Explainer
How to read a 10-Q
In brief
To read a Form 10-Q, a US company's quarterly report to the SEC, start with the cover, which names the quarter. Then read the Part I financial statements and management's discussion, and any Part II changes to risk factors. For example, NVIDIA's Form 10-Q for Q2 FY2027 (ended 26 Jul 2026) reported revenue of USD 96.2 billion.
1. Check the period on the cover page
The cover page of a Form 10-Q names the quarter it covers, in the line "For the quarterly period ended". It also shows the filer's status, such as large accelerated filer, and its shares outstanding. The SEC's EDGAR filing search lists each company's 10-Q filings.
A 10-Q is due 40 days after the quarter ends for large accelerated and accelerated filers, and 45 days for all others.[1] No 10-Q is required for the fourth quarter: the form covers only the first 3 quarters of each fiscal year.[1] Fiscal quarters need not match calendar quarters.
Where no filing reports the fourth quarter on its own, StockFactsheet derives it from the 10-K. It is the fiscal year minus the first 9 months, and it carries the D marker (derived by StockFactsheet). The full rule is in our methodology for derived quarters.
2. Read the income statement in Part I
The financial statements of a Form 10-Q are in Part I, Item 1.[1] The income statement shows revenue, costs and net income for the 3 months of the quarter and for the year to date. Each column sits beside the same period of the prior year.[2]
In a second-quarter 10-Q the year-to-date columns cover 6 months, and in a third-quarter 10-Q they cover 9 months. Operating income is the profit of the business before interest, other income and tax, and net income is what remains after them. Operating income divided by revenue is the operating margin.
3. Read the balance sheet and cash flows
The balance sheet in a Form 10-Q compares the end of the quarter with the end of the last fiscal year.[2] The cash flow statement runs from the start of the fiscal year. The 10-Q need not show cash flows for the quarter on its own.[2]
Quarterly cash flows are found by subtraction: the second quarter is the 6-month figure minus the first, and the third is the 9-month figure minus the 6-month figure. StockFactsheet derives cash flow quarters the same way when a filing gives only year-to-date totals. Our quarterly free cash flow starts from these quarters.
4. Read management's discussion and analysis
Management's discussion and analysis, or MD&A, is Part I, Item 2 of a Form 10-Q.[1] In it, management explains the main changes in revenue, costs and profit for the quarter and the year to date. It also covers liquidity: the company's cash, borrowing and commitments.
MD&A is also where some companies present measures of their own, such as adjusted earnings or growth at constant currency. These are not US GAAP figures, so they can differ from the figures in the statements. StockFactsheet's tables use the statement figures as reported, not company-defined adjustments.
5. Check Part II for changes since the 10-K
Part II of a Form 10-Q holds other information, and much of it updates the last 10-K. Item 1A lists only material changes to the risk factors in the 10-K, so the full list stays in the annual report.[1] Item 1 covers legal proceedings, and Item 2 includes share buybacks, month by month.[1]
The chief executive and chief financial officers must certify the financial and certain other information in each 10-Q.[3] A Part II item that does not apply may be left out.[1] The annual report and its audited statements are covered in how to read a 10-K.
Worked example: NVIDIA
The table shows revenue, operating income and net income from NVIDIA's Form 10-Q for Q2 FY2027, the quarter ended 26 Jul 2026. The second column is Q1 FY2027, from the 10-Q filed before it. Both columns cover 3 months alone, as printed in each 10-Q's income statement.
The two columns are consecutive quarters, not the year-on-year pair that the 10-Q prints side by side. When net income is larger than operating income, the items between the two lines added to profit on balance. The MD&A and notes of a 10-Q explain such items.
| USD m | Q2 FY2027ended | Q1 FY2027ended |
|---|---|---|
| Revenue | 96,221 | 81,615 |
| Operating income | 63,734 | 53,536 |
| Net income | 59,688 | 58,321 |
Source: NVIDIA Form 10-Q for Q2 FY2027 and Form 10-Q for Q1 FY2027, SEC EDGAR
Totals may not add up because of rounding.
All periods: NVIDIA income statement
Common mistakes
- Reading the balance sheet of a 10-Q as one quarter's change: its comparative column is the last fiscal year end, so a third-quarter 10-Q compares balances 9 months apart.[2]
- Comparing a quarter only with the one before it: in a seasonal business, the year-earlier column in the 10-Q is the like-for-like comparison.
- Treating 10-Q figures as audited: an independent accountant reviews interim statements, which is a narrower check than the audit of the annual statements in the 10-K.[2]
Sources and data
The references explain the form and its rules; the worked example's figures are as reported in the filings after them. Derived figures are our calculations (see Methodology).
(opens in new tab)- [1] Reference General form for quarterly reports under Section 13 or 15(d)
- [2] Reference Financial Reporting Manual, Topic 1: Registrant's Financial Statements
- [3] Reference Exchange Act Reporting and Registration
- [4] Filing Form 10-Q, quarter ended 26 Jul 2026
- [5] Filing Form 10-Q, quarter ended 26 Apr 2026
- [6] Our dataset StockFactsheet fundamentals dataset, extracted from SEC EDGAR XBRL on ; derived values (Q4, TTM, free cash flow, net debt, margins, growth rates and ratios) are explained in Methodology.
Cite this page
StockFactsheet (2026). "How to read a 10-Q." Signed off by OffScriptBySami. Updated ; data as of . https://stockfactsheet.com/learn/how-to-read-a-10-q/
For information only. StockFactsheet does not recommend buying, selling or holding any security. Figures can contain errors; always check the original filings. Full disclaimer
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