Nvidia posts $59.7 billion Q2 profit on $96.2 billion revenue as AI chip demand rises

Second-quarter financial results

Nvidia reported revenue of $96.221 billion (€82.467 billion) for its second fiscal quarter covering May to July, which ended on 26 July 2026. The revenue total represents a 106% increase compared to the same period in the prior fiscal year and an 18% sequential increase over the first fiscal quarter. Net profit for the three-month period reached $59.688 billion (€51.156 billion), rising 126% from $26.422 billion recorded in the prior-year quarter. Adjusted earnings per share arrived at $2.22, surpassing the $2.09 consensus estimate compiled by FactSet analysts. Across the first six months of the fiscal year, Nvidia generated $177.837 billion in total revenue, up 95.8% year-over-year, alongside a net profit of $118.110 billion, reflecting a 161.3% gain.

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Data center segment and market footprint

The data center division served as the primary driver of the quarter, generating more than $89 billion of the $96.221 billion total revenue. According to estimates by Japanese bank Mizuho, Nvidia retains market share exceeding 75% for chips deployed in training and executing artificial intelligence models within data centers. Analysts at Mizuho project that the company's Blackwell and Rubin processor lines could jointly produce more than $1 trillion in sales between 2025 and 2027. In addition to hardware production, Nvidia has expanded into financing new data center facilities, connecting its capital allocations directly to customer adoption of its architecture. Chief executive Jensen Huang stated that computing demand continues to expand across frontier laboratories, artificial intelligence startups, open-model ecosystems, and physical AI systems operating globally.

Third-quarter forecasts and margin constraints

For the third fiscal quarter, Nvidia expects revenue to reach $108 billion (€92.563 billion), allowing for a 2% margin of variation that establishes a guided range between $105.840 billion and $110.160 billion. Operating expenses for the upcoming period are projected at approximately $9.2 billion (€7.885 billion). The company guided for a gross margin of 74%, plus or minus 50 basis points, setting an upper boundary of 74.5%. This forecast falls below the 75% gross margin recorded during the second quarter as well as prevailing analyst projections. Growing infrastructure demand has also increased input costs for high-bandwidth memory modules integrated into advanced processor packages.

Market reaction and institutional outlook

Following the publication of the quarterly report, Nvidia shares declined by more than 1.5% in extended after-hours trading. The retreat represents the fifth consecutive quarter in which the company's equity traded downward following an earnings release, largely driven by investor focus on compressed gross margins and rising component costs. Market participants have also increased scrutiny regarding when large capital expenditures by technology companies on data centers will yield commercial returns. Despite the after-hours reaction, consensus estimates among financial analysts track an expected share price appreciation of approximately 50% over the next 12 months.