NVIDIA’s Q2 fiscal 2026 results showcased unprecedented growth, with total revenue reaching $46.7 billion, representing a 56% increase year-over-year. This performance was driven primarily by explosive demand for AI computing infrastructure, with Data Center revenue contributing $41.1 billion to total revenue. Sequential growth of 6% demonstrates sustained momentum despite the company’s massive scale.

Gross margins remained robust at 72.4% on a GAAP basis and 72.7% on a non-GAAP basis. The sequential improvement of 11.9 percentage points was aided by a $180 million release of previously reserved H20 inventory. Excluding this release, non-GAAP gross margin would have been 72.3%, still demonstrating strong pricing power and operational efficiency in the AI computing market.

Operating income surged to $28.4 billion, up 31% sequentially and 53% year-over-year. This exceptional profitability reflects NVIDIA’s dominant position in the AI infrastructure market and the company’s ability to scale operations efficiently. Operating expenses increased 8% sequentially to $5.4 billion, primarily driven by continued investments in research and development.

Net income reached $26.4 billion, representing a 59% increase year-over-year. Diluted earnings per share of $1.08 exceeded expectations, up 61% from the prior year period. On a non-GAAP basis, diluted EPS was $1.05, demonstrating strong underlying profitability excluding one-time items.

The company’s balance sheet remained exceptionally strong with $56.8 billion in cash, cash equivalents, and marketable securities. NVIDIA returned $24.3 billion to shareholders in the first half of fiscal 2026 through share repurchases and dividends, with the board approving an additional $60 billion share repurchase authorization.

Data Center remained the dominant growth engine with revenue of $41.1 billion, up 5% sequentially and 56% year-over-year. The segment benefited from extraordinary demand for AI training and inference capabilities, with Blackwell Data Center revenue growing 17% sequentially as production ramped to full speed. The company achieved this growth despite no H20 sales to China-based customers in the quarter.

Gaming delivered impressive results with revenue of $4.3 billion, up 14% sequentially and 49% year-over-year. The launch of the Blackwell-powered GeForce RTX 5060 drove strong adoption, becoming NVIDIA’s fastest-ramping x60-class GPU ever. DLSS 4 technology availability in over 175 games and apps further strengthened the Gaming ecosystem.

Professional Visualization revenue reached $601 million, up 18% sequentially and 32% year-over-year. Growth was driven by the introduction of new Blackwell-based RTX PRO GPUs and expanding partnerships with enterprise customers. The segment benefited from increased demand for AI-accelerated workflows in professional applications.

Automotive and Robotics generated $586 million in revenue, up 3% sequentially and 69% year-over-year. The segment saw initial shipments of the DRIVE AGX Thor system-on-a-chip and continued adoption of the full-stack DRIVE AV software platform. The launch of Jetson AGX Thor developer kits positioned NVIDIA for growth in the robotics market.

Across all segments, NVIDIA demonstrated its ability to innovate and capture value in high-growth markets. The company’s platform approach, combining hardware, software, and services, continued to differentiate its offerings and drive premium pricing across business lines.

The Blackwell platform emerged as a transformational force in Q2 fiscal 2026, delivering exceptional performance and driving significant revenue growth across NVIDIA’s business:

Blackwell Data Center Performance

• Revenue Growth: Blackwell Data Center revenue increased 17% sequentially, demonstrating rapid market adoption
• Production Ramp: Blackwell Ultra production is ramping at full speed with extraordinary demand from customers
• Performance Leadership: Blackwell platform delivered highest performance at scale on every MLPerf Training benchmark
• Rack-Scale Computing: NVIDIA NVLink rack-scale computing arrived just in time for reasoning AI models requiring orders-of-magnitude performance increases

CEO Jensen Huang emphasized Blackwell’s significance: “Blackwell is the AI platform the world has been waiting for, delivering an exceptional generational leap — production of Blackwell Ultra is ramping at full speed, and demand is extraordinary.”

AI Platform Innovations

• OpenAI’s open gpt-oss models achieved 1.5 million tokens per second on a single Blackwell GB200 NVL72 rack-scale system
• Introduction of NVFP4, a 4-bit format purpose-built for exceptional inference latency in next-generation large language models
• Expansion of NVIDIA DGX Cloud Lepton to connect European developers to NVIDIA’s global compute ecosystem
• Launch of new NVIDIA Cosmos world foundation models to accelerate robotics development

The company’s partnership with European nations, including France, Germany, Italy, Spain, and the U.K., to build Blackwell AI infrastructure demonstrates the global significance of NVIDIA’s technology. The collaboration includes development of the world’s first industrial AI cloud for European manufacturers, positioning NVIDIA at the center of the next industrial transformation.

NVIDIA’s AI leadership extended beyond hardware to software and services, with the Nemotron platform being adopted by model builders across Europe and the Middle East for sovereign large language model optimization. The integration with Perplexity and other partners further expanded NVIDIA’s AI ecosystem reach.

NVIDIA maintained an exceptionally strong financial position in Q2 fiscal 2026, providing substantial flexibility for continued investment and shareholder returns:

• Cash Position: $56.8 billion in cash, cash equivalents, and marketable securities as of July 27, 2025
• Total Assets: $140.7 billion, up from $111.6 billion at the beginning of fiscal 2026
• Shareholders’ Equity: $100.1 billion, reflecting strong balance sheet growth
• Operating Cash Flow: $15.4 billion in Q2, demonstrating strong cash generation capabilities
• Free Cash Flow: $13.5 billion in Q2, providing substantial flexibility for capital allocation

The company’s capital return program demonstrated management’s commitment to returning value to shareholders. During the first half of fiscal 2026, NVIDIA returned $24.3 billion to shareholders through share repurchases and cash dividends. Share repurchases of $9.7 billion in Q2 alone reflected the company’s confidence in its business prospects and commitment to shareholder value creation.

On August 26, 2025, the Board of Directors approved an additional $60.0 billion share repurchase authorization without expiration, adding to the $14.7 billion remaining under the existing program. This substantial authorization provides significant flexibility for future capital returns and demonstrates the board’s confidence in NVIDIA’s long-term prospects.

The company maintained its quarterly dividend policy, declaring a dividend of $0.01 per share payable on October 2, 2025. While the dividend yield remains modest relative to the share price appreciation, the company’s focus on share repurchases has been more effective in returning capital to shareholders given the stock’s strong performance.

NVIDIA’s financial strength positions the company to continue investing in research and development, expand manufacturing capacity, and pursue strategic acquisitions while maintaining substantial cash reserves for operational flexibility and shareholder returns.

NVIDIA provided strong guidance for Q3 fiscal 2026, reflecting continued confidence in demand for AI computing infrastructure:

• Revenue expected to be $54.0 billion, plus or minus 2%
• GAAP gross margin expected to be 73.3%, plus or minus 50 basis points
• Non-GAAP gross margin expected to be 73.5%, plus or minus 50 basis points
• GAAP operating expenses expected to be approximately $5.9 billion
• Non-GAAP operating expenses expected to be approximately $4.2 billion
• Full-year fiscal 2026 operating expense growth expected to be in the high-30% range

The Q3 revenue outlook of $54.0 billion represents continued strong sequential growth of approximately 16% and would mark another record quarter for the company. Management noted that the guidance does not assume any H20 shipments to China, providing a conservative baseline for expectations.

Gross margin guidance of 73.5% on a non-GAAP basis reflects the company’s ability to maintain pricing discipline while scaling production. Management continues to expect to exit fiscal 2026 with non-GAAP gross margins in the mid-70% range, demonstrating confidence in the company’s long-term margin profile.

The increase in operating expenses reflects continued investments in research and development to maintain NVIDIA’s technology leadership. Full-year operating expense growth in the high-30% range indicates substantial investment in future growth while maintaining operating leverage as revenue scales.

Other financial guidance includes GAAP and non-GAAP other income of approximately $500 million and tax rates of 16.5%, plus or minus 1%, excluding discrete items. These assumptions provide a framework for modeling the company’s continued financial performance.