NVIDIA Reports Strong Q2 Results and Raises Guidance Despite Share Price Decline
On August 27, 2026, NVIDIA Corporation (NASDAQ:NVDA) reported fiscal second-quarter revenue of $96.2 billion, significantly exceeding the $92.2 billion Wall Street expected. The company's data center segment saw a 117% year-over-year increase to $89 billion and adjusted earnings per share came in at $2.22 versus an estimate of $2.10. NVIDIA also raised its third-quarter revenue guidance above analyst expectations, projecting $108 billion compared to the anticipated $104.2 billion. Despite these strong results, shares fell 1.8% after hours and closed down 1.6% during regular trading due to concerns over margin compression. The company guided gross margins to decline from 75% in Q2 to between 71-72% by fiscal Q4, citing rising memory costs driven largely by AI demand itself. NVIDIA's CEO Jensen Huang emphasized the inflection point of AI and highlighted broadening customer demand across multiple labs. The company also announced significant capital returns through buybacks and dividends totaling $26 billion in the quarter.
Tickers: $NVDA
Topics: AI data_center_growth stock_performance