NVDA 2026 Q2

Total revenue reached $46.7 billion, exceeding the company's outlook, with sequential growth across all market platforms despite a $4 billion sequential decline in H20 revenue.

“Total revenue was $46.7 billion, exceeding our outlook as we grew sequentially across all market platforms.”— Colette Kress, CFO

Q3 revenue guidance of $54 billion (+/-2%) implies over $7 billion of sequential growth, accelerating from the prior quarter's pace, even while excluding any H20 China shipments.

“Total revenue is expected to be $54 billion plus or minus 2%. This represents over $7 billion in sequential growth.”— Colette Kress, CFO

Hopper H100/H200 shipments increased sequentially in the quarter, a notable uptick that management said reflects broadening demand across AI workloads rather than the expected wind-down as Blackwell ramps.

“Notably in the quarter was an increase in Hopper 100 and H200 shipments.”— Colette Kress, CFO

GB300 production hit a snag from factory conversions in late July/early August but has since returned to full speed at ~1,000 racks/week, with output expected to accelerate further in Q3 as capacity comes online.

“The current run rate is back at full speed, producing approximately 1,000 racks per week.”— Colette Kress, CFO

Jensen described extraordinarily tight current supply-demand conditions, with Hopper and H200 GPUs sold out and large CSPs renting capacity from other CSPs to meet demand, a more acute shortage than prior quarters.

“H1 hers sold out. H2 hundreds are sold out. Large CSPs are coming out renting capacity from other CSPs.”— Jensen Huang, CEO

China data center revenue declined sequentially to low single digits of total data center revenue, and the Q3 outlook excludes any H20 shipments to China customers pending resolution of licensing and geopolitical issues.

“China declined on a sequential basis to low single digits percentage of data center revenue.”— Colette Kress, CFO

Jensen sized the addressable China AI opportunity at over $50 billion this year with potential ~50% annual growth if NVIDIA can compete there, and said bringing Blackwell to China is now a real possibility given recent H20 license approvals.

“The China market, I have estimated to be above $50 billion of opportunity for us this year.”— Jensen Huang, CEO

Sovereign AI revenue is now on track to exceed $20 billion this year, more than double last year's level, reflecting accelerating government-led AI infrastructure build-outs globally.

“We are on track to achieve over $20 billion in Sovereign AI revenue this year, more than double that of last year.”— Colette Kress, CFO

Blackwell platform revenue reached record levels, growing sequentially by 17%, with GB300 production shipments beginning in Q2, marking a new high point versus prior quarters' ramp.

“NVIDIA Corporation's Blackwell platform reached record levels, growing sequentially by 17%.”— Colette Kress, CFO

RTX Pro servers, newly in full production, are being adopted by major enterprises across industries and are now positioned by management to become a multibillion-dollar product line, a step up from prior framing as an emerging offering.

“As enterprises modernize data centers, RTX Pro servers are poised to become a multibillion-dollar product line.”— Colette Kress, CFO

The Rubin platform's six chips have all taped out at TSMC and are now in fab, keeping the next-generation product on schedule for volume production next year on NVIDIA's annual cadence.

“Rubin remains on schedule for volume production next year.”— Colette Kress, CFO

Non-GAAP gross margin of 72.7% (72.3% excluding a one-time H20 inventory reserve release) exceeded the company's prior outlook.

“Excluding this benefit, non-GAAP gross margins would have been 72.3%, still exceeding our outlook.”— Colette Kress, CFO

Q3 gross margin guidance was raised to 73.3% GAAP/73.5% non-GAAP, with management now expecting to exit the fiscal year with non-GAAP gross margins in the mid-seventies, an improving trajectory.

“We continue to expect to exit the year with non-GAAP gross margins in the mid-seventies.”— Colette Kress, CFO

Full-year operating expense growth guidance was raised to the high-thirties percent range year over year, up from the prior mid-thirties expectation, as management accelerates investment to capture growth opportunities.

“For the full year, we expect operating expenses to grow in the high thirties range year over year, up from our prior expectations of the mid-thirties.”— Colette Kress, CFO

US government began reviewing and granting H20 export licenses to select China customers, a new development after prior restrictions, though a proposed 15% revenue-share requirement remains uncodified and no shipments have yet occurred under these licenses.

“In late July, the US government began reviewing licenses for sales of H20 to China customers.”— Colette Kress, CFO

Management is now actively advocating for US approval of Blackwell sales to China, a shift toward pursuing a previously unavailable market as licensing dynamics evolve.

“We continue to advocate for the US government to approve Blackwell for China.”— Colette Kress, CFO

The board approved a new $60 billion share repurchase authorization, added to the remaining $14.7 billion from the prior authorization, after returning $10 billion to shareholders via buybacks and dividends in Q2.

“Our board of directors recently approved a $60 billion share repurchase authorization to add to our remaining $14.7 billion of authorization.”— Colette Kress, CFO

Management raised its long-term AI infrastructure spending estimate to $3-4 trillion by the end of the decade, an increase from prior smaller compute-specific estimates referenced by an analyst, reflecting a larger total addressable market view.

“We see $3 to $4 trillion in AI infrastructure spend by the end of the decade.”— Colette Kress, CFO

Capital expenditure by the top four hyperscalers has doubled in two years to roughly $600 billion annually, and management expects this pace of AI infrastructure investment growth to continue.

“the CapEx of just the top four hyperscalers has doubled in two years... the CapEx spend has doubled to $600 billion per year.”— Jensen Huang, CEO

AI-native startup funding jumped from $100 billion last year to $180 billion this year, and top AI-native startups' revenue grew from $2 billion to $20 billion, with next year potentially 10x higher, signaling accelerating AI market momentum.

“last year was $2 billion. This year is $20 billion. Next year, being 10 times higher than this year is not inconceivable.”— Jensen Huang, CEO