Discover Nvidia’s Q2 FY2026 earnings report: $46.7B in revenue (up 56% YoY), AI chip demand, supply chain challenges with China, $60B buyback, and cautious outlook — all unpacked.
Nvidia NVDA Earnings Report—Q2 FY2026 Highlights
Nvidia delivered a remarkably strong Q2 FY2026, posting $46.7 billion in revenue, a 56% year-over-year increase, and $41.1 billion from its data center business—solidify its dominance in AI hardware. However, investor sentiment turned cautious in after-hours trading despite these strong figures.NVIDIA NewsroomAP News+1
Here are the key numbers at a glance:
- Revenue: $46.7B (+56% YoY, +6% QoQ)
- Data Center Revenue: $41.1B (+56% YoY)NVIDIA NewsroomAP News
- EPS (Non-GAAP): $1.05 per shareInvestorsNVIDIA Newsroom
- Revenue Guidance for Q3: ~$54BAP NewsReuters
- Share Buyback: Expanded to a massive $60BNVIDIA NewsroomReuters
- Gross Margins (Non-GAAP): ~72.7%NVIDIA Newsroom
Market Reaction & Investor Sentiment
Despite Nvidia beating expectations, shares fell around 3% in after-hours trading. Investor concerns stemmed from multiple sources:
- Data Center Revenue Shortfall: While still massive, it didn’t meet lofty analyst projections.AP NewsThe Economic Times
- Uncertainty in China: No H20 chip sales were recorded in China for Q2, and the company gave no clear guidance for growth there. Geopolitical tensions and export restrictions are vital roadblocks.Financial Times+1Business Insider
Even optimistic voices like Peter Thiel warned about possible overvaluation and bubble-like conditions tied to AI exuberance.The Times of India
Yet, analysts at Jefferies and Truist remain optimistic—citing Nvidia’s structural strength and potential recovery in China, possibly adding $2–5B in revenue.Barron’s
Strategic Outlook: What’s Next for Nvidia?
- Blackwell Momentum: The Blackwell AI platform is ramping up with strong sequential growth, highlighting Nvidia’s technological edge.NVIDIA NewsroomThe Wall Street Journal
- China’s Role: With effective agreement in place—subject to a 15% revenue share—H20 chip sales to China may unlock billions in future revenue.Financial TimesReuters
- AI Boom Continues: Nvidia remains at the heart of a global AI infrastructure expansion, with forecasts estimating $3–4 trillion in total tech investment over the decade.Barron’s
FAQs – Nvidia NVDA Earnings Report
Q1: What was Nvidia’s Q2 revenue?
A1: Nvidia reported $46.7 billion, up 56% year-over-year.NVIDIA NewsroomAP News
Q2: Why did the stock fall despite strong results?
A2: Investor concerns over data center revenue softness, uncertainty in China, and a cautious longer-term outlook drove shares lower.The Economic TimesFinancial TimesThe Times of India
Q3: What’s in Nvidia’s Q3 guidance?
A3: Nvidia forecasted about $54 billion in revenue.AP NewsReuters
Q4: How large is the share buyback?
A4: Nvidia approved a $60 billion share buyback authorization.NVIDIA NewsroomReuters
Q5: Is Nvidia overvalued?
A5: Some risk-savvy investors view it cautiously, but many analysts remain bullish, citing structural dominance in AI and long-term growth potential.The Times of IndiaBarron’s
Final Word
Nvidia’s Q2 FY2026 earnings report painted a picture of both astonishing growth and strategic fragility. The company’s leadership in AI computing, through platforms like Blackwell, and aggressive investment in shareholder returns set it apart. However, geopolitical risks, particularly in China, and signals of decelerating growth introduced a dose of realism to an otherwise electrifying performance.
If you’re an investor, balancing Nvidia’s innovation trajectory with external risks is key. The AI race is still on—but so is the regulatory and economic complexity at its core.
