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Nvidia (NVDA) · Q2 2026 results and valuation
Share price: $173.73 · 2026-11-11
NVIDIA provides data center infrastructure, graphics processing units, and software for artificial intelligence, high-performance computing, and 3D graphics. The company serves cloud service providers, enterprises, and individual consumers in markets including healthcare, automotive, and gaming. It operates globally by providing hardware and software platforms for large-scale data processing and accelerated computing. Source: 10-K annual report (2026-02-25)
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q2 2027 · published 26 Aug 2026 and 20 May 2026
Net income up 2.3% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
+2.3%
Net income vs Q1 2026
Outlook given
Net income 59.69B vs 58.32B
Revenue +17.9%
Why Against the same quarter last year (+125.9%), net income rose primarily because total revenue more than doubled year-over-year, driven by demand from hyperscalers, sovereign AI, and enterprises, alongside a non-GAAP effective tax rate increase due to higher revenue.
2 · How management spoke
Typical
More upbeat than 58% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Nvidia partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to establish financing platforms intended to raise over $500 billion of third-party capital.
Valuation
Is Nvidia undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-01-25), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 20.0% growth a year (3-year revenue growth), the model's fair value is $199.19 a share — the stock trades 13% below it. Today's price assumes 18.1% growth a year.
Current price
$173.73
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+18.1% for 10 yrs
Fair value / share
$199.19
Buy below
$149.39
Price vs fair value
Undervalued 13%
Price vs buy-below price
Overvalued 16%
Management expects
Revenue +70% · from the Q2 2026 report: “The company expects fiscal year '28 revenue to grow approximately 70% year-over-year, though supply is expected to remain a bottleneck through the end of…”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
The company expects fiscal year '28 revenue to grow approximately 70% year-over-year, though supply is expected to remain a bottleneck through the end of fiscal year '28.
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Figure
Total revenue reached $96 billion and more than doubled year-over-year as growth accelerated for the fourth consecutive quarter.
Source quote
“Total revenue of $96 billion more than doubled year-over-year as growth accelerated for the fourth consecutive quarter.”
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Key theme
Capital expenditure by the top 5 hyperscalers is expected to reach nearly $800 billion in 2026 and $1.3 trillion in 2027 due to a cloud industry backlog greater than $2 trillion.
Source quote
“With cloud industry backlog now greater than $2 trillion, CapEx by the top 5 hyperscalers is expected to reach nearly $800 billion in 2026 and $1.3 trillion in 2027.”
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Figure
Revenue opportunity per gigawatt increased from $18 billion with Hopper to $25 billion with Blackwell and $40 billion with Vera Rubin, expanding the scope of products and technologies available.
Source quote
“Since Hopper, our revenue opportunity has grown from roughly $18 billion per gigawatt to $25 billion with Blackwell, to $40 billion with Vera Rubin, which now spans Vera CPU, Rubin GPU, NVLink, InfiniBand or Ethernet and Groq LPU announced earlier this week.”
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Guidance
Margins are expected to bottom in Q4 in the 71% to 72% range before settling at 72% to 73% in fiscal year '28 as price increases take effect in Q1.
4 more
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Key theme
The AICE segment, encompassing sovereign, regional NeoClouds, enterprise edge, and air-gap data centers, will represent roughly half of the data center business while hyperscalers remain a major growth driver.
Source quote
“Hyperscalers will remain a major growth driver, but non-hyperscaler growth, our AICE segment, spanning sovereign, regional NeoClouds, enterprise edge and air-gap data centers will represent roughly half of our data center business.”
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Figure
Sovereign AI business through regional NeoClouds grew 35% sequentially and more than tripled year-over-year in Q2.
Source quote
“In sovereign AI, our business primarily through the regional NeoClouds, grew 35% sequentially and more than tripled year-over-year in Q2.”
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Figure
NVDA returned a record $26 billion to shareholders in Q2, consisting of $20 billion through share repurchases and $6 billion through a $0.25 per share quarterly dividend.
Source quote
“In Q2, we returned a record $26 billion to shareholders, $20 billion through share repurchases and $6 billion through our quarterly dividend of $0.25 per share.”
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Figure
You can see that those commitments, the biggest parts of them are in the first 3 years, and Nvidia will use that to build the products that it need.
Source quote
“You can see that those commitments, the biggest parts of them are in the first 3 years, and we will use that to build the products that we need. This also gives us the confidence in terms of our growth in revenue, given how much we have already aligned and commitment in terms of our supply as well.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Hyperscale revenue of $49 billion grew 13% sequentially, driven by sustained strength in Blackwell, reinforcing that more compute drives more revenue as new GPU capacity comes online, our hyperscale customers...”
“The surge in AI demand is driving a global infrastructure buildout, supported by an expanding and diverse set of growth opportunities, spanning hyperscalers, AI labs, AI natives, enterprises and sovereign...”
“And based on our customer demand and improving supply outlook, our preliminary expectation is for CPU revenue to more than double in fiscal '28, positioning us as one of the...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-26)
| Metric | Q2 2026period end 2026-07-26 | Q1 2026period end 2026-04-26 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 96.22B | 81.61B | +17.9% | 46.74B | +105.9% |
| Gross profit | 72.14B | 61.16B | +18.0% | 33.85B | +113.1% |
| Operating income | 63.73B | 53.54B | +19.0% | 28.44B | +124.1% |
| Net income | 59.69B | 58.32B | +2.3% | 26.42B | +125.9% |
| EPS | 2.46 | 2.39 | +2.9% | 1.08 | +127.8% |
| P/E today 23.6 | 26.1 | 31.9 | −5.8 | 49.4 | −23.3 |
Topics
Most discussed now
- This is essential for the raising of Vera Rubin today as well as all next year.
Faded since Q1 2026
- Dropped Nvidia returned a record $20 billion to its shareholders while executing strategic investments, both upstream supply chain and downstream…
- Fading Nvidia capitalized on the inflection and inference demand by ramping Blackwell systems across its diverse end customer base.
- Fading Nvidia has got almost all of its major customers ready to go.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Other events · SEC 8-K
NVIDIA entered into a definitive agreement to acquire Hugging Face for a purchase price of approximately $11.9 billion plus an equity-based retention program of up to $1.0 billion for employees.
- Results of operations · SEC 8-K
NVIDIA Corporation issued a press release on August 26, 2026, reporting financial results for the quarter ended July 26, 2026.
- Material agreement; New financial obligation; Regulation FD disclosure · SEC 8-K
NVIDIA entered into a multi-year agreement with SB Energy for a data center campus with a cumulative payment obligation capped at $105 billion for approximately 4.25 gigawatts of IT load.
- Director or officer change · SEC 8-K
- Shareholder vote results · SEC 8-K · routine
- Other events · SEC 8-K
- Results of operations · SEC 8-K
NVIDIA Corporation issued a press release on May 20, 2026, reporting financial results for the quarter ended April 26, 2026.
- Director or officer change · SEC 8-K
NVIDIA Corporation appointed Suzanne Nora Johnson to the Board and Audit Committee effective July 13, 2026, with an initial equity grant target value of $255,000 and an annual cash retainer of $85,000.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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fiscal 2028
revenue growth
Source quote
“We expect to grow revenue by approximately 70% in fiscal 2028.”
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2026
CapEx by the top 5 hyperscalers
Source quote
“CapEx by the top 5 hyperscalers is expected to reach nearly $800 billion in 2026 and $1.3 trillion in 2027.”
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starting this quarter through the second quarter of fiscal '29
AWS deployment of additional 2 million GPUs
Source quote
“AWS is deploying an additional 2 million GPUs starting this quarter through the second quarter of fiscal '29 along with Vera, CPUs, some integrated with Rubin, other standalone.”
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next year
growth doubling
Source quote
“Customers forecasts point to our growth, doubling next year.”
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fiscal '28
CPU revenue more than double
Source quote
“And based on our customer demand and improving supply outlook, our preliminary expectation is for CPU revenue to more than double in fiscal '28, positioning us as one of the world's leading server CPU suppliers.”