NVIDIA Reports Strong Q2 Fiscal 2026 Results with $46.7 Billion Revenue
Zach Anderson Aug 28, 2025 03:55
NVIDIA's Q2 fiscal 2026 revenue surged to $46.7 billion, marking a 56% year-over-year increase, driven by strong performance in data center and gaming sectors.
NVIDIA Corporation (NASDAQ: NVDA) announced a robust financial performance for the second quarter of fiscal 2026, ending July 27, 2025, with revenues reaching $46.7 billion. This figure represents a 6% increase from the previous quarter and a significant 56% rise compared to the same period last year, according to NVIDIA Newsroom.
Data Center and Gaming Sectors Drive Growth
The company's data center segment was a major contributor, reporting revenue of $41.1 billion, up 5% from the first quarter and 56% year-over-year. NVIDIA's Blackwell Data Center revenue saw a substantial 17% sequential growth, reflecting the increasing demand for AI capabilities.
In the gaming sector, NVIDIA achieved $4.3 billion in revenue, marking a 14% increase from the prior quarter and a 49% year-over-year rise. The launch of the Blackwell-powered NVIDIA GeForce RTX™ 5060, which quickly became the fastest-ramping x60-class GPU, significantly contributed to these results.
Financial Metrics and Shareholder Returns
NVIDIA's gross margins for the quarter stood at 72.4% GAAP and 72.7% non-GAAP. The company's GAAP and non-GAAP earnings per diluted share were $1.08 and $1.05, respectively. Excluding a $180 million release of previously reserved H20 inventory, the non-GAAP gross margin would have been 72.3%.
During the first half of fiscal 2026, NVIDIA returned $24.3 billion to shareholders through share repurchases and cash dividends. The company's board of directors approved an additional $60 billion to its share repurchase authorization, underscoring its commitment to shareholder value.
Outlook and Strategic Initiatives
Looking ahead to the third quarter of fiscal 2026, NVIDIA projects revenue to be approximately $54 billion, with expected GAAP and non-GAAP gross margins of 73.3% and 73.5%, respectively. The company anticipates continued strong demand for its AI platforms and solutions.
NVIDIA has made significant strides in expanding its data center and AI capabilities globally. It announced partnerships with major enterprises and governments in Europe to develop AI infrastructure, including the world's first industrial AI cloud for European manufacturers. Additionally, NVIDIA's collaboration with OpenAI and other tech giants aims to accelerate the deployment of advanced AI models.
Overall, NVIDIA's Q2 performance highlights its leadership in AI and computing technologies, positioning the company for sustained growth in the rapidly evolving tech landscape.
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