Original SEC Filing
View NVIDIA CORP's original 10-Q filing on SEC website
Visit Official SEC Filing🎯 NVIDIA's Q2 2026 Earnings: AI Inferno Continues, But Watch for the H20 Spark!
💡 Core Insight: NVIDIA is riding the AI wave to unprecedented heights, with Data Center revenue exploding. However, a massive H20 write-off and upcoming regulatory changes are flashing amber lights for the future, presenting both risks and potential licensing opportunities.
📊 Major Financial Highlights (Three Months Ended July 27, 2025)
| Metric | Value | Change (YoY) | Impact |
|---|---|---|---|
| Revenue | $46.74 billion | +56% | AI demand fueled explosive growth, exceeding expectations. |
| Net Income | $26.42 billion | +59% | Profitability soared, reflecting strong operational leverage. |
| Diluted EPS | $1.08 | +61% | Impressive earnings beat, delighting shareholders. |
| Gross Margin | 72.4% | -2.7 pts | Slight dip due to shift towards full-scale datacenter systems. |
| Operating Income | $28.44 billion | +53% | Strong growth, indicating efficient cost management relative to scale. |
| Data Center Revenue | $41.10 billion | +56% | The undisputed king, driving nearly 90% of total revenue. |
| Gaming Revenue | $4.29 billion | +49% | Healthy rebound, fueled by Blackwell architecture sales. |
💰 What Does This Report Signal?
Business Performance
NVIDIA's Q2 2026 results are nothing short of spectacular, largely driven by the insatiable demand for its accelerated computing platforms in the AI sector. The transition to the new Blackwell Ultra platforms, including GB300, is in full swing, and customers—especially large cloud service providers—are gobbling them up like hotcakes.
Good News 📈
- AI Dominance: The Data Center segment remains NVIDIA's crown jewel, contributing a staggering 87.9% of total revenue. Its 56% year-over-year growth signals that the AI boom is far from over. Imagine being the sole provider of gasoline during a gold rush – that's NVIDIA in the AI era.
- Blackwell Ramp-Up: The rapid deployment of the Blackwell architecture, including Blackwell Ultra, is powering significant sequential growth in Data Center, proving NVIDIA's innovation engine is firing on all cylinders.
- Solid Gaming Rebound: After some turbulence, Gaming revenue is showing robust recovery (+49% YoY), indicating strong consumer demand for NVIDIA's latest Blackwell GPUs.
- Exceptional Profitability: Net income growing faster than revenue (+59% vs +56%) highlights operational efficiency and strong pricing power in the booming AI market.
- Massive Share Buyback Authorization: A fresh $60.0 billion share repurchase authorization signals management's confidence in future performance and commitment to returning capital to shareholders. This is like a company buying back shares from the market, reducing the total number of shares available, which can boost EPS and signal undervaluation to investors.
Bad News 📉
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