#NVIDIAEarnings

NVIDIA Q2 FY26 Earnings: $46.7 Billion Sales, Blackwell Surge, and $54 Billion Outlook

NVIDIA reported second fiscal quarter 2026 results and the print is huge. Sales hit $46.743 billion, up 6% vs Q1 and up 56% year over year. Wall Street forecast was $46.06 billion, so it beat. Share saw choppy after-hours trade, yet core data shows AI super-cycle still at full speed.

Core Data

Total sales: $46.743 billion
Data Center: $41.1 billion, up 5% quarter over quarter, up 56% year over year
Gaming and AI PC: $4.3 billion, up 14% quarter over quarter, up 49% year over year
Pro Visualization: $601 million, up 18% quarter over quarter, up 32% year over year
Auto and Robotics: $586 million, up 3% quarter over quarter, up 69% year over year

Gross margin: GAAP 72.4%, non-GAAP 72.7%. Excluding $180 million H20 reserve release, non-GAAP margin would be 72.3%.

Net income: GAAP $26.422 billion, up 59% year over year. Non-GAAP $25.783 billion, up 52%.

EPS: GAAP $1.08, up 61% year over year. Non-GAAP $1.05, vs $1.01 forecast, up 54% year over year. Ex H20 impact $1.04.

Operating income: GAAP $28.44 billion, up 53% year over year. Operating cost $5.413 billion, up 38% year over year, well below sales growth.

Balance sheet is strong. Cash and marketable $56.791 billion. First half return to holder $24.3 billion via buyback and dividend. Remaining buyback auth $14.7 billion at quarter end, Board added $60 billion more on Aug 26, no expiry. Next dividend $0.01 per share, pay Oct 2, record Sep 11.

Why Data Center Hit $41.1 Billion?

Blackwell. Blackwell Data Center sales grew 17% quarter over quarter. CEO Jensen Huang said: "Blackwell is the AI platform the world has waited for, delivering huge leap, Blackwell Ultra build is ramping at full speed, demand is huge."

NVLink rack-scale is key, as reasoning model drives huge rise in train and infer throughput. Blackwell sits at core of that race.

Product side: RTX PRO 6000 Blackwell Server Edition is coming to top enterprise servers, with Disney, Foxconn, Hitachi, Hyundai Motor Group, Lilly, SAP and TSMC among first users. Spectrum-XGS Ethernet links split data centers for giga-scale AI.

Europe push is big. Work with France, Germany, Italy, Spain and UK to build Blackwell AI infra, plus first industrial AI cloud for European makers. DGX Cloud Lepton now links Europe devs to global compute grid.

Supercomputer side: Doudna US, JUPITER Germany, Blue Lion Germany, Isambard UK, FugakuNEXT Japan, all sped up with NVIDIA.

Software: Nemotron for sovereign large model tuning, to be live on Perplexity. Support for open gpt-oss model, with 1.5 million tokens per second on single Blackwell GB200 NVL72 rack.

MLPerf Training: Blackwell scored top at scale on every run. New NVFP4 4-bit format built for low infer lag for pre-train of next large model.

Why Gaming Up 49%?

GeForce RTX 5060 Blackwell powered launch became fastest ramping x60 class ever. DLSS 4 now in over 175 games and apps, with Borderlands 4, Resident Evil Requiem and Phantom Blade Zero next.

GeForce NOW gets Blackwell plus Install-to-Play, library now over 4,500 titles, doubled.

Auto and Robotics Up 69%

Full-stack DRIVE AV software now in full production for safe smart transport. DRIVE AGX Thor chip ship started, Jetson AGX Thor dev kit and production module now live for millions of robots.

Halos full-stack safety platform and Cosmos world model aim to speed robot build and roll-out.

H20 and China

Zero H20 sale to China based buyer in Q2. Only $650 million unrestricted H20 sale to buyer outside China plus $180 million reserve release. That lifted EPS by $0.01. Q3 outlook assumes zero H20 ship to China, a cautious view that helps margin.

Q3 FY26 Outlook: $54 Billion

Sales outlook $54.0 billion plus/minus 2%. That is up about 15.5% quarter over quarter and above $45.9 billion forecast. Gross margin GAAP 73.3% and non-GAAP 73.5% plus/minus 50 bps. Firm still sees mid-70% non-GAAP margin by year end.

Operating cost GAAP $5.9 billion, non-GAAP $4.2 billion outlook. Full year cost growth high 30% range. Other income $500 million, tax rate 16.5% plus/minus 1%.

Why Share Fell at First?

Even with beat, Data Center $41.1 billion was tiny bit below some high hope of $41.2 to $41.3 billion. That small miss plus AI bubble fear caused 3% to 5% after-hours drop. Yet last five times beat was followed by drop, stock rose to new peak within 30 days each time.

Big Picture

NVIDIA is no longer just chip maker, it is full-stack AI factory source. Blackwell, NVLink, Spectrum-XGS, DGX Cloud, Omniverse, DRIVE, Jetson Thor, Cosmos cover train, infer, game and robot with one core build.

Memory side also helps. SK Hynix and Samsung saw huge demand, Micron sales up 346% year over year, as HBM demand rises with Blackwell.

Three things to watch: Blackwell Ultra ramp pace, how much above $54 billion Q3 will print, and whether margin holds above 73.5%. If those hold, $4 trillion market cap stays in range.

Summary: $46.7 billion sales, 72.7% margin, $25.7 billion profit, $60 billion added buyback, and $54 billion record outlook. Huge is too small a word for this sheet.