NVIDIA posted another record quarter, lifted by demand for AI infrastructure and the first meaningful ramp of its Blackwell platform. For the three months ended July 27, 2025, revenue rose to $46.7 billion (+6% q/q, +56% y/y). Data Center sales hit $41.1 billion (+5% q/q, +56% y/y). Blackwell Data Center revenue grew 17% sequentially.
Margins stayed elevated. GAAP and non-GAAP gross margins were 72.4% and 72.7%, respectively. GAAP EPS came in at $1.08; non-GAAP EPS was $1.05. Excluding a $180 million release of previously reserved H20 inventory (and related tax), non-GAAP EPS would have been $1.04.
Management again flagged China as a swing factor. There were no H20 sales to China-based customers in Q2. NVIDIA recognized a $180 million benefit from the inventory release and booked ~$650 million of unrestricted H20 sales to a customer outside China. The company says its Q3 outlook assumes no H20 shipments to China.
Capital returns accelerated. $24.3 billion was returned to shareholders in 1H FY26 via buybacks and dividends, leaving $14.7 billion under the prior authorization at quarter-end. On August 26, 2025, the board added $60.0 billion to the repurchase authorization (no expiration). NVIDIA also declared the next quarterly cash dividend of $0.01 per share, payable October 2, 2025 to holders of record on September 11, 2025.
Guidance (Q3 FY26): revenue $54.0 billion ±2%; GAAP/non-GAAP gross margin 73.3%/73.5% (±50 bps); GAAP/non-GAAP OpEx $4.2B; OI&E ~$500M income; tax rate ~16.5% ±1%. The outlook does not assume any H20 shipments to China.
Early reaction from market watchers framed the print as a beat with a cautious China stance. Independent recaps noted revenue and EPS topped expectations, while the $54B revenue guide broadly aligned with consensus.
Why it matters
- Blackwell ramp: The 17% sequential lift in Blackwell Data Center revenue supports NVIDIA’s transition to its next-gen platform, which underpins both training and inference at rack scale.
- Margins resilient: Despite supply transitions and inventory adjustments tied to export-controlled products, margins remained in the low-70s.
- Buyback firepower: The $60B top-up (no expiry) gives management capacity to offset dilution and support EPS over time.
Context
For reference, Q1 FY26 revenue was $44.1B with a non-GAAP gross margin of 61.0% after a large H20-related charge; ex-charge, non-GAAP gross margin would have been 71.3%. That reset helped set up the higher margin base seen in Q2.
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