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NVIDIA is cementing its role as a titan in the tech industry, announcing impressive financial results for the second quarter of fiscal 2026. The company reported a significant surge in revenue, reaching $46.7 billion, marking a 6% increase from the previous quarter and a massive 56% leap from the same period last year. This phenomenal growth is overwhelmingly powered by its flagship Data Center segment, which brought in $41.1 billion in revenue, also up 56% year-over-year and accounting for the vast majority of the company’s sales.
A key driver of this success is the Blackwell platform, which has become a cornerstone of the global AI race. NVIDIA’s CEO, Jensen Huang, highlighted the “extraordinary” demand for the Blackwell Ultra, stating that its production is now ramping up at full speed. Huang emphasized that NVIDIA’s revolutionary NVLink rack-scale computing is “arriving just in time as reasoning AI models drive orders-of-magnitude increases in training and inference performance.” The platform, particularly the Blackwell Data Center, saw a robust 17% sequential revenue growth, a testament to its market dominance in AI infrastructure. The company also announced key collaborations with European nations, including France, Germany, and the U.K., to build the world’s first industrial AI cloud, further fueling the region’s next industrial transformation.
Financial Strength and Strategic Moves
NVIDIA’s financial health is robust. The company’s GAAP and non-GAAP gross margins stood at 72.4% and 72.7%, respectively. These figures included a noteworthy $180 million release of previously reserved H20 inventory, which was part of approximately $650 million in unrestricted H20 sales to a customer outside of China. For the quarter, GAAP and non-GAAP earnings per diluted share were equally strong, with figures at $1.08 and $1.05. Excluding the H20 inventory release and related tax impact, non-GAAP diluted earnings per share would have been $1.04, still demonstrating solid profitability.
Demonstrating its commitment to shareholders, NVIDIA returned $24.3 billion in the first half of fiscal 2026 through share repurchases and cash dividends. The company’s board has also approved an additional $60.0 billion for its share repurchase program, signaling confidence in future performance.
Looking ahead, NVIDIA projects continued growth, with an outlook for third-quarter revenue to be $54.0 billion, plus or minus 2%. They also expect gross margins to remain high, with non-GAAP margins reaching around 73.5%.
Diversified Growth Across Key Sector
While the Data Center segment is the main engine of growth, other areas of NVIDIA’s business are also thriving.
Gaming: Revenue reached $4.3 billion, a 49% increase from a year ago. The launch of the Blackwell-powered NVIDIA GeForce RTX 5060 has been a monumental success, becoming the company’s fastest-ramping x60-class GPU ever. The GeForce NOW cloud gaming service also expanded its library to over 4,500 titles with the new Install-to-Play feature.
Professional Visualization: This segment saw revenue climb to $601 million, up 32% year-over-year, driven by new products like the RTX PRO 4000 SFF Edition and key partnerships, like the one with Siemens to digitalize manufacturing.
Automotive and Robotics: This division is accelerating, with revenue of $586 million, a remarkable 69% increase from the prior year. The full-stack NVIDIA DRIVE AV software platform and the powerful new Jetson AGX Thor developer kit are paving the way for advancements in intelligent transportation and general robotics.
These results paint a clear picture of a company at the forefront of the AI and accelerated computing revolution, with a strong financial foundation and a diverse portfolio of products poised for future expansion.
