NVIDIA announced its financial results for the second quarter of fiscal year 2026, which ended on July 27, 2025. Here are the key highlights:
- Revenue: The company reported a record revenue of $46.7 billion, which is a 56% increase from the same period last year and a 6% increase from the previous quarter. This exceeded Wall Street’s forecast of approximately $46.1 billion.
- Earnings: GAAP diluted earnings per share were $1.08, and non-GAAP diluted earnings per share were $1.05, both surpassing analyst expectations.
- Data Center: The data center segment was a major driver of growth, with revenue of $41.1 billion, a 56% increase year-over-year.
- Shareholder Returns: The company returned $10 billion to shareholders through repurchases and dividends. The board also approved an additional $60 billion for share repurchases.
- Outlook: NVIDIA provided a strong outlook for the third quarter of fiscal 2026, with an expected revenue of $54 billion.
Outlook
NVIDIA’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.
Highlights
NVIDIA achieved progress since its first quarter earnings announcement in these areas: