NVIDIA reported a standout QQ2 2026 quarter, underscoring the persistence of AI-driven demand for its data center GPUs. Revenue reached USD 46.743 billion, up approximately 33% year over year and 6% quarter over quarter, with gross margins of ~72.4% and net income of USD 26.42 billion. Earnings per share stood at USD 1.08, up roughly 38% year over year and 40% quarter over quarter. Free cash flow totaled USD 13.47 billion, and NVIDIA ended the period with a substantial net cash position, supported by USD 56.8 billion of cash and short-term investments and USD 9.72 billion in net share repurchases during the period.
The results reflect a sustained AI compute cycle driven by hyperscalers and enterprise customers investing in training and inference workloads. The company benefits from a favorable product mix (high-margin data center GPUs and related software) and a capital-light operating model that converts a large portion of revenue into operating cash flow. Management commentary around continued data center growth, product ramp of next-generation accelerators, and software-enabled AI offerings suggests durable profitability and a strong runway for value creation, though the outturn remains exposed to the pace of AI adoption, competitor dynamics, and potential regulatory considerations around export controls and supply chains.
Overall, NVIDIA’s QQ2 2026 performance reinforces its leadership in AI infrastructure, supports a positive long‑term growth thesis, and provides a robust base for future capital allocation (buybacks, dividends, and selective strategic investments). Investors should monitor the cadence of hyperscale capex, product cycles, and the evolving competitive landscape as drivers of sustained profitability and multiple expansion.