Chipmaker Nvidia announced its financial outcomes for the second quarter of fiscal year 2026, surpassing Wall Street’s projections for revenue and earnings per share (EPS).
Nvidia reported Q2 revenue of $46.7 billion, representing a 6% increase from the prior quarter, with net income exceeding $26.4 billion. Revenue increased by 56% compared to the previous year, as stated in Wednesday’s announcement.
The company reported an EPS of $1.08 using GAAP accounting and $1.05 for non-GAAP. Nvidia also achieved a profit margin of approximately 72.4% for the quarter.
Nvidia shares dipped about 3.3% in after-hours trading on Wednesday.
Nvidia’s stock price experiences a slight decline in after-hours trading. Source: TradingView
Nvidia holds the title of the largest publicly traded company worldwide, boasting a market cap exceeding $4.4 trillion at present. The company is at the forefront of manufacturing artificial intelligence and computing chips and has gained significant geo-strategic relevance for the US government.
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Nvidia records zero H20 sales to China
Nvidia addressed apprehensions regarding its China operations in its most recent earnings report, indicating that sales of its H20 processor did not materialize in the country. “There were no H20 sales to China-based customers in the second quarter,” the company stated.
The H20 processor is a scaled-down version of Nvidia’s H100 chip, developed for the Chinese market in adherence to current US regulations governing the export of high-performance computer chips utilized in AI applications.
In January, the administration of US President Donald Trump announced a push to reinforce export restrictions on Nvidia H20 sales to China, citing concerns related to “national security.”
The Trump administration implemented stringent export controls, which encompassed export licenses and fees estimated at about $5.5 billion, effectively halting H20 chip sales to China.
However, the administration reversed its position in August, allowing H20 chip sales to resume to China contingent upon Nvidia remitting 15% of the revenue from the chips sold there to the US government.
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