NVIDIA Announces Financial Results for Second Quarter Fiscal 2026
Revenue of $46.7 billion, up 6% from Q1 and up 56% from a year ago
Data Center revenue of $41.1 billion, up 5% from Q1 and up 56% from a year ago
Blackwell Data Center revenue grew 17% sequentially
SANTA CLARA, Calif., Aug. 27, 2025 (GLOBE NEWSWIRE) -- NVIDIA (NASDAQ:NVDA) today reported revenue for the second quarter ended July 27, 2025, of $46.7 billion, up 6% from the previous quarter and up 56% from a year ago. NVIDIA's Blackwell Data Center revenue grew 17% sequentially.
There were no H20 sales to China-based customers in the second quarter. NVIDIA benefited from a $180 million release of previously reserved H20 inventory, from approximately $650 million in unrestricted H20 sales to a customer outside of China.
For the quarter, GAAP and non-GAAP gross margins were 72.4% and 72.7%, respectively. Excluding the $180 million release, non-GAAP gross margin for the quarter would have been 72.3%.
For the quarter, GAAP and non-GAAP earnings per diluted share were $1.08 and $1.05, respectively. Excluding the $180 million release and related tax impact, non-GAAP diluted earnings per share for the quarter would have been $1.04.
"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," said Jensen Huang, founder and CEO of NVIDIA. "NVIDIA NVLink rack-scale computing is revolutionary, arriving just in time as reasoning AI models drive orders-of-magnitude increases in training and inference performance. The AI race is on, and Blackwell is the platform at its center."
During the first half of fiscal 2026, NVIDIA returned $24.3 billion to shareholders in the form of shares repurchased and cash dividends. As of the end of the second quarter, the company had $14.7 billion remaining under its share repurchase authorization. On August 26, 2025, the Board of Directors approved an additional $60.0 billion to the Company's share repurchase authorization, without expiration.
NVIDIA will pay its next quarterly cash dividend of $0.01 per share on October 2, 2025, to all shareholders of record on September 11, 2025.
Q2 Fiscal 2026 Summary
GAAP
($ in millions, except earningsper share)
Q2 FY26
Q1 FY26
Q2 FY25
Q/Q
Y/Y
Revenue
$46,743
$44,062
$30,040
6%
56%
Gross margin
72.4%
60.5%
75.1%
11.9 pts
(2.7) pts
Operating expenses
$5,413
$5,030
$3,932
8%
38%
Operating income
$28,440
$21,638
$18,642
31%
53%
Net income
$26,422
$18,775
$16,599
41%
59%
Diluted earnings per share
$1.08
$0.76
$0.67
42%
61%
Non-GAAP
($ in millions, except earningsper share)
Q2 FY26
Q1 FY26
Q2 FY25
Q/Q
Y/Y
Revenue
$46,743
$44,062
$30,040
6%
56%
Gross margin
72.7%
61.0%
75.7%
11.7 pts
(3.0) pts
Gross margin excluding H20 related charges/releases, net
72.3%
71.3%
1.0 pt
Operating expenses
$3,795
$3,583
$2,792
6%
36%
Operating income
$30,165
$23,275
$19,937
30%
51%
Net income
$25,783
$19,894
$16,952
30%
52%
Diluted earnings per share
$1.05
$0.81
$0.68
30%
54%
Diluted earnings per share excluding H20 related charges/releases, net and related tax impact
$1.04
$0.96
8%
OutlookNVIDIA's outlook for the third quarter of fiscal 2026 is as follows:
Revenue is expected to be $54.0 billion, plus or minus 2%. The company has not assumed any H20 shipments to China in the outlook.
GAAP and non-GAAP gross margins are expected to be 73.3% and 73.5%, respectively, plus or minus 50 basis points. The company continues to expect to exit the year with non-GAAP gross margins in the mid-70% range.
GAAP and non-GAAP operating expenses are expected to be approximately $5.9 billion and $4.2 billion, respectively. Full year fiscal 2026 operating expense growth is expected to be in the high-30% range.
GAAP and non-GAAP other income and expense are expected to be an income of approximately $500 million, excluding gains and losses from non-marketable and publicly-held equity securities.
GAAP and non-GAAP tax rates are expected to be 16.5%, plus or minus 1%, excluding any discrete items.
HighlightsNVIDIA achieved progress since its first quarter earnings announcement in these areas:
Data Center
Second-quarter revenue was $41.1 billion, up 5% from the previous quarter and up 56% from a year ago.
Announced that the NVIDIA RTX PRO™ 6000 Blackwell Server Edition GPU is coming to the world's most popular enterprise servers; Disney, Foxconn, Hitachi Ltd., Hyundai Motor Group, Lilly, SAP and TSMC are among the first to adopt the servers.
Introduced NVIDIA® Spectrum-XGS Ethernet to connect distributed data centers for giga-scale AI.
Revealed that NVIDIA is working with European nations, including France, Germany, Italy, Spain and the U.K., as well as technology industry leaders to build NVIDIA Blackwell AI infrastructure, including the world's first industrial AI cloud for European manufacturers, to fuel region's next industrial transformation.
Announced the expansion of NVIDIA DGX Cloud Lepton™ to connect Europe's developers to NVIDIA's global compute ecosystem.
Collaborated with partners globally to build and accelerate advanced AI supercomputers, including Doudna (U.S.), JUPITER (Germany), Blue Lion (Germany), Isambard (U.K.) and FugakuNEXT (Japan).
Revealed that model builders across Europe and the Middle East are optimizing their sovereign large language models with NVIDIA Nemotron™, which will be available on Perplexity.
Supported the launch of OpenAI's open gpt-oss models, delivering industry-leading gpt-oss-120b performance of 1.5 million tokens per second on a single NVIDIA Blackwell GB200 NVL72 rack-scale system.
Announced a collaboration with Novo Nordisk and DCAI to advance drug discovery.
Revealed that the NVIDIA Blackwell platform delivered the highest performance at scale on every MLPerf Training benchmark.
Teamed with Ansys and DCAI to advance quantum algorithms for fluid dynamics using the NVIDIA CUDA-Q™ platform on Denmark's Gefion supercomputer.
Introduced NVFP4, a 4-bit format purpose-built to deliver exceptional inference latency, for pretraining next-generation large language models.
Gaming and AI PC
Second-quarter Gaming revenue was $4.3 billion, up 14% from the previous quarter and up 49% from a year ago.
Launched the Blackwell-powered NVIDIA GeForce RTX™ 5060, which quickly became NVIDIA's fastest-ramping x60-class GPU ever.
Made industry-leading NVIDIA DLSS 4 technology available in over 175 games and apps, and coming to top games such as Borderlands 4, Resident Evil Requiem and Phantom Blade Zero.
Announced Blackwell coming to GeForce NOW™ with the new Install-to-Play feature, doubling the game library to over 4,500 titles.
Partnered with OpenAI on the launch of its newest open-weight models optimized for RTX GPUs for fast, local inference in popular tools like Ollama, llama.cpp and Microsoft AI Foundry Local.
Professional Visualization
Second-quarter revenue was $601 million, up 18% from the previous quarter and up 32% from a year ago.
Announced NVIDIA RTX PRO 4000 SFF Edition and RTX PRO 2000 Blackwell GPUs.
Expanded partnership with Siemens to digitalize and enable the manufacturing factory of the future.
Announced new NVIDIA Omniverse™ libraries and software development kits to accelerate physical AI development.
Automotive and Robotics
Second-quarter Automotive revenue was $586 million, up 3% from the previous quarter and up 69% from a year ago.
Announced that the full-stack NVIDIA DRIVE™ AV software platform is now in full production to accelerate the large-scale deployment of safe, intelligent transportation.
Achieved second consecutive win in the End-to-End Driving at Scale category of the Autonomous Grand Challenge at the Computer Vision and Pattern Recognition conference.
Commenced initial shipments of the NVIDIA DRIVE AGX Thor™ system-on-a-chip.
Announced the general availability of NVIDIA Jetson AGX Thor™ developer kit and production modules, powerful new AI supercomputers designed to power millions of robots across industries.
Released the NVIDIA Halos full-stack safety platform for robotic development.
Announced new NVIDIA Cosmos™ world foundation models that accelerate the development and deployment of robotics solutions.
CFO CommentaryCommentary on the quarter by Colette Kress, NVIDIA's executive vice president and chief financial officer, is available at https://investor.nvidia.com.
Conference Call and Webcast InformationNVIDIA will conduct a conference call with analysts and investors to discuss its second quarter fiscal 2026 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA's investor relations website, https://investor.nvidia.com. The webcast will be recorded and available for replay until NVIDIA's conference call to discuss its financial results for its third quarter of fiscal 2026.
Non-GAAP MeasuresTo supplement NVIDIA's condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, and free cash flow. For NVIDIA's investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense, acquisition-related and other costs, other, gains/losses from non-marketable and publicly-held equity securities, net, interest expense related to amortization of debt discount, H20 related charges/releases, net and the associated tax impact of these items where applicable. The inclusion of H20 related charges/releases, net in the reconciliations to adjust the related GAAP financial measures was a result of the U.S. government informing NVIDIA in April 2025 that it requires a license for export to China of H20 product. The H20 product was designed primarily for the China market. Free cash flow is calculated as GAAP net cash provided by operating activities less both purchases related to property and equipment and intangible assets and principal payments on property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user's overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and the company's non-GAAP measures may be different from non-GAAP measures used by other companies.
NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
Three Months Ended
Six Months Ended
July 27,
July 28,
July 27,
July 28,
2025
2024
2025
2024
Revenue
$
46,743
$
30,040
$
90,805
$
56,084
Cost of revenue
12,890
7,466
30,284
13,105
Gross profit
33,853
22,574
60,521
42,979
Operating expenses
Research and development
4,291
3,090
8,280
5,810
Sales, general and administrative
1,122
842
2,163
1,618
Total operating expenses
5,413
3,932
10,443
7,428
Operating income
28,440
18,642
50,078
35,551
Interest income
592
444
1,108
803
Interest expense
(62
)
(61
)
(124
)
(125
)
Other income (expense), net
2,236
189
2,055
264
Total other income (expense), net
2,766
572
3,039
942
Income before income tax
31,206
19,214
53,117
36,493
Income tax expense
4,784
2,615
7,920
5,013
Net income
$
26,422
$
16,599
$
45,197
$
31,480
Net income per share:
Basic
$
1.08
$
0.68
$
1.85
$
1.28
Diluted
$
1.08
$
0.67
$
1.84
$
1.27
Weighted average shares used in per share computation:
Basic
24,366
24,578
24,404
24,599
Diluted
24,532
24,848
24,571
24,869
NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
July 27,
January 26,
2025
2025
ASSETS
Current assets:
Cash, cash equivalents and marketable securities
$
56,791
$
43,210
Accounts receivable, net
27,808
23,065
Inventories
14,962
10,080
Prepaid expenses and other current assets
2,658
3,771
Total current assets
102,219
80,126
Property and equipment, net
9,141
6,283
Operating lease assets
2,084
1,793
Goodwill
5,755
5,188
Intangible assets, net
755
807
Deferred income tax assets
13,570
10,979
Other assets
7,216
6,425
Total assets
$
140,740
$
111,601
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
9,064
$
6,310
Accrued and other current liabilities
15,193
11,737
Total current liabilities
24,257
18,047
Long-term debt
8,466
8,463
Long-term operating lease liabilities
1,831
1,519
Other long-term liabilities
6,055
4,245
Total liabilities
40,609
32,274
Shareholders' equity
100,131
79,327
Total liabilities and shareholders' equity
$
140,740
$
111,601
NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended
Six Months Ended
July 27,
July 28,
July 27,
July 28,
2025
2024
2025
2024
Cash flows from operating activities:
Net income
$
