NVIDIA Q2 2026 Earnings Summary: Record Revenue, Blackwell Ramp, and AI Infrastructure Leadership
Driving Growth Across Data Center, Networking, Gaming, and Emerging AI Workloads
NVIDIA delivered another record quarter, with Q2 2026 revenue of $46.7 billion, slightly above consensus and above its outlook, reflecting continued strength in AI infrastructure demand. EPS came in at $1.05, exceeding expectations, while non-GAAP gross margin of 72.7% (72.3% ex-H20 benefit) surpassed guidance.
Data Center revenue led the quarter at $41.1 billion (+56% YoY), supported by strong Networking growth, Blackwell GB200/GB300 adoption, and resilient demand from hyperscalers, enterprises, and sovereign clients. Gaming achieved a record $4.3 billion, while Professional Visualization and Automotive grew 32% and 69% YoY, respectively, fueled by GeForce and Thor SoC adoption.
The company continues to scale its AI platform, encompassing chips, networking, and software, and announced an additional $60 billion share repurchase program, signaling confidence in long-term growth. Risks remain around China export restrictions, supply constraints, and geopolitical uncertainty, but NVIDIA’s secular tailwinds from agentic AI, inference workloads, and sovereign AI buildouts position the company for continued leadership and robust performance.
Key Financial Highlights
Revenue: $46.7B (+56% YoY)
EPS: $1.05 (beat consensus)
Non-GAAP Gross Margin: 72.7% (72.3% ex-H20)
Data Center Revenue: $41.1B (+56% YoY)
Gaming Revenue: $4.3B (record)
Professional Visualization: $601M (+32% YoY)
Automotive: $586M (+69% YoY)
Share Repurchase Authorization: $60B
Operational Momentum & Segment Highlights
NVIDIA’s Data Center segment showed strong AI-driven demand, despite a $4B sequential decline in H20 shipments. Networking grew 46% sequentially, driven by Spectrum-X and InfiniBand adoption. Blackwell GB200/GB300 architecture continues to ramp, offering 10x performance and efficiency gains versus Hopper. Gaming revenue hit a record $4.3 billion with strong uptake of Blackwell GeForce GPUs. Professional Visualization and Automotive segments continue to expand, including Thor SoC deployments in robotics, AI factories (Omniverse), and sovereign AI initiatives in Europe and the UK.
Financial Performance & Expense Management
NVIDIA maintained high operational leverage, with gross margin of 72.7% and EPS above expectations. While Data Center revenue was modestly affected by H20 transition and China restrictions, strength in Networking and Gaming offset the impact. The company continues to execute its capital return strategy with a $60B share repurchase authorization.
Outlook & Guidance
For Q3 2026, management expects revenue of $54B (+/-2%), above consensus, excluding China H20 shipments, with gross margin guided to 73.5%. Supply constraints are easing, Blackwell Ultra is ramping, and Rubin chips remain on track for 2026. They highlighted secular tailwinds from agentic AI, inference workloads, and sovereign buildouts as drivers of long-term growth, while noting risks from China export restrictions and geopolitical uncertainty.
Here’s Our Take
NVIDIA’s Q2 results underscore its unrivaled position in full-stack AI, with leadership spanning chips, networking, and software. Despite some China-related headwinds in Data Center revenue, strength across Networking, Gaming, Professional Visualization, and Automotive segments more than offsets any shortfall. The strong Blackwell ramp, growing AI adoption, and robust guidance reinforce NVIDIA’s ability to capitalize on the $3–4 trillion projected AI infrastructure opportunity over the next decade. With a new $60B share repurchase program and continued operational execution, the investment thesis for the company remains solid.
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