NVIDIA's Q2 2026 Revenue Soars 56% YoY, nvda Data Center Leads with $41.1 Billion

NVIDIA, a leading player in the artificial intelligence and computing technology sectors, has announced its financial results for the second quarter of fiscal 2026, presenting impressive growth figures. The company reported a revenue amounting to $46.7 billion, reflecting a 6% increase from the previous quarter and a significant 56% year-over-year growth. Particularly noteworthy is NVIDIA’s Data Center division, which achieved revenue of $41.1 billion, mirroring the overall revenue growth trends of 5% from the preceding quarter and 56% increase compared to last year. The Blackwell Data Center further reported a sequential revenue growth of 17%, highlighting the robust demand for its generational leap in AI infrastructure.

In the second quarter, NVIDIA did not make any sales of its H20 chips to China-based customers. However, the company experienced a boost from the release of previously reserved H20 inventory worth $180 million and realized $650 million in unrestricted H20 sales to a customer outside of China. Financially, NVIDIA reported GAAP and non-GAAP gross margins of 72.4% and 72.7% respectively, while excluding the $180 million H20 inventory release, the non-GAAP gross margin would stand at 72.3%.

During the same quarter, NVIDIA’s GAAP earnings per diluted share were reported at $1.08, with non-GAAP earnings slightly lower at $1.05. Again, excluding the inventory release and its tax impacts, NVIDIA reported that the non-GAAP diluted earnings per share would have been $1.04.

NVIDIA's founder and CEO, Jensen Huang, acknowledged the breakthrough of the Blackwell platform in AI technology, which has swiftly ramped up production to meet extraordinary demand. Blackwell is poised at a pivotal position in the competitive AI landscape, particularly driven by the increased performance benchmarks in training and inference brought about by reasoning AI models. Huang emphasized the revolutionary aspect of NVIDIA NVLink rack-scale computing arriving at a crucial juncture as AI models evolve.

In the first half of fiscal 2026, NVIDIA has returned $24.3 billion to its shareholders through stock buybacks and cash dividends. As of the closing of the second quarter, the company retained $14.7 billion under its share repurchase authorization. In a strategic move, NVIDIA's Board of Directors approved an additional $60.0 billion for the company’s share repurchase authorization without expiration date on August 26, 2025. Additionally, NVIDIA intends to distribute its next quarterly cash dividend of $0.01 per share on October 2, 2025, to shareholders registered by September 11, 2025.

NVIDIA anticipates continuing this growth trajectory into the next quarter, with revenue expected to climb to $54.0 billion, plus or minus 2%. The company's outlook does not anticipate any H20 shipments to China within the period. GAAP and non-GAAP gross margins are projected to be 73.3% and 73.5% respectively, with a margin rise forecasted to eventually settle in the mid-70% range. The operational expenditures are calculated to reach approximately $5.9 billion in GAAP terms and $4.2 billion on a non-GAAP basis. For the entire fiscal year, operating expense growth is projected in the high-30% range, and other income and expenses are foreseen to yield approximately $500 million excluding equity securities gains and losses. The expected GAAP and non-GAAP tax rates are estimated at 16.5%, allowing for a possible fluctuation of 1%, barring any discrete items.

In terms of segment highlights, NVIDIA’s Data Center revenue for the second quarter totaled $41.1 billion, showcasing solid gains of 5% sequentially. Recent innovations include NVIDIA RTX PRO™ 6000 Blackwell Server Edition GPU expanding across major global enterprise servers, and partnerships with elite companies such as Disney, Foxconn, and SAP, amongst others are reported. NVIDIA further unveiled its plans to pioneer AI infrastructure using Blackwell technology in collaboration with several European nations, thereby fostering a future of AI-powered industrial transformation.

Within the Gaming sector, NVIDIA recorded a second-quarter revenue of $4.3 billion, marking a 14% rise from the preceding quarter. The launch of the Blackwell-powered NVIDIA GeForce RTX™ 5060 was met with enthusiastic adoption, becoming the company’s fastest-ramping x60-class GPU to date.

Professional Visualization also observed a 18% sequential revenue increase, summing to $601 million in its second quarter. Expansions in collaboration with Siemens and the release of advanced AI development kits under NVIDIA Omniverse™ further illustrate NVIDIA's growing influence in industrial digitalization.

Automotive segment revenue progressed 3% sequentially, earning $586 million. NVIDIA's deployment of its DRIVE™ AV platform and the initial shipment of DRIVE AGX Thor™ systems and developer kits illustrates its commitment to leading advancements in intelligent transport solutions at scale.

These results highlight NVIDIA’s continued leadership in AI and computing technology, buoyed by its strategic initiatives and robust capital returns to shareholders. Analysts remain optimistic about NVIDIA's potential to exceed expectations, further solidifying its status as an influential market player amidst a rapidly evolving tech landscape.