NVIDIA (NVDA) Beats Revenue Estimates, Strong Outlook

Headline Results

• Revenue: $46.7B (beat est. $46.13B), up +6% QoQ and +56% YoY
• EPS: $1.05 non-GAAP (beat est. $1.01); $1.08 GAAP
• Gross Margin: 72.4% GAAP / 72.7% non-GAAP
• Net Income: $26.4B (+41% QoQ, +59% YoY)
• Free Cash Flow: $13.4B

Business Drivers

• Data Center revenue hit $41.1B, up +5% QoQ and +56% YoY.
• Blackwell architecture was a standout, delivering +17% sequential growth.
• No China H20 sales this quarter, though NVIDIA booked a $180M release of reserved inventory.
• Growth continues to be fueled by hyperscaler and enterprise AI demand.

Guidance (Q3 FY26)

• Revenue: $54.0B ±2% (vs Street $52.76B)
• Gross Margin: ~73.3% GAAP / 73.5% non-GAAP
• Opex: ~$5.9B GAAP / ~$4.2B non-GAAP
• Assumes no H20 shipments to China, underscoring reliance on other regions.

Risks & Disclosures

• U.S. export restrictions remain a major drag on China sales.
• Heavy reliance on TSMC and supply chain adds operational risk.
• Inventory fluctuations could pressure future cash flow.

Stock Reaction
Shares initially moved higher after hours, with investors focusing on the revenue beat and stronger-than-expected guidance.

Context
Compared to peers like AMD and Intel, NVIDIA continues to dominate AI server demand. The +56% YoY revenue growth stands out versus more modest growth rates in semis broadly. Investors will watch closely if margins hold as Blackwell ramps and if China restrictions deepen.