NVDA: Q2 2026 Revenue Surges 56% to $46.7 Billion, EPS Exceeds Estimates on Strong AI Chip Demand

NVIDIA (NVDA.US) announced strong financial results for the second quarter of fiscal year 2026, with revenue reaching $46.7 billion, marking a 56% increase year-over-year. Non-GAAP diluted earnings per share (EPS) stood at $1.05, exceeding the analyst estimate of $1.00, and representing a 54% rise compared to the same period last year. These results highlight a period of significant growth for the company, driven by robust demand across its key segments.

Key Business Drivers

The Data Center segment was a primary growth engine, reporting revenue of $41.1 billion, up 56% from a year ago. A notable highlight within this segment was the 17% sequential growth in Blackwell Data Center revenue, reflecting strong adoption of NVIDIA’s latest AI platform. Additionally, Gaming revenue also saw substantial growth, increasing by 49% year-over-year to $4.3 billion, propelled by the launch of the Blackwell-powered NVIDIA GeForce RTX 5060.

Management Outlook

For the third quarter of fiscal 2026, NVIDIA anticipates continued momentum, projecting revenue to be $54.0 billion, plus or minus 2%. The company expects non-GAAP gross margins to be approximately 73.5%, with an outlook to exit the fiscal year in the mid-70% range for non-GAAP gross margins. Management emphasized the extraordinary demand for Blackwell, stating that production of Blackwell Ultra is ramping at full speed, underscoring the platform's central role in the ongoing AI race.

Strategic Developments and Market Trends

NVIDIA is actively expanding its global presence and strategic collaborations, particularly in the AI infrastructure space. The company announced initiatives to build Blackwell AI infrastructure with European nations and industry leaders, including the development of the world's first industrial AI cloud for European manufacturers. These efforts, along with the expansion of NVIDIA DGX Cloud Lepton, aim to fuel regional industrial transformations and connect developers to NVIDIA's global compute ecosystem, reinforcing its leadership in accelerated computing.