Data center revenues account for most of the tech giant's second-quarter sales.

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.