NVIDIA 2026 Q2 Financial Results
Record Streak of Records
As what is currently the world’s most valuable company by market capitalization, NVIDIA has established a reputation for doing things their own way. Even their earnings schedule is downright aloof, with NVDA 0.00%↑ reporting their quarterly earnings a good month behind most other tech companies – and with a fiscal year nearly a full year ahead of the actual calendar year. But don’t mistake aloof financial reports for an aloof company: it’s NVIDIA’s engineering and sales prowess has driven them to the top of the market, riding the wave of the current AI boom to reach new heights that even a few years ago would sound ridiculous.
Still, every large wave will eventually break, and as the market leader in AI hardware, NVIDIA has found itself in the somewhat unenviable position of becoming the bellwether for the AI industry as a whole. As a result, NVIDIA’s financial performance is not just a reflection of the state of the company, but to many observers, it is a reflection of the state of the entire AI industry – one that NVIDIA has built its empire upon. Suffice it to say, there is, perhaps, a bit of pressure on NVIDIA to keep up its so far stellar performance.
Thankfully, for NVIDIA, yet another record quarter across the board will alleviate that pressure for now. With $46.7b in revenue for Q2’26, every single segment of NVIDIA has seen both significant year-over-year growth and more modest quarter-over-quarter growth. And with the one-time charges for H20 export restrictions now behind them, NVIDIA’s second quarter of the fiscal year hasn’t experienced any significant obstructions. In short, NVIDIA is continuing to let the good times roll.
Key Takeaways (GAAP)
💵 Q2 Revenue, $46.7b, up 56% YoY from $30.0b and up 6% QoQ
📈 Q2 Gross Margin at 72.4%, down 2.7pp YoY and up 11.9pp QoQ
💰 Q2 Net Income of $26.4b, up 59% YoY from $16.6b and up 41% QoQ
🪙 Q2 EPS $1.08, up 61% YoY, up 42% QoQ
Highlights
💵 Record Quarterly Revenue
💵 Record Data Center Revenue
💵 Record Gaming Revenue
💵 Record Automotive Revenue
Financial Overview
For the second quarter of NVIDIA’s 2026 fiscal year, the company booked a record $46.7b in revenue. Compared to Q2’25, that’s a sizable 56% year-over-year increase in revenue. As with the past few quarters, NVIDIA’s overall revenue growth has tempered some, and the company is no longer doubling its revenue inside of a single year. But that’s about the worst thing you can say about a company that’s still growing over 50% a year.
All told, this is now the 10th consecutive quarter of revenue growth for the company. NVIDIA hasn’t seen a quarterly decline in revenue since Q3’23. Part of this is the lack of seasonality for the data center business, but more than that, NVIDIA is simply having no issue finding more customers and more orders for its hardware and services across the board.
Going beyond NVIDIA’s top-line revenue, the rest of NVIDIA’s financials are quite strong as well. Having recovered from the one-off charges related to H20 export restrictions, NVIDA’s GAAP and non-GAAP gross margins have recovered to the 70%+ range that the company has become known for in the past couple of years. With a non-GAAP gross margin of 72.7%, NVIDIA’s margins are still down a bit year-over-year by 2.7 percentage points. NVIDIA had previously talked about margins recovering a bit more later in the year, but as of late the company has changed its stance some, noting that the bulk of Blackwell data center revenue is in the form of rack-scale systems, whereas Hopper was primarily sold as HGX systems. In other words, NVIDIA’s gross margin is being pulled down slightly by the more mundane and less profitable parts that go into selling whole racks worth of systems.
With the recovery of their gross margins, NVIDIA’s overall profitability has handily recovered as well. For Q2’26 the company recorded a GAAP net income of $26.4b, 59% higher than the year-ago quarter. In fact, NVIDIA’s GAAP net income is growing faster than its top-line revenues, underscoring just how profitable the current market is. Like so many other metrics for Q2, this is a record net income for NVIDIA as well.
Touching briefly on the H20 situation, with the US government reopening exports of high-end accelerators to China (in exchange for paying the US 15% of that revenue), those H20 accelerators are starting to come back into play. For Q2, NVIDIA did not sell any H20 accelerators to China, and NVIDIA’s Q3 projections are not factoring in H20 sales, either. The company still needs its export license approved, never mind the potential geopolitical issues at play in China.
In the meantime, NVIDIA reported that it has been able to sell some of those previously China-bound H20s to non-Chinese customers. For Q2’26, the company sold $180m in previously-reserved H20 inventory to an unrestricted customer, helping to boost the company’s revenues and gross margins.
Overall, NVIDIA’s Q226 performance was largely ahead of the company’s official guidance for the quarter. NVIDIA was initially projecting $45b +/- $900m in revenue, so NVIDIA’s $46.7b in revenue beat even the high-end of their revenue projections. Meanwhile NVIDIA’s non-GAAP gross margins of 72.3% (sans extra H20 sales) came in at the high end of the company’s previous guidance of 72% +/- 0.5pp. And if you do include those H20 sales, then NVIDIA has beaten their projection entirely at 72.7%.
Taking a quick look at NVIDIA’s cash flow, the company has been opting to return much of its profits to shareholders in the form of share buybacks. The company has repurchased $24.3b in shares so far this year, and yesterday the Board of Directors approved adding a further $60b to the company’s share repurchase authorization, bringing the remaining authorization to $74.7b. Meanwhile, NVIDIA will be paying out a $0.01 cash dividend to shareholders next month.
Despite those buybacks, NVIDIA’s balance sheet has continued to grow, with the company adding another $2.9b in cash, cash equivalents, and marketable securities to its sheet, bringing the total to $56.8b. Otherwise, NVIDIA’s free cash flow for the quarter of $13.4b is closer to NVIDIA’s historical norms, coming off of Q1’26’s enormous $26.1b in free cash flow.
Data Center: Blackwell, Hopper, & Grace
💵 Q2 Revenue $41.1b, up 56% YoY
For Q2’26, NVIDIA’s flagship market platform has once again delivered exceptional growth. Altogether, NVIDIA shipped $41.1b in DC products for the quarter, driving NVIDIA’s explosive growth and potent profitability.
Back in Q1, NVIDIA’s data center revenue fell below 90% of their total revenue. And that slight dip has actually grown a bit more in Q2, with data center revenue making up 87.9% of all revenues for the quarter. This comes despite the growth of the data center segment, as another strong quarter for NVIDIA’s gaming business unit has allowed it to claw back some of its revenue share from the data center unit.
Driving their record business unit revenue, Q2 saw the continued ramping of products based on NVIDIA’s Blackwell architecture, such as GB200, B100, and B200, as well as the initial ramping of their mid-generation upgrade Blackwell Ultra GPU, which will eventually go into GB300 compute nodes. According to NVIDIA, data center revenue from Blackwell products grew 17% sequentially, underscoring how the full ramp for Blackwell is a long one. With Blackwell Ultra just ramping, NVIDIA may very well be ramping production on some kind of Blackwell GPU right up to the point that its next-generation successor comes along.
Unusually, NVIDIA’s data center compute revenue is actually down on a quarterly basis, declining 1% from $34.2b to $33.8b. According to NVIDIA, the decline is due to a drop-off in H20 sales, with those making up $4b in revenue in the previous quarter.
In compute’s stead, networking revenue has exploded, allowing it to more than cover the drop in compute revenue. For the quarter, NVIDIA booked $7.3b in networking revenue, a ridiculous 98% year-over-year and 46% quarter-over-quarter growth figure – all but shadowing Q1, when networking sales crossed $5.0b for the very first time. As with Q1, this comes from a spike in demand for networking products, including NVLink compute fabrics for Grace Blackwell systems, as well as the ramp of XDR InfiniBand products, and classical Ethernet adoption for AI customers by cloud service providers. NVIDIA’s NVL72 rack scale systems went into full production earlier this year, and it’s noteworthy that those systems make extensive use of NVLink to interconnect all 72 of its Blackwell GPUs. Consequently, NVIDIA’s networking hardware sales have scaled up significantly with the growth of NVL72 sales.
Gaming: GeForce
💵 Q2 Revenue $4.3b, up 49% YoY
Besides NVIDIA’s seemingly evergreen data center segment, another major growth segment for NVIDIA in Q2 was once again their gaming segment. Following a lackluster period at the tail end of the RTX 40 series (Ada Lovelace) as consumers waited for newer cards, NVIDIA has turned things around on the back of the GeForce RTX 50 series (Blackwell) launch for consumers, posting significant quarterly and yearly revenue gains.
Altogether, NVIDIA booked $4.2b of revenue for its gaming segment in Q2’26, setting another all-time revenue record for the gaming segment. This was a 49% YoY revenue increase, while a more modest 14% QoQ revenue increase. It also helped NVIDIA’s gaming segment claw back a bit more of its total revenue share in the company – now up to 9.2% – helping to keep data center revenues below 90%.
While Q1’26 was the big break out for NVIDIA’s RTX 50 series products in terms of revenue, like its data center counterpart, Blackwell for consumers is still ramping as well. So NVIDIA’s revenue prospects are growing alongside Blackwell GPU production. Of particular note, Q2 saw the release of NVIDIA’s GeForce RTX 5060 accelerator – the x60-class being NVIDIA’s highest volume class – which has greatly increased the number of RTX 50 series cards in consumers hands. Helping matters even more, according to NVIDIA the RTX 5060 series ramp was the fastest x60 card ramp in company history.
NVIDIA has also been able to sell some RTX 50 series cards internally, as well, as the company is starting to outfit its GeForce NOW game streaming service with newer Blackwell-based cards. The streaming service doesn’t use consumer-grade cards, but the revenue from it is booked under gaming – and notably, it doesn’t use the GB100 GPUs that are coveted by the data center market.
Professional Visualization
💵 Q2 Revenue $601m, up 32% YoY
As with NVIDIA’s gaming segment, their professional visualization segment is continuing to benefit from this year’s release of NVIDIA’s Blackwell architecture GPUs.
With $601m in revenue for the ProViz segment for Q2’26, the business unit has seen its revenues grow by 32% on a YoY basis, or 18% quarterly. Though even with that growth, ProViz is one of NVIDIA’s only business segments not to be setting an all-time record in the most recent quarter. Still, this marks the best quarter for the business unit in over 3 years, and it is now within 10% of its all-time revenue record of $643m.
Compared to prior quarters, ProViz’s revenue seems to be evening out some, rather than being heavily lopsided in favor of AI. While NVIDIA still cites AI as a major favor in the segment’s performance, the revenue growth for the recent quarter is also being attributed to the growth of sales of RTX Pro (Blackwell) notebook products, which are used for the complete spectrum from AI to graphics to data simulation.
This segment will also eventually be the beneficiary of NVIDIA’s DGX Spark and DGX Station systems once those start shipping. Based on NVIDIA’s GB10 SoC – a joint project with MediaTek –pre-orders for those systems have been open for months, but they have yet to start shipping. This has left developers chomping at the (4-)bit to get their hands on the small form factor PC. DGX Spark is expected to be available in the current quarter (Q3), with DGX Station to follow later. NVIDIA has this week done a more detailed dive into its GB10 SoC at the Hot Chips conference.
Automotive/Robotics: Jetson, DRIVE, Isaac
💵 Q2 Revenue $586m, up 69% YoY
The last of NVIDIA’s record-setting business units for the quarter is the automotive, embedded computing, and robotics unit. NVIDIA’s third-largest segment is coming off of an already strong Q1’26, booking $586m in revenue and beating the old record by $16m. Revenue has grown both yearly and sequentially, up 69% and 3% respectively.
And while it isn’t immediately having an impact on NVIDIA’s bottom line, the big news out of this segment for the quarter is that NVIDIA’s latest DRIVE AGX SoC, Thor, has finally begun shipping. The Blackwell-based SoC succeeds the circa-2022 Orin SoC, bringing a full generation’s worth of improvements, as well as new Arm Neoverse V3AE-based CPU cores. Alongside the availability of the SoC itself, NVIDIA has also started shipping the Jetson AGX Thor embedded computing board that incorporates the new SoC.
Otherwise, as with Q1’s performance, NVIDIA is primarily attributing the growth to strong sales of its self-driving platforms. On which note, the company has also mentioned that the DRIVE AV software platform is now in full production, which should bear fruit over the long-term.
Notably, NVIDIA had little to say about robotics for the most recent quarter. This isn’t unusual, as the segment seems to still be quite small overall, but it remains one of NVIDIA’s big long-term bets.
OEM & Other
💵 Q2 Revenue $173m, up 97% YoY
Rounding out NVIDIA’s reporting segments, we have the OEM & Other category. This catch-all unit has been used to account for things such as sales of GeForce MX GPUs (i.e. ultra low-end dGPUs for laptops) as well as NVIDIA’s revenue from Nintendo Switch 1 sales. (To date, NVIDIA has not confirmed if they’re also booking Switch 2 revenue here, or as part of Gaming)
For the quarter, the OEM&O segment booked $173m in revenue, which was up a whopping 97% from the year-ago quarter and 56% sequentially. Unfortunately, NVIDIA is not providing any background information for this segment on this year’s reports, so there are no customers or product developments that the revenue growth can be concretely attributed to.
Outlook, Q3 FY2026
Outlook is as follows:
💵 Q3’26 Revenue, $54.0b, +/- $1.080b
📈 Q3’26 Gross Margins of 73.5% +/- 0.5pp (non-GAAP)
For the third quarter of their 2026 fiscal year, NVIDIA is once again projecting a record quarter for revenue, and improving upon the more restrained sequential growth of Q2. Assuming NVIDIA’s Q3 revenue goes as predicted, the company is expecting $54b +/- $1.08b in revenue, which would represent 54% YoY revenue growth and 16% quarterly revenue growth.
Meanwhile gross margins should be roughly flat with Q2, with NVIDIA projecting a non-GAAP margin of 73.5%, plus or minus 50 basis points. Of particular note, the company is reiterating that it expects to exit 2026 with gross margins in the mid-70% range, which implies that NVIDIA still expects to grow margins a bit further – but giving them enough wiggle room such that they’re already in the mid-70s range, if barely.
Compared to NVIDIA’s Q2 revenue predictions, Q3 is far more straightforward. Without any H20-related matters to contend with for the quarter, NVIDIA can be bullish on the basis of having a good idea of how the rest of their product lines will perform. In fact, the company is ignoring H20 entirely – their Q3 projections do not include any Chinese H20 sales. So if NVIDIA does get their export license and lines up some customers, then that would be a further boon to their Q3 performance – but certainly not one they are counting on.
Otherwise, the major drivers for NVIDIA’s revenues in Q3 will continue to be all things Blackwell: more high margin Blackwell servers for the data center segment, more Blackwell-based GeForce cards for the consumer segment, and a ramp-up of Blackwell-based Thor SoCs. Suffice it to say, Blackwell sales are keeping NVIDIA’s financial performance well in the black this year.
