Shares of chipmaker Nvidia slipped in after-hours trading after the company reported better-than-expected 2026 second-quarter earnings and revenue results.
The tech behemoth reported record quarterly revenue of $46.74 billion, a 56 percent increase in the quarter and surpassing the Wall Street consensus forecast of $46.06 billion.
Earnings per share—a measure of how much profit a business generates for each share of its stock—came in at $1.05 versus the market estimate of $1.01.
This represents an increase from 67 cents per share a year ago.
Data center sales fell short of forecasts as Nvidia reported $41.1 billion, slightly below the $41.29 billion projection. They accounted for 88 percent of total sales in the previous quarter.
Gaming and networking revenue came in better than expected, totaling $4.3 billion and $7.25 billion, respectively.
The company approved an additional $60 billion in stock buybacks.
This market function consists of businesses repurchasing their own shares from the stock market to reduce the number of outstanding shares, which typically bolsters the stock’s value and enhances financial ratios.
Looking ahead, third-quarter revenues are projected to range from $52.9 billion to $55.1 billion, compared to investors’ expectations of $53.46 billion.
In its outlook, Nvidia did not assume any H20 shipments to China.
The H20 is a specialized artificial intelligence (AI) graphics processing unit made for the Chinese market, downgraded from its high-end chips to comply with U.S. export regulations.
Nvidia shares tumbled about 2 percent following the closing bell. The stock closed the Aug. 27 trading session little changed at $181.60.
This year, Nvidia’s stock has risen more than 31 percent.
