Nvidia Reports Strong Q2 Financials but Raises Concern with Rising Receivables
Nvidia reported a stellar fiscal second quarter in September 2026, posting $96.2 billion in revenue—a 106% increase year-over-year—and achieving a gross margin of 75%. The company also projected roughly 70% revenue growth for the next fiscal year and guided to $108 billion in current-quarter revenue, representing sequential growth of 17%. Despite these impressive figures, concerns emerged from Nvidia’s balance sheet. Total assets surged by over 50% in six months, largely due to a significant rise in accounts receivables—from $38.5 billion to $63.1 billion—indicating that customers are taking longer to pay (DSO increased from 45 to 60 days). Nvidia has extended payment terms for large orders and guaranteed up to $105 billion of data center lease obligations for OpenAI, while also forming partnerships to raise over $500 billion in external capital. These actions suggest the company is financing customer purchases more actively than before. Analysts are watching closely whether these trends signal genuine demand or inflated revenue figures due to extended credit terms and financial support. The rise in DSO and receivables could be a red flag if they continue growing faster than revenue, potentially signaling an underlying slowdown in spending rather than robust AI infrastructure growth.
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