Nvidia released its financial results for the second quarter of fiscal 2026, showing significant revenue growth; however, the company’s stock declined amid investor dissatisfaction.
Overview of Financial Results
Nvidia's revenue for Q2 was $46.7 billion, representing a 6% increase from Q1 and a 56% increase compared to the same quarter last year. The figures were published in an earnings report on Tuesday.
Expectations vs Reality
While Blackwell Data Center revenue increased by 17% quarter-over-quarter, this was insufficient to meet analyst expectations. Nvidia reported no sales of its H20 AI chips to Chinese customers and relied on sales to other buyers totaling around $650 million.
Future Outlook and Plans
Nvidia is forecasting Q3 revenue of $54 billion. The company also announced a new dividend of $0.01 per share. However, high operating expenses projected at $5.9 billion GAAP may have influenced market reactions.
Despite significant revenue growth and strong sales, investor expectations for Nvidia were higher, resulting in a decline in the company's stock.
