NVIDIA — 2026Q3 earnings

reported 2026-08-26

EPS $2.22 vs $2.09 est — beat

next session +8.7% (close 2026-08-26 → 2026-08-27)

Source

Summary

The reported quarter is unambiguously strong — record revenue, gross margin at 75.0%, and a guide that steps up again. Two details deserve more weight than the headline. First, the outlook explicitly assumes zero Data Center compute revenue from China, so the guided step-up is being carried entirely by the rest of the world; China is upside held outside the number rather than a risk sitting inside it. Second, supply commitments jumped from $119 billion to $279 billion in a single quarter, concentrated in memory — NVIDIA is pre-buying scarce inputs years ahead, which locks in supply but converts a flexible cost base into a fixed obligation, and is the line most worth watching if demand ever stops compounding. No call analysis is included here: no transcript was available from NVIDIA's own investor site or from a free recognized publisher, so this review is grounded entirely in the filed 8-K exhibits.

Earnings call

Earnings call webcast ↗

Review

From the report

Revenue more than doubled year over year to a record $96.2 billion on Data Center strength, and NVIDIA guided the October quarter above the quarter it just printed while assuming nothing from China. The number that changed most, though, was off the income statement: purchase commitments more than doubled in three months, mostly memory.

Revenue was a record $96.2 billion, up 106% from a year ago and up 18% sequentially — the business more than doubled year over year at a scale where doubling is already unusual. show quote

“NVIDIA (NASDAQ: NVDA) today reported revenue for the second quarter ended July 26, 2026, of $96.2 billion, up 18% from the previous quarter and up 106% from a year ago.”
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Gross margin held at 75.0% on both a GAAP and non-GAAP basis. Notably, GAAP EPS of $2.46 came in above non-GAAP EPS of $2.22 — the reverse of the usual order, since GAAP here is being helped by items non-GAAP excludes rather than burdened by them. show quote

“For the quarter, GAAP and non-GAAP gross margins were both 75.0%. GAAP and non-GAAP earnings per diluted share were $2.46 and $2.22, respectively.”
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Demand broadened beyond the hyperscalers: the AI Clouds, Industrial & Enterprise segment grew 138% year over year and 25% sequentially, outpacing the overall company and drawing on AI natives, enterprises and sovereign buyers. show quote

“ACIE revenue increased 138% from a year ago and 25% sequentially driven by end-demand from AI natives, enterprises, and sovereign customers, as well as hyperscalers utilizing AI clouds.”
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Third-quarter guidance of $108.0 billion, plus or minus 2%, is a step up from the quarter just reported — and it assumes no Data Center compute revenue from China at all, so China represents optionality excluded from the number rather than a risk embedded in it. show quote

“Revenue is expected to be $108.0 billion, plus or minus 2%. NVIDIA is not assuming any Data Center compute revenue from China in its outlook.”
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Supply commitments more than doubled in a single quarter, from $119 billion to $279 billion, driven mainly by memory procurement — NVIDIA is pre-committing to scarce inputs years ahead, which secures supply but converts flexible cost into fixed obligation. show quote

“Our commitments increased from $119 billion last quarter to $279 billion, primarily related to the procurement of memory.”
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as of 2026-08-30