Nvidia delivered a stellar second quarter in fiscal 2026, reporting $46.7 billion in revenue—a historic 56% increase year-over-year and a new company record.
Q2 Financial Highlights
- Revenue: $46.743 billion, up 6% from Q1 and 56% from Q2 FY25.
- Data Center Revenue: $41.1 billion—also up 56% year-over-year and a sequential gain of 5%.
- Net Income: Ballooned by 59% to $26.4 billion.
- Non-GAAP EPS: $1.05, slightly above estimates.
- Gross Margins: Strong performance with GAAP at 72.4% and non-GAAP at 72.7%. NVIDIA
Strategic Developments & Investor Signals
The surge in demand stems from Nvidia’s dominance in AI infrastructure, particularly with its new Blackwell Ultra chips generating exceptional momentum.
Despite stellar numbers, shares dipped 2–3% in after-hours trading, driven by investor wariness over geopolitical challenges—especially U.S.-China chip export restrictions—and concerns of an overheated AI market.
Q3 Outlook
Nvidia forecasted $54 billion in revenue (±2%) for Q3, well above analysts’ expectations. This forecast does not include any projected revenue from H20 chip sales to China due to lingering export control issues.
Implications & Forward View
- Market Leadership: Nvidia’s Q2 performance reinforces its position as a cornerstone of the global AI revolution.
- Geopolitical Risks: U.S.-China trade friction remains a chief concern, particularly regarding chip sales and revenue exposure.
- Investor Optimism Despite Caution: Large-scale momentum continues due to demand from hyperscalers, even as some investors temper enthusiasm.
