NVIDIA FY26 Q2 earnings report

01 Business performance and growth drivers

Data Center revenue was 41.10 B$, up 56% year over year. Data Center is a market-platform disclosure spanning GPUs, networking and other products.

Versus the preceding quarter, consolidated revenue changed by +2.681 B$ and operating profit by +6.802 B$; operating margin changed by +11.7 percentage points. Segment commentary explains the consolidated result. Sequential changes without controlling for acquisitions, seasonality and product transitions are not long-term growth rates.

02 Profit quality and margins

The release reports GAAP gross margin of 72.4% and non-GAAP margin of 72.7%. GAAP margin changed by +11.9 percentage points sequentially and -2.7 points year over year. Assess product mix, inventory and transition costs separately from sales scale.

GAAP/non-GAAP margins were 72.4%/72.7%; excluding a 0.180 B$ H20 release, non-GAAP margin was 72.3%.

On consolidated revenue of 46.743 B$, operating margin was 60.8% and net margin 56.5%. Net profit differed from operating profit by -2.018 B$, reflecting non-operating items, taxes and related effects. This difference cannot by itself be attributed to product demand or operating competitiveness.

03 Cash flow and financial capacity

Quarterly operating cash flow of 15.365 B$ less capital expenditure of 1.894 B$ gives common-basis FCF of 13.471 B$. Ending cash and cash equivalents were 11.639 B$, versus total liabilities of 40.609 B$. Liabilities are not equivalent to borrowings; cash excludes separately reported short-term investments.

Common-basis FCF was 28.8% of revenue. Both operating cash flow and capital expenditure refer to this quarter, not annual or trailing-twelve-month periods. Working-capital movements and non-cash adjustments mean operating cash flow need not equal net profit.

The company directly reported quarterly OCF of 15.365 B$, property, equipment and intangible-asset purchases of 1.894 B$, and related principal payments of 0.021 B$. Company-reported FCF of 13.450 B$ is distinguished from common-basis FCF of 13.471 B$, which excludes the principal deduction. Direct quarterly disclosures take precedence over rounding residuals from cumulative subtraction.

04 Management commentary and contemporaneous guidance

Management demand commentary is based on the official release. Platform revenue is part of consolidated results, not incremental revenue to add to the totals.

Next-quarter revenue guidance was 54.00 B$±2%; GAAP/non-GAAP gross-margin guidance was 73.3%/73.5%, each ±0.5 percentage points. These are contemporaneous forecasts, not subsequent actual results.

05 Risks and next checks

The outlook assumed no China H20 shipments; separate reserve releases, underlying Blackwell profitability and export-license changes.

Quarterly results · CY-aligned view

CY denotes the calendar quarter with the greatest overlap with the fiscal period. If the first period has no start date, 89 days before its end is used only for calendar mapping. Financial values are not recalculated into calendar quarters. Incomplete years show totals of included quarters; cash, liabilities, borrowings and net cash use the last period-end balance. QoQ and YoY show absolute changes; margin changes are percentage points. Dashes indicate missing evidence or incomparable periods or definitions. Total liabilities never substitute for borrowings.

Definitions and evidence coverage

A dash means unavailable or undisclosed, not zero. Company-defined FCF may differ from total operating cash flow less common-basis CapEx. Total liabilities are accounting liabilities, not interest-bearing debt.

Management commentary summarizes the contemporaneous official earnings release; this report does not represent a full conference-call Q&A review.