Nvidia Beats Its Private Outlook With $46.7bn Q2 Revenue

The company didn’t promote any H20 processors to China-based prospects, it talked about.

Nvidia made $46.7bn in earnings inside the second quarter of this 12 months, up 56pc 12 months on 12 months, beating its private outlook by spherical $1.5bn.

However, whereas Nvidia’s year-on-year earnings has exceeded 50pc every quarter since mid-2023, Q2 FY 2026 marked the company’s slowest improvement in that interval. Closing quarter, the company’s earnings improvement neared 70pc, bringing in merely larger than $44bn.

Whereas earnings is rising at a considerable tempo, Nvidia shares fell barely following the earnings title after the knowledge centre unit made marginally decrease than what estimates anticipated. The information centre unit, which houses its AI decisions, launched in $41.1bn, falling in want of estimates by spherical $240m.

The company talked about that Blackwell info centre earnings rose by 17pc from the first quarter. In Might, its new product line had reached $27bn in product sales, the company talked about, accounting for spherical 70pc of data centre earnings.

Nvidia has, for quite a few years, found itself within the midst of the US-China superior chip battle. In Q2, after weeks of negotiations and quite a lot of visits to the White House, Nvidia CEO and co-founder Jensen Huang managed to land an settlement with the US Trump administration to export their AI chips to China in a never-before-seen 15pc earnings sharing maintain the federal authorities. Though that has not however been finalised, based mostly on the company chief financial office Colette Kress.

“[US government] officers have expressed an expectation that the USG will acquire 15pc of the earnings generated from licensed H20 product sales,” Kress talked about on the Q2 earnings title.

“Nonetheless so far, the USG has not revealed a regulation codifying such a requirement.”

Estimates counsel that with out the chip curbs in place, Nvidia would have generated spherical $23bn in H20 chip product sales to China in 2025. Although, demand for the company’s AI chips are anticipated to drop the longer it stays in a foreign country, analysts urged.

Outside of the knowledge centre unit, Nvidia’s gaming division launched in $4.3bn in product sales, up 49pc from a 12 months prior to now. Earlier this month, the company talked about that its GPUs supposed for gaming could be able to run positive OpenAI fashions on personal pc methods.

In July, Nvidia made historic previous by turning into the first agency to briefly attain a $4trn valuation, highlighting merely how very important a part it performs inside the world AI race.

“One different spectacular effectivity by Nvidia, with indicators that curiosity of their state-of-the-art merchandise, similar to Blackwell, stays extreme,” commented Forrester senior analyst Alvin Nguyen.

“The company is making strategic strikes all through areas beneath their administration, along with continued progress of state-of-the-art info coronary heart GPUs, innovation in new improvement areas like robotics and bodily AI, and promoting use situations that drive elevated GPU purchases, similar to reasoning AI and rack-scale computing.”

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Jensen Huang, co-founder and CEO of Nvidia. Image: Fortune Worldwide Dialogue board/Flickr (CC BY-NC-ND 2.0)