NVIDIA and Fiscal (NASDAQ: NVDA) announced its financial results for the second quarter ending July 27, 2025, reporting revenue of $46.7 billion—a 6% increase from the previous quarter and a remarkable 56% growth compared to the same period last year. The company’s Blackwell Data Center segment experienced a sequential growth of 17%, underscoring NVIDIA’s leadership in AI-driven infrastructure.
The company noted that there were no H20 sales to China-based customers during the quarter. However, NVIDIA benefited from a $180 million release of previously reserved H20 inventory and generated approximately $650 million in unrestricted H20 sales to a customer outside of China. These strategic moves contributed to the company’s robust quarterly performance.
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Strong Margins and Earnings Growth
NVIDIA achieved GAAP and non-GAAP gross margins of 72.4% and 72.7%, respectively. Excluding the $180 million H20 release, the non-GAAP gross margin would have been 72.3%. GAAP and non-GAAP earnings per diluted share (EPS) were $1.08 and $1.05, respectively, while adjusted non-GAAP EPS, excluding H20-related releases, stood at $1.04.
Co-founder and CEO Jensen Huang highlighted the company’s AI leadership: “Blackwell is the AI platform the world has been waiting for, delivering an exceptional generational leap. Production of Blackwell Ultra is ramping at full speed, and demand is extraordinary. Our NVLink rack-scale computing is revolutionizing reasoning AI models, driving unparalleled performance in training and inference. The AI race is on, and Blackwell is at its center.”
Shareholder Returns and Dividend Plans
During the first half of fiscal 2026, NVIDIA returned $24.3 billion to shareholders through share repurchases and cash dividends. The company had $14.7 billion remaining under its share repurchase authorization at the end of Q2. On August 26, 2025, the Board of Directors approved an additional $60 billion to the company’s repurchase authorization, with no expiration. NVIDIA will distribute the next quarterly dividend of $0.01 per share on October 2, 2025, to shareholders of record on September 11, 2025.
Third Quarter Outlook
NVIDIA projects strong growth for Q3 fiscal 2026, with revenue expected to reach $54 billion, plus or minus 2%, without factoring in any H20 shipments to China. GAAP and non-GAAP gross margins are projected at 73.3% and 73.5%, respectively, with operating expenses estimated at $5.9 billion (GAAP) and $4.2 billion (non-GAAP). The company anticipates high-30% growth in operating expenses for the full fiscal year. Other income and expenses are expected to deliver a net income of approximately $500 million, excluding gains or losses from publicly held and non-marketable equity securities. NVIDIA also anticipates a GAAP and non-GAAP tax rate of around 16.5%, plus or minus 1%, excluding discrete items.
Data Center Leadership
NVIDIA’s Data Center segment achieved $41.1 billion in revenue for the quarter, marking a 5% sequential increase and a 56% year-over-year rise. Key developments include:
- The NVIDIA RTX PRO™ 6000 Blackwell Server Edition GPU is being adopted by leading enterprise servers worldwide, including Disney, Foxconn, Hitachi, Hyundai, Lilly, SAP, and TSMC.
- Introduction of NVIDIA® Spectrum-XGS Ethernet to interconnect distributed data centers for large-scale AI applications.
- Collaboration with European nations—including France, Germany, Italy, Spain, and the U.K.—to build NVIDIA Blackwell AI infrastructure, establishing the world’s first industrial AI cloud for European manufacturers.
- Expansion of NVIDIA DGX Cloud Lepton™ to connect Europe’s AI developers with NVIDIA’s global compute ecosystem.
- Partnerships with international organizations to accelerate AI supercomputing, including Doudna (U.S.), JUPITER and Blue Lion (Germany), Isambard (U.K.), and FugakuNEXT (Japan).
- Support for OpenAI’s open-weight gpt-oss models, achieving industry-leading gpt-oss-120b performance at 1.5 million tokens per second on a single Blackwell GB200 NVL72 rack-scale system.
- Strategic collaborations with Novo Nordisk and DCAI for advanced drug discovery.
- Demonstrated top performance on MLPerf Training benchmarks across AI workloads.
- Cooperation with Ansys and DCAI to enhance quantum algorithms for fluid dynamics using NVIDIA CUDA-Q™ on Denmark’s Gefion supercomputer.
- Introduction of NVFP4, a 4-bit precision format designed for high-speed inference in pretraining next-generation large language models.
Gaming and AI PCs Drive Revenue
The Gaming segment reported revenue of $4.3 billion, a 14% sequential increase and 49% year-over-year growth. Key highlights include:
- Launch of the Blackwell-powered NVIDIA GeForce RTX™ 5060 GPU, NVIDIA’s fastest-ramping x60-class GPU to date.
- Expansion of NVIDIA DLSS 4 technology to over 175 games, with integration in popular titles such as Borderlands 4, Resident Evil Requiem, and Phantom Blade Zero.
- Blackwell integration with GeForce NOW™, introducing the Install-to-Play feature, doubling the game library to over 4,500 titles.
- Partnership with OpenAI to optimize new open-weight models for RTX GPUs, supporting local inference in tools like Ollama, llama.cpp, and Microsoft AI Foundry Local.
Professional Visualization and Automotive Innovations
Professional Visualization revenue reached $601 million, up 18% sequentially and 32% year-over-year. NVIDIA announced new RTX PRO 4000 SFF Edition and RTX PRO 2000 Blackwell GPUs, expanded partnerships with Siemens for digitalized manufacturing, and released NVIDIA Omniverse™ libraries and SDKs for physical AI development.
The Automotive and Robotics segment grew 3% sequentially to $586 million, a 69% increase from the prior year. NVIDIA DRIVE™ AV software is now in full production, accelerating safe, intelligent transportation deployment. The company also launched the NVIDIA DRIVE AGX Thor™ system-on-a-chip, Jetson AGX Thor™ developer kit, and NVIDIA Halos full-stack safety platform for robotics. Additionally, NVIDIA Cosmos™ foundation models support the rapid development of robotics solutions across industries.
CFO Commentary
Colette Kress, NVIDIA’s executive vice president and CFO, provided detailed insights into the company’s Q2 performance and growth strategy, emphasizing continued investments in AI, data centers, and next-generation computing solutions. More information is available on NVIDIA’s investor relations website.
Conference Call and Webcast
NVIDIA hosted a live conference call and webcast on the day of the announcement, providing analysts and investors with insights into Q2 financial performance and strategic initiatives. The webcast is accessible and available for replay on NVIDIA’s investor website.
Non-GAAP Financial Measures
NVIDIA reports both GAAP and non-GAAP financial results to offer a clear perspective on operational performance. Non-GAAP measures exclude stock-based compensation, acquisition-related costs, gains/losses from equity securities, H20-related charges, and related tax impacts. This approach enables investors to better compare current results with prior periods and understand the company’s underlying performance.
Condensed Financial Highlights
- Revenue: $46.7 billion, up 6% sequentially, 56% YoY
- Data Center: $41.1 billion, 5% sequential growth
- Gaming: $4.3 billion, 14% sequential growth
- Professional Visualization: $601 million, 18% sequential growth
- Automotive & Robotics: $586 million, 3% sequential growth
- GAAP EPS: $1.08; Non-GAAP EPS: $1.05
Balance Sheet and Cash Flow Strength
NVIDIA maintains a robust balance sheet with $56.8 billion in cash, cash equivalents, and marketable securities. Net cash provided by operating activities reached $15.4 billion for the quarter, while free cash flow totaled $13.5 billion. Strategic investments in property, equipment, and intangible assets support ongoing growth in AI, data centers, and gaming technologies.
Frequently Asked Questions:
What were NVIDIA’s total revenues for Q2 Fiscal 2026?
NVIDIA reported $46.7 billion in revenue for Q2 Fiscal 2026, marking a 6% increase from the previous quarter and a 56% year-over-year growth.
How did NVIDIA’s Data Center segment perform?
The Blackwell Data Center revenue grew 17% sequentially, reinforcing NVIDIA’s leadership in AI-driven infrastructure.
What were the company’s gross margins?
For the quarter, NVIDIA achieved GAAP gross margin of 72.4% and non-GAAP gross margin of 72.7%. Excluding H20-related releases, the adjusted non-GAAP gross margin was 72.3%.
What were the earnings per share (EPS) for Q2?
NVIDIA reported GAAP EPS of $1.08 and non-GAAP EPS of $1.05. Excluding H20-related releases and related tax impacts, adjusted non-GAAP EPS stood at $1.04.
Did NVIDIA sell any $H20 products to China in this quarter?
No, there were no H20 sales to China-based customers during Q2. The company benefited from a $180 million release of previously reserved H20 inventory for customers outside China.
How much did NVIDIA return to shareholders in H1 Fiscal 2026?
NVIDIA returned $24.3 billion in share repurchases and cash dividends. The Board approved an additional $60 billion share repurchase authorization in August 2025.
Where can investors access NVIDIA’s full financial reports and conference calls?
Investors can access full reports, webcast replays, and detailed CFO commentary at NVIDIA Investor Relations.
Conclusion
NVIDIA’s Q2 Fiscal 2026 performance underscores its dominance in AI, gaming, and data center markets, with robust revenue growth, strong gross margins, and strategic innovations like the Blackwell platform driving market leadership. The company’s proactive shareholder returns, combined with ambitious Q3 outlooks, reflect both financial strength and confidence in future growth. As NVIDIA continues to expand its AI infrastructure and cutting-edge solutions across industries, it remains well-positioned to lead the next wave of technological transformation globally.