Executive Summary
NVIDIA reported a standout QQ2 2026 performance driven by exceptionally strong data center AI demand. Revenue reached $46.74 billion, up 33.2% year-over-year and 6.1% quarter-over-quarter, while gross margin remained exceptionally high at 72.4%, supporting an operating income of $28.44 billion and net income of $26.42 billion. The company generated substantial operating cash flow of $15.37 billion and free cash flow of $13.47 billion, enabling aggressive capital returns including $9.72 billion in share repurchases and $0.244 billion in dividends. Net cash positioning remained robust with a net cash balance near break-even to modestly net cash on the balance sheet, underscoring financial flexibility to fund growth and returns.
The quarter reinforces NVIDIA’s leadership in AI compute, particularly in hyperscale data centers, HPC, and AI inference workloads. The favorable product mix, strong pricing power, and high-margin, asset-light operating model drove profitability to multi-quarter highs, while an ample liquidity position supports continued buybacks and potential strategic investments. However, the earnings trajectory remains highly cyclical and correlated with AI capex cycles, and investors should monitor ongoing competitive dynamics (notably AMD and Intel efforts in data-center accelerators), regulatory/export controls, and potential macro-induced softness in enterprise demand.
Overall, the QQ2 2026 results solidify NVIDIA’s position as a core beneficiary of the AI infrastructure upgrade cycle, with compelling free cash flow generation and a robust balance sheet that provides ballast for ongoing shareholder returns and strategic investment.
Key Performance Indicators
QoQ: 40.26% | YoY:-86.22%
Key Insights
Revenue for QQ2 2026: $46.743 billion, up 33.24% YoY and 6.08% QoQ. Gross profit: $33.853 billion, gross margin 72.42% (YoY gross profit growth 29.43%, QoQ 26.94%). Operating income: $28.44 billion, operating margin 60.84% (YoY +30.05%, QoQ +31.44%). Net income: $26.422 billion, net margin 56.53% (YoY +36.84%, QoQ +40.73%). Earnings per share (Diluted): $1.08, YoY change -86.22%, QoQ +40.26%. EBITDA: $28.44 billion (EBITDA margin 60.84%). Interest expense: $62.0 million; Depreciation and amortiz...
Financial Highlights
Revenue for QQ2 2026: $46.743 billion, up 33.24% YoY and 6.08% QoQ. Gross profit: $33.853 billion, gross margin 72.42% (YoY gross profit growth 29.43%, QoQ 26.94%). Operating income: $28.44 billion, operating margin 60.84% (YoY +30.05%, QoQ +31.44%). Net income: $26.422 billion, net margin 56.53% (YoY +36.84%, QoQ +40.73%). Earnings per share (Diluted): $1.08, YoY change -86.22%, QoQ +40.26%. EBITDA: $28.44 billion (EBITDA margin 60.84%). Interest expense: $62.0 million; Depreciation and amortization: $1.549 billion.
Cash flow and liquidity: Operating cash flow $15.365 billion; Free cash flow $13.47 billion; Capital expenditures $1.895 billion; Net change in cash per period: -$3.595 billion; Cash and cash equivalents at period end: $11.639 billion; Net cash from financing activities: -$11.833 billion (driven by $9.72 billion in share repurchases and dividends/payments). Balance sheet highlights: Total assets $140.74 billion; Total current assets $102.22 billion; Total liabilities $40.61 billion; Total stockholders’ equity $100.131 billion; Net debt position approx. break-even to modest net cash (-$1.041 billion).
Strategic and operational takeaways: The quarter underscores NVIDIA’s continued dominance in AI data-center GPUs and software ecosystems, reinforced by a high-margin revenue mix and robust cash conversion from operations to shareholder value. The balance sheet provides substantial liquidity to fund ongoing programmatic buybacks and potential strategic initiatives, while the strong cash generation supports resilience against near-term macro uncertainty.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
46.74B |
33.24% |
6.08% |
| Gross Profit |
33.85B |
29.43% |
26.94% |
| Operating Income |
28.44B |
30.05% |
31.44% |
| Net Income |
26.42B |
36.84% |
40.73% |
| EPS |
1.08 |
-86.22% |
40.26% |
Management Commentary
Notes adapted from the QQ2 2026 earnings call would typically emphasize: (1) Sustained AI data center and hyperscaler capex driving demand for NVIDIA’s most advanced GPUs and software platforms; (2) Positive pricing power and favorable product mix contributing to sustaining high gross margins; (3) Ongoing investments in software and enterprise AI offerings to expand the addressable market beyond hardware sales; (4) Confidence in supply chain normalization and capacity to support growth, with potential headwinds from geopolitical/regulatory considerations affecting international shipments. Given the data provided, explicit management quotes were not included in the input; a direct extraction from the actual transcript would allow precise quotes and attribution.
Transcript not provided in the input data.
— NVIDIA Management
Transcript not provided in the input data.
— NVIDIA Management
Forward Guidance
Management commentary suggests continued strength in AI infrastructure investments, with hyperscale data centers expanding capacity to meet demand for generative AI workloads. While no explicit numeric guidance is provided in the data, the implied trajectory points to sustained high utilization of NVIDIA’s data-center GPUs, software stack adoption (CUDA and NVIDIA AI Enterprise), and ecosystem partnerships. Investors should monitor: (1) the trajectory of data center capex by hyperscalers and enterprises; (2) potential tempo changes in AI training vs. inference workloads; (3) regulatory/export controls affecting AI hardware shipments (notably to restricted regions); (4) product cadence and supply chain dynamics that could influence gross margins. Overall, the outlook remains favorable for continued strong cash generation, albeit with valuation and macro risk considerations.