NVIDIA NVDA Earnings Report: Revenue Surges 56% Amid Data Center Growth and AI Demand

NVIDIA, trading under the ticker NVDA on NASDAQ, reported significant growth in its financial results for the second quarter of fiscal 2026, ended July 27, 2025. The company's revenue reached $46.7 billion, reflecting a 6% increase from the previous quarter and a robust 56% surge from the same period in the previous year. Of particular note, the Data Center segment accounted for $41.1 billion of this revenue, marking a 5% quarter-over-quarter rise and 56% year-over-year growth, underscoring the expanding demand for NVIDIA’s solutions in the AI and data center markets.

The firm's new Blackwell Data Center product line experienced a 17% sequential revenue increase, demonstrating heightened market traction. The company did not record any H20 sales to China-based customers during this quarter, but capitalized on a $180 million release of previously reserved H20 inventory, linked to sales amounting to approximately $650 million to customers outside of China.

NVIDIA reported GAAP gross margins of 72.4% and non-GAAP gross margins of 72.7% for the quarter. If the $180 million inventory release were excluded, the non-GAAP gross margin would have slightly decreased to 72.3%. Earnings per diluted share stood at $1.08 on a GAAP basis and $1.05 on a non-GAAP basis. Excluding the inventory release and its related tax impact, this non-GAAP figure would have marginally lowered to $1.04 per share.

CEO Jensen Huang highlighted the transformative impact of the Blackwell platform, emphasizing its pivotal role in the ongoing AI revolution, with NVIDIA NVLink at the forefront of enhancing training and inference performances of reasoning AI models.

During the first half of fiscal year 2026, NVIDIA returned value to shareholders totaling $24.3 billion through share repurchases and cash dividends. As of the end of the second quarter, the company retained $14.7 billion under its share repurchase authorization, and subsequently, the Board of Directors on August 26, approved an additional $60 billion to the authorization, sans an expiration date.

For the upcoming fiscal third quarter, NVIDIA projects its revenue to reach approximately $54 billion, within a margin of plus or minus 2%. Gross margins are forecasted at 73.3% on a GAAP basis and 73.5% on a non-GAAP basis. Operating expenses are expected to approximate $5.9 billion and $4.2 billion on a GAAP and non-GAAP basis, respectively. The expected GAAP and non-GAAP tax rates stand at 16.5%, with a potential fluctuation of plus or minus 1%.

Within this period, NVIDIA continued to scale its advancements. These include major announcements related to its Data Center line, strategic global collaborations to bolster AI infrastructure, and significant product introductions in gaming and AI, professional visualization, as well as in the automotive and robotics sectors. The GTX Cloud expansion, RTX PRO GPU series introduction, and the progression of the DRIVE AGX platform exemplify NVIDIA’s leadership and commitment to innovation across diverse technology and industry landscapes.