Nvidia has announced its financial results for Q2 2026, showcasing revenue and profit growth that has captured analysts' and investors' attention.
Financial Performance for Q2
Nvidia reported Q2 revenues of $46.7 billion, a 6% increase from the previous quarter and a 56% rise over the same period last year. The company's net income was over $26.4 billion. The earnings per share (EPS) came in at $1.08 under GAAP and $1.05 for non-GAAP. Profit margins for the quarter were around 72.4%. However, Nvidia shares fell by about 3.3% in after-hours trading.
Sales Issues in China
Nvidia also addressed concerns regarding its China business, stating that there were no H20 processor sales to Chinese customers in Q2. The H20 processor is a weaker version of the H100 chip, designed in compliance with existing US export regulations.
Changes in Export Restrictions
In January, the Trump administration announced it was seeking to tighten export controls on H20 sales to China due to national security concerns. Following that, strict export licenses were implemented, effectively halting chip exports. However, in August, the administration reversed its position, allowing H20 chip sales to China to resume on the condition that Nvidia pays 15% of revenue from these sales to the US government.
Nvidia's Q2 2026 financial results highlight the company's robust growth amid global changes and regulatory challenges. The export situation regarding China presents additional hurdles, yet opportunities for continued success remain.
