Nvidia Q2 Earnings Highlights: Double Beat, $60B Share Buyback, Huang Says 'AI Race Is On' (CORRECTED)
Nvidia reported Q2 earnings with revenue of $46.74 billion, up 56% year-over-year, surpassing estimates. Adjusted EPS was $1.05, beating the consensus of $1.01. The company announced a $60 billion share buyback and expects Q3 revenue between $52.92 billion and $55.08 billion. CEO Jensen Huang emphasized the significance of their Blackwell AI platform, stating, "The AI race is on." Despite strong results, Nvidia shares fell 3.4% in after-hours trading.
Editor's Note: This article has been updated to correct the price action data.
NVIDIA Corporation NVDA reported second-quarter financial results after market close Wednesday.
Here are the key highlights.
What Happened: Nvidia reported second-quarter revenue of $46.74 billion, up 56% year-over-year. The revenue total beat a Street consensus estimate of $46.02 billion according to data from Benzinga Pro.
The company reported adjusted earnings per share of $1.05 in the quarter, beating a Street consensus estimate of $1.01.
Non-GAAP gross margins in the quarter were 72.7%.
The company had no H20 sales to China-based customers in the second quarter. Nvidia said it benefited from a $180 million release of H20 inventory that was sold to a customer outside of China.
Blackwell Data Center revenue was up 17% quarter-over-quarter.
Here is a look at the revenue performance by operating business segment.
"Blackwell is the AI platform the world has been waiting for, delivering an exceptional generational leap – production of Blackwell Ultra is ramping at full speed, and demand is extraordinary," Nvidia CEO Jensen Huang said.
Huang said Nvidia NVLink rack-scale computing is "revolutionary" and "arriving just in time as reasoning AI models drive orders-of-magnitude increases in training."
"The AI race is on, and Blackwell is the platform at its center."
Nvidia announced a new $60 billion share buyback authorization and said it had $14.7 billion remaining on an existing repurchase agreement.
What's Next: Nvidia is guiding for third quarter revenue to be in a range of $52.92 billion to $55.08 billion, versus a Street consensus estimate of $52.96 billion, according to data from Benzinga Pro.
The guidance does not include any H20 shipments to China.
Nvidia expects non-GAAP gross margins to be 73.5% in the third quarter, plus or minus 50 basis points. The company expects to exit the year with non-GAAP gross margins in the mid-70% range.
NVDA Price Action: NVIDIA shares were down 3.4% at $175.40 in after-hours trading on Wednesday, versus a 52-week trading range of $86.63 to $184.48.
