Shares Spike to All-Time Highs](https://longbridge.com/en/news/300815741.md) - [NVIDIA Corporation $NVDA Shares Bought by Mmbg Investment Advisors CO.](https://longbridge.com/en/news/300849659.md) - [Nvidia Stock (NVDA) Hits All-Time High Days After Announcing Record Buyback](https://longbridge.com/en/news/300810194.md) - [NVIDIA Corporation $NVDA Stock Sold by Quartz Partners LLC](https://longbridge.com/en/news/300872368.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**