NVIDIA reports record Q2 FY2026 revenue of $46.7bn, Data Center growth drives 56% YoY surge

Overview

NVIDIA delivered record results in the second quarter of fiscal 2026, with revenue surging 56% year-over-year to $46.7bn. Growth was powered by its Data Center business, fueled by extraordinary demand for Blackwell GPUs and AI infrastructure. Despite regulatory headwinds and the absence of H20 shipments to China, NVIDIA expanded margins, achieved record operating income, and returned significant capital to shareholders, underscoring its dominance at the center of the global AI boom.

“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. NVIDIA NVLink rack-scale computing is revolutionary, arriving just in time as reasoning AI models drive orders-of-magnitude increases in training and inference performance. The AI race is on, and Blackwell is the platform at its center”, said Jensen Huang, founder and CEO of NVIDIA.

Q2 FY2026 vs. Q2 FY2025:

Total revenue was $46.7bn (+56% YoY and +6% QoQ), reflecting broad AI-driven demand across markets.
- Data Center revenue hit $41.1bn (+56% YoY), with Blackwell platform revenue growing 17% sequentially and record demand from cloud, enterprise, and sovereign AI projects.
- Gaming revenue rose to $4.3bn (+49% YoY), supported by GeForce RTX 5060 adoption and record ramp of x60-class GPUs. GeForce RTX 5060 became the fastest-ramping x60-class GPU ever, while DLSS 4 adoption expanded to over 175 games.
- Professional Visualization revenue grew to $601m (+32% YoY), benefiting from Blackwell-powered GPUs and Omniverse adoption in industrial AI workflows. RTX Pro GPUs and Omniverse SDKs advanced industrial AI and digital twin adoption, including new partnerships with Siemens.
- Automotive revenue surged to $586m (+69% YoY), with early shipments of DRIVE Thor and new Jetson AGX Thor AI platforms powering autonomous driving and robotics.
- OEM & Other revenue reached $173m (up from $88m a year ago), reflecting demand for legacy components and entry-level GPUs.
GAAP gross margin was 72.4% (non-GAAP 72.7%), with strong product mix. Excluding an H20 inventory release, non-GAAP margin was 72.3%.
Operating expenses were $5.4bn on a GAAP basis (+38% YoY) and $3.8bn non-GAAP (+36% YoY), reflecting higher investments in R&D, headcount, and go-to-market initiatives.
Operating income reached a record $28.4bn on a GAAP basis (+53% YoY) and $30.2bn non-GAAP (+51% YoY), driven by extraordinary Data Center demand and margin expansion.
GAAP net income was $26.4bn (+59% YoY), while non-GAAP net income was $25.8bn (+52% YoY).
GAAP EPS rose to $1.08 (+61% YoY), while non-GAAP EPS was $1.05 (or $1.04 excluding H20 release), up 54% YoY.
Operating cash flow reached $15.4bn, and free cash flow totaled $13.5bn, underscoring robust capital generation.
NVIDIA returned $24.3bn to shareholders in 1H FY2026 via buybacks and dividends. The Board authorized an additional $60bn repurchase program.

For Q3 FY2026, NVIDIA expects revenue of $54.0bn (±2%) with GAAP and non-GAAP gross margins of ~73.3% and ~73.5%, respectively, and operating expenses of ~$5.9bn (GAAP) and ~$4.2bn (non-GAAP). The company reiterated its outlook to exit FY2026 with non-GAAP gross margins in the mid-70% range, reflecting extraordinary demand for AI computing infrastructure. Management emphasized that NVIDIA remains at the epicenter of the AI race, with Blackwell ramping at full speed and sustained momentum expected into FY2027.

After its latest earnings release, NVIDIA shares slipped about -2.5% in post-market trading, retreating slightly from near all-time highs despite once again beating analyst estimates across the board. Technically, the bullish trend remains intact, with the stock comfortably above both the 50-day SMA ($169.23) and the 200-day SMA ($138.46), and continuing to build on a strong sequence of higher highs and higher lows. The RSI currently sits at 61.17, in a healthy mid-range that suggests neither overbought nor oversold conditions, leaving room for further upside. Year-to-date, NVIDIA has gained +31.3%, consistently setting fresh records and reinforcing its leadership position within the semiconductor sector.