Nvidia's financial report for the second quarter of fiscal 2026 proved triumphant, but the market initially tried to play against the company. Contrary to pessimistic scenarios, NVDA shares not only recovered from the drop but also demonstrated confident growth in after-hours trading, reversing the trend upward.
Key metrics exceeded even the boldest forecasts. Quarterly revenue reached $96.2 billion, $4 billion above the analyst consensus estimate of $92.2 billion. Adjusted earnings per share came in at $2.22 versus the expected $2.10. Sales more than doubled compared to the same period last year — impressive momentum for a company of this scale.
Data centers remain the growth engine
The heart of Nvidia's business — the Data Center segment — brought in $89 billion in revenue, showing 117% year-over-year growth. This is significantly above the forecast of $85.8 billion. Particularly telling is that sales to hyperscalers (the largest cloud providers) reached $48.71 billion, while the market expected only $43.55 billion. This dispels concerns about demand concentration among a narrow circle of clients and reduces the risks of an "AI bubble."
Profitability remains at an outstanding level: adjusted gross margin held at 75%, and net profit surged 118% to $54 billion. Free cash flow amounted to $21.3 billion, giving the company a huge resource for further investments and buybacks.
Q3 guidance: above informal expectations
The main surprise for traders is the guidance for the current quarter. Nvidia expects revenue of $108 billion (plus or minus 2%), notably above the consensus of $104.2 billion and even exceeding informal "rumors" in the market of $107–110 billion. Notably, this guidance does not include shipments of computing solutions for data centers to China, leaving room for additional upside.
The volume of mandatory purchases more than doubled — from $119 billion to $279 billion, primarily driven by memory contracts. This signals strong management confidence in future demand. The company also confirmed that the new Vera Rubin platform — the successor to the Blackwell architecture — is moving into full-scale production, with server racks already operating at partners' sites.
"AI has reached the tipping point. It is already delivering value. AI tokens are generating profit. Now computing is producing revenue," — this is how CEO Jensen Huang described demand in the earnings statement.
Has the "curse" of earnings reports been lifted?
The first minutes after the release resembled the scenario of recent months: shares briefly dipped to $205, fitting the pattern of declines following the previous four reports. However, a reversal then occurred: quotes surged 4.51% to $219.12 by the start of the press conference. Investors apparently realized that the fundamental metrics are too strong to ignore.
An additional supporting factor was generous shareholder payouts: during the quarter, Nvidia returned about $26 billion and may buy back approximately another $99 billion worth of shares. This creates a powerful "floor" for quotes during any correction.
My analysis: The situation around Nvidia is a classic example of how the market tries to "buy the rumor, sell the news" but encounters a reality stronger than any expectations. The growth in purchase commitments to $279 billion is not just a number — it is an indicator that the industry's largest players are voting with their wallets for the future of AI infrastructure. The question now is not whether demand will exist, but whether Nvidia can maintain its margin amid the transition to new platforms. So far, the company is handling it brilliantly, and this makes the current correction nothing more than noise in a long-term uptrend.