AI Takeaway
NVIDIA delivered extraordinary Q2 FY2026 results with revenue surging 85.2% YoY to $81.6B, net income tripling to $58.3B, and gross margin expanding to 74.9%, driven by insatiable demand for AI computing infrastructure.
Revenue
$81.61B
++85.23% YoY
EPS (Basic)
$2.40
++211.69% YoY
Gross Margin
74.9%
++14.41% YoY
Operating Income
$53.54B
++147.42% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue reached $81.6B in Q2 FY2026, up 85.2% YoY from $44.1B, reflecting unprecedented demand for NVIDIA's data center GPUs and AI accelerators as hyperscalers and enterprises ramp AI infrastructure investments.
Source: Source: 10-Q Income Statement
Gross margin expanded 14.4 percentage points YoY to 74.9%, while operating margin surged 16.5 percentage points to 65.6%, indicating strong pricing power and operating leverage as high-margin data center products dominate the revenue mix.
Source: Source: 10-Q Income Statement & Key Ratios
Net income reached $58.3B, up 210.6% YoY from $18.8B, with net margin of 71.5% — an exceptionally high level of profitability reflecting both revenue scale and cost discipline relative to revenue growth.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockNVIDIA's revenue has become heavily dependent on AI infrastructure buildout by a concentrated set of hyperscale customers. Any slowdown in AI capital expenditure, customer digestion periods, or shifts in AI chip architecture preferences could cause sharp revenue deceleration. The 85.2% YoY growth rate is unlikely to be sustained indefinitely, creating potential for significant earnings disappointment.
Source: Source: 10-Q Income Statement & Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.87 versus the $1.79 analyst consensus — a +4.3% beat for Q1 FY2027.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $81.61B | $44.06B | +85.23% |
Cost of Revenue | $20.46B | $17.39B | +17.62% |
Gross Profit | $61.16B | $26.67B | +129.33% |
Operating Income | $53.54B | $21.64B | +147.42% |
Net Income | $58.32B | $18.77B | +210.63% |
EPS (Basic) | $2.40 | $0.77 | +211.69% |
EPS (Diluted) | $2.39 | $0.76 | +214.47% |
R&D Expense | $6.32B | $3.99B | +58.46% |
SG&A Expense | $1.3B | $1.04B | +24.88% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $259.47B | $125.25B | +107.16% |
Current Assets | $151B | $89.94B | +67.89% |
Total Liabilities | $64B | $41.41B | +54.55% |
Current Liabilities | $43.88B | $26.54B | +65.34% |
Stockholders' Equity | $195.47B | $83.84B | +133.14% |
Cash & Equivalents | $13.24B | $15.23B | -13.11% |
Long-Term Debt | $8.47B | $8.46B | +0.07% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $50.34B | $27.41B | +83.64% |
Investing Cash Flow | $-26.43B | $-5.22B | -406.69% |
Financing Cash Flow | $-21.28B | $-15.55B | -36.84% |
Dividends Paid | $243M | $244M | -0.41% |
Share Buybacks | $19.31B | $14.1B | +37.01% |
D&A | $997M | $611M | +63.18% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 74.9% | 60.5% | +14.41% |
Operating Margin | 65.6% | 49.1% | +16.49% |
Net Margin | 71.5% | — | — |
ROE | 29.8% | — | — |
ROA | 22.5% | — | — |
Current Ratio | $3.441 | — | — |
Debt to Equity | $0.327 | — | — |
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.
Other companies in Semiconductors
NVIDIA reported Q2 FY2026 diluted EPS of $2.39, up 214.5% from $0.76 in Q2 FY2025, and revenue of $81.6B, up 85.2% YoY. These results reflect a continuation of NVIDIA's pattern of delivering exceptional growth driven by AI infrastructure demand, though specific analyst consensus estimates are not included in the filing data.
The headline takeaways are: revenue surged 85.2% YoY to $81.6B, net income tripled to $58.3B (up 210.6%), and gross margin expanded to 74.9% from 60.5% a year ago. NVIDIA also generated $50.3B in operating cash flow and returned $19.3B to shareholders via buybacks, demonstrating both exceptional profitability and strong capital return discipline.
NVIDIA's revenue grew 85.2% year-over-year to $81.6B in Q2 FY2026, compared to $44.1B in Q2 FY2025. This growth is primarily attributable to surging demand for AI accelerators and data center GPUs as hyperscalers and enterprises aggressively invest in AI computing infrastructure.
NVIDIA's financial health is exceptionally strong: it holds a current ratio of 3.44, debt-to-equity of just 0.33, and generated $50.3B in operating cash flow in the quarter. Total assets reached $259.5B with stockholders' equity of $195.5B, while long-term debt remained low at $8.5B, reflecting a fortress balance sheet with minimal leverage.
Based on the financial data, key risks include NVIDIA's heavy dependence on continued AI infrastructure spending by a concentrated set of hyperscale customers, U.S. export control restrictions that could limit sales to China and other markets, and supply chain concentration risk given its reliance on TSMC for advanced chip manufacturing. The sharp acceleration in investing cash outflows to $26.4B also warrants monitoring for capital allocation efficiency.