NVIDIA Q2 Profit Soars 59% as Blackwell AI Surge Fuels Record Revenue

NVIDIA (NASDAQ: NVDA) posted another blockbuster quarter, with revenue climbing 56% year-over-year to $46.7 billion in fiscal Q2 2026, driven by surging demand for its Blackwell AI platform. Net income surged 59% to $26.4 billion, while earnings per share rose to $1.08, beating estimates.

The company’s data center segment — the engine of its AI dominance — delivered $41.1 billion in revenue, up 56% from a year earlier, as hyperscalers, governments, and enterprises accelerated investment in AI infrastructure. NVIDIA highlighted rapid adoption of its Blackwell architecture across Europe, the U.S., and Asia, including collaborations with TSMC, Disney, Novo Nordisk, and leading sovereign AI developers.

Notably, NVIDIA reported no H20 GPU shipments to China during the quarter following tightened U.S. export controls, though it benefited from a $180 million release of previously reserved H20 inventory and $650 million in unrestricted sales to a customer outside China.

Gross margins hit 72.7% on a non-GAAP basis, boosted by strong pricing power, though excluding the H20 release margins stood at 72.3%. Operating income jumped 53% to $28.4 billion.

Beyond data centers, NVIDIA’s gaming business generated $4.3 billion, up 49% year-on-year, driven by the launch of the GeForce RTX 5060, its fastest-ramping x60-class GPU. Professional visualization and automotive revenues also posted double-digit growth, underscoring NVIDIA’s widening AI ecosystem.

The company underscored its position at the heart of the global AI race. CEO Jensen Huang declared that “Blackwell is the AI platform the world has been waiting for,” pointing to accelerating demand across training, inference, robotics, and quantum computing.

NVIDIA continues to deploy its massive cash flows toward shareholder returns. In the first half of fiscal 2026, it returned $24.3 billion via buybacks and dividends. Its board has now authorized an additional $60 billion in share repurchases with no expiration, bolstering one of the largest capital return programs in corporate history. A dividend of $0.01 per share will be paid October 2.

Looking ahead, NVIDIA guided Q3 revenue to a record $54 billion, plus or minus 2%, with gross margins expected to edge up to 73.5%. Management reaffirmed expectations of mid-70% gross margins exiting fiscal 2026, even without contributions from China H20 shipments.

The results cement NVIDIA’s dominance as the AI chip supplier of choice, amid surging demand from hyperscalers and sovereign governments building AI supercomputers. While export restrictions to China have curtailed one line of business, momentum in global AI infrastructure has more than offset the impact.