NVIDIA reported a standout QQ2 2026 quarter with revenue of $46.743 billion, up 33.24% year over year and 6.08% quarter over quarter. Gross profit reached $33.853 billion, yielding a gross margin of 72.42%, while operating income was $28.44 billion and net income $26.42 billion, translating to an EPS of $1.08. The quarter underscores NVIDIA’s AI-driven data center and gaming ecosystem strength, supported by a highly levered balance sheet and strong cash flow generation. Cash flow from operating activities amounted to $15.37 billion, with free cash flow of $13.47 billion. The company continued to return capital to shareholders through sizable share repurchases (~$9.72 billion) and modest dividends, and maintained a robust liquidity position (cash and short-term investments of ~$56.8 billion) with a net cash position. While the near-term outlook is driven by AI datacenter demand and product cycles, NVIDIA’s moat rests on its software-enabled AI ecosystem and strategic data center stack, which support durable profitability and optionality for future growth. Investors should monitor AI deployment intensity, hyperscaler demand, and potential regulatory/export considerations in key geographies as AI adoption scales.