Nvidia has delivered another record quarter, with revenue more than doubling as spending on artificial-intelligence infrastructure continued to rise across cloud providers, AI laboratories and enterprise customers.
The chipmaker reported revenue of $96.22 billion for its fiscal second quarter ended July 26, 2026. This represented an increase of 106% from $46.74 billion a year earlier and 18% from the preceding quarter.
The result exceeded the $92.17 billion average estimate compiled by LSEG. Nvidia also reported adjusted earnings of $2.22 per share, ahead of the $2.10 expected by analysts.
Shares initially slipped following the announcement but reversed direction during extended trading. The stock rose nearly 5% as investors assessed the company’s results, revenue outlook and long-term growth forecast.
Nvidia expects sales to increase by about 70% in the financial year ending January 2028. The unusually early projection was substantially higher than the 44% growth analysts had anticipated.
Data Centre Revenue Reaches $89 Billion
The Nvidia earnings report was once again led by its data centre business, which supplies the processors, networking equipment and software used to train and operate AI models.
Data centre revenue reached $89 billion, up 117% from the same quarter last year and 18% sequentially. The figure also surpassed analysts’ estimate of approximately $85.08 billion.
Nvidia’s total GAAP net income rose 126% to $59.69 billion. Diluted earnings per share climbed from $1.08 to $2.46, while adjusted net income increased 118% to $53.95 billion.
The company’s latest results indicate that demand is expanding beyond a small group of large technology companies. Nvidia said AI laboratories could account for roughly one-quarter of its overall business next year.
Cloud infrastructure specialists such as CoreWeave and Nebius are also increasing capacity. Nvidia expects these companies, often described as neo-cloud providers, to finish the year with more than eight gigawatts of GPU capacity, compared with three gigawatts at the end of last year.
Chief executive Jensen Huang said AI computing had reached an inflection point as companies began connecting computing expenditure more directly with productivity and revenue.
Vera Rubin Begins Contributing to Sales
Nvidia’s next-generation Vera Rubin platform has entered full production and begun shipping to customers. The company expects it to contribute approximately one-fifth of data centre revenue during the current quarter.
Rubin systems are being deployed by partners including Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure, CoreWeave and Nebius.
The platform combines Nvidia’s processors, networking technology and software for large-scale AI computing. Its adoption will be important as customers move from training models towards running AI agents and other applications that require continuous inference capacity.
Nvidia also announced a major expansion of its relationship with Amazon Web Services. The companies plan to deploy an additional two million Nvidia GPUs across Amazon’s global infrastructure during 2027 and 2028.
The agreement covers infrastructure for agentic and physical AI workloads, widening Nvidia’s exposure to demand from cloud computing, robotics and industrial applications.
For its fiscal third quarter, Nvidia expects revenue of $108 billion, plus or minus 2%. That forecast is above the $104.19 billion average analyst estimate.
The company has not included any data centre computing revenue from China in its guidance because sales in the market remain uncertain.
Supply and Margin Pressure Remain Key Risks
Demand is growing faster than Nvidia’s ability to supply some products. Chief financial officer Colette Kress said customer forecasts indicated a potential doubling of growth next year, but memory and component shortages continued to restrict output.
Higher input costs are also placing pressure on profitability. Nvidia expects both GAAP and adjusted gross margins of around 74% in the current quarter, plus or minus half a percentage point.
Management expects margins to decline further to approximately 71%–72% in the fourth quarter before beginning to recover. The projection reflects higher memory prices and the expense of manufacturing increasingly complex AI systems.
Nvidia reported a 75% gross margin for the second quarter, compared with 72.4% on a GAAP basis one year earlier.
China presents a separate challenge. Export restrictions and changing regulatory approvals have limited deliveries of advanced chips to customers in the country. Although some shipments have resumed, volumes remain low, and Nvidia has excluded the market from its current data centre outlook.
The company is also responding to questions about how AI infrastructure is financed. Nvidia has formed partnerships with major investment firms to mobilise more than $500 billion in third-party capital over time, subject to final agreements.
These arrangements are intended to help customers finance large data centres, but they have also drawn attention to the connections between chip suppliers, AI laboratories and infrastructure investors.
AI Spending Shows No Immediate Slowdown
The results suggest that the global AI infrastructure boom has not yet reached its peak. Large cloud providers are continuing to invest in computing capacity, while newer AI companies, national projects and industrial customers are widening the market.
Nvidia returned approximately $26 billion to shareholders through share repurchases and dividends during the quarter. It had about $99 billion remaining under its repurchase authorisation at the end of July.
The immediate focus will now shift to whether Nvidia can deliver its $108 billion third-quarter revenue target while managing component shortages and lower margins.
Its longer-term forecast will also be closely watched. Achieving 70% growth in fiscal 2028 would require AI spending to remain strong even as the company operates from a considerably larger revenue base.
Nvidia’s second-quarter results provided clear evidence that demand remains high. Revenue doubled, data centre sales reached $89 billion, and the Rubin generation began contributing to the next phase of growth. Supply constraints, China uncertainty and rising costs remain important risks, but the latest outlook indicates that the company expects the AI investment cycle to continue expanding.
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