Executive Summary

NVIDIA delivered Q2 FY2026 revenue of $46.7B (+6% q/q, +56% y/y) with GAAP gross margin 72.4% and non-GAAP EPS $1.05, beating S&P Global consensus on revenue, EPS, and gross margin; Blackwell Data Center revenue grew 17% q/q .
Data Center revenue rose to $41.1B (+5% q/q, +56% y/y), with compute down 1% sequentially on a $4.0B H20 reduction, offset by networking +46% q/q to $7.3B (+98% y/y) on NVLink fabric, InfiniBand XDR, and Ethernet-for-AI adoption .
Q3 FY2026 guidance implies a material sequential step-up: revenue $54.0B ±2%, non-GAAP GM 73.5% ±50bps, OpEx (non-GAAP) ~$4.2B, OI&E ~$500M, tax rate 16.5% ±1%; full-year OpEx growth outlook raised to high-30% from mid-30% .
Strategic ramp of Blackwell Ultra is “at full speed,” while Rubin (next-gen) remains on schedule for next year; sovereign AI and enterprise AI pipelines are expanding, with $60B added to repurchase authorization and $10.0B returned to shareholders in Q2 .

What Went Well and What Went Wrong

What Went Well

Record-scale Blackwell ramp and demand: “Blackwell is the AI platform the world has been waiting for… demand is extraordinary” (Jensen Huang); Blackwell Data Center revenue grew 17% sequentially .
Networking strength: revenue $7.3B (+46% q/q, +98% y/y) from NVLink compute fabric (GB200/GB300 systems), InfiniBand XDR, and Spectrum‑X Ethernet for AI workloads .
Cash returns and balance sheet expansion: $10.0B returned (repurchases/dividends); cash, cash equivalents and marketable securities grew to $56.8B (+$3.1B q/q; +$22.0B y/y) .

What Went Wrong

China exposure/H20 disruption: no H20 sales to China in Q2; compute revenue -1% q/q due to $4.0B H20 reduction; H20 shipments excluded from Q3 outlook .
Gross margin y/y pressure: GAAP GM down ~270bps y/y as mix shifted toward full-scale data center systems versus Hopper HGX systems last year .
Working capital/taxes weighed on cash flow: operating cash flow fell to $15.4B q/q (from $27.4B) “mainly driven by $8.1B in taxes paid” and higher inventory/AR to support Blackwell Ultra ramp .

Financial Results

P&L vs prior periods

Metric	Q2 FY2025	Q1 FY2026	Q2 FY2026
Revenue ($USD Billions)	$30.040	$44.062	$46.743
Gross Margin (GAAP, %)	75.1%	60.5%	72.4%
Diluted EPS (GAAP, $)	$0.67	$0.76	$1.08
Diluted EPS (Non-GAAP, $)	$0.68	$0.81	$1.05

Notes: Q2 included $180M release of previously reserved H20 inventory; excluding this, non-GAAP GM 72.3% and non-GAAP EPS $1.04 .

Actuals vs S&P Global Consensus

Metric	Q2 FY2025	Q1 FY2026	Q2 FY2026
Revenue (Actual, $B)	30.040	44.062	46.743
Revenue (Consensus, $B)*	28.752	43.255	46.056
EPS Non-GAAP (Actual, $)	0.68	0.81	1.05
EPS (Consensus, $)*	0.644	0.750	1.009
Gross Margin GAAP (Actual, %)	75.146	60.524	72.424
Gross Margin (Consensus, %)*	75.673	67.071	72.178

Beats/misses: Q2 FY2026 revenue, EPS, and GM were above consensus; Q1 FY2026 gross margin missed given the H20 charge .
Values retrieved from S&P Global.*

Segment Breakdown (Reportable Segments)

Segment Revenue ($USD Millions)	Q2 FY2025	Q1 FY2026	Q2 FY2026
Compute & Networking	$26,446	$39,589	$41,331
Graphics	$3,594	$4,473	$5,412
Total	$30,040	$44,062	$46,743

Market Platforms

Platform Revenue ($USD Millions)	Q2 FY2025	Q1 FY2026	Q2 FY2026
Data Center	$26,272	$39,112	$41,096
Compute	$22,604	$34,155	$33,844
Networking	$3,668	$4,957	$7,252
Gaming	$2,880	$3,763	$4,287
Professional Visualization	$454	$509	$601
Automotive	$346	$567	$586
OEM and Other	$88	$111	$173
Total	$30,040	$44,062	$46,743

KPIs and Balance Sheet/Cash Flow

KPI	Q2 FY2025	Q1 FY2026	Q2 FY2026
Cash, Cash Equivalents & Marketable Securities ($B)	—	$53.7	$56.8
Accounts Receivable ($B) / DSO (days)	—	$22.1 / 46	$27.8 / 54
Inventory ($B)	—	$11.3	$15.0
Total Purchase Commitments ($B)	—	$29.8 (inventory/manufacturing)	$45.8 (incl. multi-year cloud)
Operating Cash Flow ($B)	$14.5	$27.4	$15.4
Free Cash Flow ($B)	$13.48	$26.14	$13.45
Shareholder Returns ($B)	—	$14.3 (Q1)	$10.0 (Q2: $9.7 buybacks + $0.244 dividends)
Repurchase Authorization ($B)	—	—	+$60.0 (added Aug 26, 2025)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q3 FY2026	n/a	$54.0B ±2%	New
GAAP Gross Margin	Q3 FY2026	n/a	73.3% ±50bps	New
Non-GAAP Gross Margin	Q3 FY2026	n/a	73.5% ±50bps	New
GAAP OpEx	Q3 FY2026	n/a	~$5.9B	New
Non-GAAP OpEx	Q3 FY2026	n/a	~$4.2B	New
OI&E (GAAP & Non-GAAP)	Q3 FY2026	~$450M (Q2 outlook)	~$500M	Raised
Tax Rate (GAAP & Non-GAAP)	Q3 FY2026	16.5% ±1%	16.5% ±1%	Maintained
Full-year OpEx Growth	FY2026	Mid-30%	High-30%	Raised
Dividends	Q2/Q3 timing	$0.01/share on Jul 3 (Q1)	$0.01/share on Oct 2 (Q3)	Maintained cadence
H20 in Outlook	Q3 FY2026	—	No H20 shipments assumed	Explicit exclusion

Earnings Call Themes & Trends

Topic	Q4 FY2025 (Q-2)	Q1 FY2026 (Q-1)	Q2 FY2026 (Current)	Trend
AI/Blackwell Ramp	Initial Blackwell ramp, $11B Q4 sales; GM in low-70s during ramp	Fastest ramp; GB200 NVLink 72 racks broadly deployed; GB300 sampling	Blackwell Ultra “full speed”; Blackwell revenue +17% q/q	Accelerating
Networking (NVLink/InfiniBand/Spectrum-X)	Transition from NVLink8+IB to NVLink72+Spectrum-X	Spectrum‑X annualizing >$8B; two major CSPs added	Networking $7.3B (+46% q/q); Spectrum‑XGS announced to connect distributed AI factories	Strong expansion
Supply Chain & Manufacturing	Complex rack systems; ramp improving	~1,000 NVL72 racks/week at major hyperscalers	Factory builds converted for GB300; full production underway	Capacity scaling
China/Geopolitics	China % of DC revenue ~half pre-controls	$8B Q2 H20 lost revenue; TAM $50B; export control impacts	No H20 to China in Q2; licenses emerging but excluded from Q3 guide; potential $2–$5B if issues resolve	Uncertain; excluded from guide
Sovereign AI	National AI projects highlighted (EU/UK/etc.)	~100 AI factories in flight, doubling y/y	Work with European nations; DGX Cloud Lepton expansion	Growing pipeline
Product Roadmap	Blackwell initial; Blackwell Ultra 2H	GB300 leveraging GB200 architecture; annual cadence through 2028	Rubin chips “in fab”; schedule for next year	On track
Robotics/Physical AI	DRIVE wins; Cosmos models	Isaac GR00T; robotics partners	Jetson Thor GA; robotics full-stack adoption; RealSense collaboration	Adoption rising

Management Commentary

“Blackwell is the AI platform the world has been waiting for… demand is extraordinary.” — Jensen Huang (CEO) .
“GAAP and non-GAAP gross margins… include a $180M benefit from releasing previously reserved H20 inventory; excluding this benefit, non-GAAP gross margins would have been 72.3%.” — Colette Kress (CFO) .
“We have not included H20 in our Q3 outlook… if geopolitical issues resolve, we should ship $2–$5B in H20 revenue in Q3.” — Colette Kress .
On ASICs vs NVIDIA platform: “Our architecture is general, end-to-end, and everywhere… perf-per-watt directly translates to revenues in power-limited data centers.” — Jensen Huang .
On Spectrum‑XGS: “Link data centers across cities, nations and continents into vast, giga-scale AI super-factories.” — Jensen Huang .

Q&A Highlights

China/H20 outlook: Licenses have begun but shipments excluded from Q3; potential $2–$5B H20 revenue contingent on geopolitics; USG has discussed a 15% revenue expectation for licensed H20 sales but no regulation codified .
Blackwell/Hopper/networking mix: Blackwell to drive the lion’s share of Q3 growth; Hopper (H100/H200) still selling; networking benefits from NVLink systems .
Competitive landscape: Customers weigh ASICs, but NVIDIA’s full-stack, perf-per-watt, and ecosystem ubiquity underpin platform preference, accelerating ROI in AI factories .
Spectrum‑XGS opportunity: Introduces “scale-across” to unify distributed data centers; hyperscalers (e.g., CoreWeave) early adopters .
Roadmap cadence: Blackwell Ultra in 2H; Rubin next year with multiple new chips; annual rhythm to optimize perf-per-watt and customer margins .

Estimates Context

Q2 FY2026 beats: Revenue $46.743B vs $46.056B*, EPS $1.05 vs $1.009*, GAAP GM 72.4% vs 72.18%*; sequential momentum and networking strength drove upside while compute faced H20 drag .
Prior quarters: Q1 FY2026 revenue and EPS beat,* but GM missed consensus due to the $4.5B H20 charge (non-GAAP GM ex-charge 71.3%) ; Q2 FY2025 revenue/EPS beat,* GM slightly below consensus.*
Q3 FY2026 guide ($54B ±2%, non-GAAP GM 73.5% ±50bps) likely necessitates upward revisions to near-term revenue and margin models; OI&E guided higher to ~$500M .
Values retrieved from S&P Global.*

Key Takeaways for Investors

Strong beat with guided acceleration: Sequential revenue guidance implies >$7B q/q increase and margin uplift; core demand in Blackwell and networking remains robust .
China remains a swing factor: No H20 included in outlook; optionality for $2–$5B in Q3 if issues resolve; monitor license flow and any regulatory updates .
Networking is a structural growth driver: NVLink rack-scale, InfiniBand XDR, and Spectrum‑X/Spectrum‑XGS materially expand attach rates and AI cluster efficiency (effective ROI) .
Capital returns and balance sheet flexibility: Added $60B to repurchase authorization and returned $10B in Q2; ample liquidity ($56.8B) supports investment and shareholder returns .
Watch product cadence and yield trajectories: Blackwell Ultra ramp and Rubin timing underpin perf-per-watt gains and margin normalization to mid-70% exit rates .
Sovereign/enterprise AI expansion: Multi-region sovereign AI and on-prem enterprise AI (RTX PRO servers) broaden demand beyond hyperscalers .
Trading implications: Near-term catalyst is Q3 revenue/margin guide; sensitivity to geopolitical/news on H20; incremental positives from Spectrum‑XGS deployment announcements .

Appendix: Additional Q2 Details

Data Center revenue drivers: LLMs, recommendation engines, generative and agentic AI; large CSPs ~50% of Data Center revenue; Blackwell recognized across all customer categories .
Geography/invoicing: Singapore billed revenue was 22% in Q2 (centralized invoicing); >99% of DC compute billed to Singapore was for U.S.-based customers .
Operating cash flow dynamics: Sequential decrease mainly due to $8.1B in taxes paid; AR and inventory increased to support Blackwell Ultra ramp .
Net other income: $2.2B, primarily gains in a publicly-held equity security; interest income $592M .
Dividend: $0.01 per share payable Oct 2, 2025; record date Sept 11, 2025 .

Citations:
Core financials, segments, and guidance:
Prior quarters (trend analysis):
Earnings call commentary and Q&A:
Other relevant press releases: Spectrum‑XGS ; RealSense+Jetson Thor collaboration

Values retrieved from S&P Global.*

NVIDIA CORP (NVDA)·Q2 2026 Earnings Summary