On Wednesday, Nvidia reported earnings for the second quarter of its fiscal year 2026 and despite an inevitable slowdown in revenue growth, the chipmaker once again beat expectations, posting record revenue and profit.
In the three months ended July 27, 2025, Nvidia's revenue grew 55 percent from the same period a year earlier, reaching $46.7 billion compared to its own outlook of $45.0 billion and analyst expectations of $46.2 billion. Once again, Nvidia's data center business was at the heart of the company's record-breaking quarter, as it saw a 56-percent increase in revenue versus a year ago and accounted for almost 90 percent of total sales. Net income surged to $26.4 billion in the quarter, which is six times the company's full-year profit for fiscal 2023, the last year without the impact of AI. For the current quarter, Nvidia expects revenue of $54 billion, which would be another 54-percent increase over the same quarter of last year, when the company's revenue had already surged to $35 billion.
While some shareholders, spoiled by the past two years, may sniff at 50 percent growth, it's inevitable that growth rates come back to earth after a period of such extreme expansion. After all, Nvidia's revenue has grown roughly sixfold over the past two years, meaning that it's virtually impossible to keep growing at the triple-digit rates seen in the early quarters of the company's revenue surge. Compared to the same quarter of last year, Nvidia's revenue grew $16.7 billion. That's roughly the same increase as the year before, only then it was equivalent to 122 percent growth due to the smaller base.
Addressing eventual growth concerns in a conference call with investors, Nvidia CEO Jensen Huang laid out the potential he sees for the next five years. The rise of reasoning agentic AI, he argued, would bring another leap in computing requirements that could create a $3 to $4 trillion AI infrastructure opportunity. Moreover, he described China - a market that is currently in limbo due to trade restrictions - as a $50-billion opportunity for Nvidia this year with the potential to grow 50 percent annually, like the rest of the world's AI market is doing.
