A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
In Q2 FY2026, NVIDIA generated $46.74B in revenue (up 55.6% YoY) and $26.42B in net income, driven by robust data center demand for its Blackwell AI platform despite gross margin compression to 72.4% caused by product mix shifts and export control challenges.
Revenue
$46.74B
+55.60% YoY
EPS (Diluted)
$1.08
+61.19% YoY
Gross Margin
72.4%
-2.7 pts YoY
Operating Income
$28.44B
+52.56% YoY
Nvidia (NVDA) reported Q2 FY2026 revenue of $46.74B, up 55.6% year over year. The company posted net income of $26.42B, up 59.2% from a year earlier, with diluted EPS of $1.08. Gross margin was 72.4%. Operating income was $28.44B, up 52.6% year over year. The company returned $244M of dividends to shareholders. NVDA's fiscal Q2 FY2026 corresponds to calendar Q3 2025.
NVIDIA posted Q2 FY2026 revenue of $46.74B (+55.6% YoY) and net income of $26.42B (+59.2% YoY), propelled by Data Center demand and Blackwell platform rollouts.
Last 4 quarters: 4 beats
Adjusted (non-GAAP) EPS of $1.05 versus the $1.03 analyst consensus — a +2.1% beat for Sep 2025. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.08.
Data Center revenue reached $41.1B (+56% YoY), accounting for 88% of total revenue ($46.74B). Compute revenue grew 50% YoY to $33.8B, while Networking revenue surged 98% YoY to $7.3B on strong NVLink, InfiniBand, and Ethernet adoption. Blackwell architecture revenue grew 17% sequentially as production shipments of GB300 systems began.
Source: 10-Q Item 2 MD&A, p.24-25
Following a $4.5B inventory charge in Q1 FY2026 due to U.S. export license restrictions on H20 products for China, NVIDIA recognized $650M in H20 sales to an unrestricted non-China customer in Q2 FY2026. This resulted in a $180M release of previously reserved H20 inventory, with zero H20 shipments made to China.
Source: 10-Q Item 2 MD&A, p.24
Customer concentration remains significant, with two direct customers in Compute & Networking accounting for 23% (Customer A) and 16% (Customer B) of total Q2 FY2026 revenue. Large cloud service providers represented approximately 50% of Data Center revenue.
Source: 10-Q Item 2 MD&A, p.25, 27
NVIDIA repurchased $9.7B of common stock in Q2 FY2026 ($23.82B cumulative YTD). On August 26, 2025, the Board approved an additional $60.0B share repurchase authorization, bringing total available authorization to $71.2B.
Source: 10-Q Item 2 MD&A, p.30
Unpredictable U.S. export rules and licensing requirements targeting GPUs (such as H20, H200, GB200, and GB300) to China and other international tiers can foreclose major market opportunities, cause significant inventory write-downs, disrupt distribution, and advantage foreign competitors not subject to U.S. controls.
Source: 10-Q Item 1A, p.34-36
The rapid rise of widely accessible open-source AI models could harm NVIDIA's business if key models are optimized or deployed primarily on non-NVIDIA platforms. Maintaining high developer engagement across software and hardware is critical to supporting long-term demand.
Source: 10-Q Item 2 MD&A, p.25
Transitioning rapidly to complex Blackwell Ultra systems risks inventory mismatches, production delays, and supply volatility. Additionally, customer buildouts of AI infrastructure depend heavily on the external availability of data center space, power energy supplies, and massive capital.
Source: 10-Q Item 2 MD&A, p.24-25
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
Nvidia (NVDA) is next expected to report on , when the following quarter's results and any updated outlook will be available.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $46.74B | $30.04B | +55.60% |
Cost of Revenue | $12.89B | $7.47B | +72.65% |
Gross Profit | $33.85B | $22.57B | +49.96% |
Operating Income | $28.44B | $18.64B | +52.56% |
Net Income | $26.42B | $16.6B | +59.18% |
EPS (Basic) | $1.08 | $0.68 | +58.82% |
EPS (Diluted) | $1.08 | $0.67 | +61.19% |
R&D Expense | $4.29B | $3.09B | +38.87% |
SG&A Expense | $1.12B | $842M | +33.25% |
NVIDIA generated $46.74B in total revenue (+55.6% YoY) and $26.42B in net income (+59.2% YoY) in Q2 FY2026. Growth was anchored by the Data Center business, which rose 56% YoY to $41.1B due to Blackwell chip adoption. Gross margin stood at 72.4%, impacted by product transitions to full-scale datacenter systems.
Data Center revenue hit $41.1B in Q2 FY2026, up 56% year-over-year. Compute revenue reached $33.8B (+50% YoY), while Networking revenue surged 98% YoY to $7.3B, driven by NVLink compute fabric adoption for GB200 and GB300 systems.
NVIDIA emphasized risk surrounding U.S. export controls on AI chips, which previously prompted a $4.5B H20 inventory charge in Q1 FY2026. Additional highlighted risks include supply constraints during the Blackwell Ultra transition, power and infrastructure availability for customers, and open-source AI adoption.
NVIDIA repurchased $9.7B of its common stock during Q2 FY2026, bringing fiscal year-to-date buybacks to $23.82B. Furthermore, the Board authorized a new $60.0B share repurchase program on August 26, 2025.
Nvidia (NVDA) is next expected to report earnings on Aug 26, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
NVIDIA delivered exceptional Q1 FY2027 operating growth, with revenue up 85% year over year to $81.6B and operating income up 147% to $53.5B, while net income was further boosted by $15.9B of other income, primarily unrealized investment gains. Source: 10-Q Item 2 MD&A, pp.24, 27.
NVIDIA delivered exceptional FY2026 results with revenue surging 65.5% YoY to $215.9B and net income jumping 64.7% to $120.1B, driven by explosive demand for AI computing infrastructure.
NVIDIA reported a significant 62.5% year-over-year revenue increase in Q3 FY2026, driven by strong demand and operational efficiency, despite slight margin compression.
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