NVIDIA Q2 FY2026 Report: Quarterly Revenue Exceeds Expectations, but Outlook Raises Market Concerns

This morning, Nvidia released its second quarter financial report for the fiscal year 2026, with revenue reaching $46.7 billion, a year-on-year increase of 56%, exceeding the market expectation of $46 billion.

Despite the impressive performance this quarter, the company’s revenue outlook for the third fiscal quarter is only around $54 billion, fluctuating by 2% up or down, slightly higher than the expected $53.46 billion, which has raised concerns among investors about the slowing growth rate of massive spending in the artificial intelligence sector.

The financial report shows that the data center business remains Nvidia's core growth engine, with revenue reaching $41.1 billion this quarter, a year-on-year increase of 56%.

Among them, the sales of the latest generation Blackwell architecture chips increased by 17% quarter-on-quarter, indicating strong market demand.

However, due to export restrictions, Nvidia is unable to sell the H20 chip to China, resulting in a $4 billion decrease in quarterly revenue, which brings significant uncertainty to future growth.

The management stated that under conditions permitted by policy, the data center business is expected to contribute between $2 billion and $5 billion in revenue in the third quarter. This situation highlights the impact of policy factors on technology companies.

Despite facing short-term challenges, Nvidia's management emphasized that "the AI race has begun" and stated that the Blackwell platform will become the company's core competitive product in the AI field.

In addition, NVIDIA's Blackwell chips are facing production yield issues. Although the company is working to improve the manufacturing process, the market is skeptical about whether it can achieve its "billion-dollar" revenue target in the fourth quarter, which also brings uncertainty to its short-term growth prospects.

However, it is reassuring that Nvidia's board has approved a new $60 billion stock buyback plan. Combined with the $24.3 billion returned to shareholders through buybacks and dividends in the first half of the year, this indicates a significant enhancement in the company's commitment to returning value to shareholders.

After the release of its financial report, the three major U.S. stock indexes all rose slightly. By the close, the Dow Jones Industrial Average was up 0.32%, the Nasdaq rose 0.21%, and the S&P 500 index increased by 0.24%. According to Coingecko data, BTC rose slightly by 0.2% in the past 24 hours, while ETH declined by 1.1% during the same period.

In summary, NVIDIA's fiscal year report demonstrates its growth momentum in the AI sector, but also reveals the market's stringent scrutiny of the potential risks it may face in future quarters.

(2026 fiscal year Q2 financial report