Key Metrics
54.02
Heat Index-
Impact LevelMedium
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Scope LevelNational
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Last Update2025-08-27
Key Impacts
Negative Impacts (9)
Event Overview
Demonstrating robust year-over-year growth, major technology firms sometimes report surges in overall revenue and profitability, even as specific business segments underperform against expectations. Earnings releases for such companies often draw scrutiny for signals related to shifting market demand, regional exposures, and evolving investor sentiment, particularly when results influence broader market indices and capital flows. Variances between actual performance and forecasts can impact future investment strategies and corporate positioning.
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Nvidia Reports $46.7 Billion Revenue for Q2 Fiscal 2026, Data Center Sales Miss Forecasts
Nvidia reported revenue of $46.7 billion for the second quarter of fiscal 2026, ending July 27, 2025, representing a 6% increase from the previous quarter and a 56% increase from the same period a year ago. The company's net income rose by 59% to $26.42 billion, or $1.05 per share, compared to $16.6 billion, or $0.67 per share, in the year-ago period. GAAP and non-GAAP gross margins for the quarter were 72.4% and 72.7%, respectively. Excluding a $180 million release of previously reserved H20 inventory, non-GAAP gross margin would have been 72.3%.
Nvidia’s growth was driven by its data center business, whose revenue increased 56% year-over-year to $41.1 billion. However, this was below a StreetAccount estimate of $41.34 billion, and the company’s stock declined in extended trading following the report. Nvidia sold no H20 chips to China during the quarter but benefited from $180 million in H20 sales to a customer outside of China. Colette Kress, Nvidia's finance chief, stated that Nvidia could ship between $2 billion and $5 billion in H20 revenue during the next quarter if the geopolitical environment permits.
Nvidia returned $24.3 billion to shareholders during the first half of fiscal 2026 through share repurchases and dividends, and its board approved an additional $60 billion in share repurchase authorization. The next quarterly cash dividend of $0.01 per share will be paid on October 2, 2025. CEO Jensen Huang highlighted the high demand for Nvidia’s Blackwell AI platform, stating, “Blackwell is the AI platform the world has been waiting for, delivering an exceptional generational leap.”
Nvidia to Release Second-Quarter Earnings After Market Close
Nvidia is scheduled to report its second-quarter earnings after the market closes. Investors are focused on potential signals of growth in these earnings and are closely watching for any updates related to China and Nvidia's future growth prospects. Ahead of the earnings announcement, the Dow, S&P 500, and Nasdaq stock indices have risen in anticipation.