[Earnings Recap] Nvidia Beats Again, But CRM Steals the Show
Wednesday delivered one of the busiest tech earnings nights of the season. Nvidia crushed expectations again, Salesforce and CrowdStrike surged on stronger AI demand, while Abercrombie jumped more than 35% after raising its outlook.
$NVIDIA(NVDA)$+4% after hours
Nvidia makes the GPUs and computing systems that power most advanced AI data centers.
Fiscal Q2 revenue reached $96.2 billion, up 106% year over year, beating Wall Street’s roughly $92.3 billion estimate. Adjusted EPS came in at $2.22, ahead of the $2.09 consensus. Data Center revenue surged 117% to $89 billion.
The outlook was also strong. Nvidia expects Q3 revenue of about $108 billion, above estimates near $104–$105 billion. Vera Rubin is now ramping into full production, and management says AI-compute demand is still running ahead of supply.
The one concern is profitability: Q3 gross margin is expected to ease to around 74% as memory and other component costs rise. Shares initially dipped after the release before reversing higher later in extended trading.
$Salesforce.com(CRM)$+13% after hours
Salesforce sells cloud software that companies use to manage sales, customer service and marketing.
Fiscal Q2 revenue rose 11% to $11.35 billion, slightly above expectations, while adjusted EPS came in at $5.90, far above the roughly $3.27 consensus.
Salesforce raised its FY27 revenue outlook to $46.1–$46.4 billion and lifted adjusted EPS guidance to $16.67–$16.71. AI and data products are becoming a bigger part of the story, with annual recurring revenue approaching $4 billion.
Shares jumped about 13% after hours as the results eased fears that generative AI could disrupt traditional enterprise software faster than Salesforce could adapt.
$CrowdStrike Holdings, Inc.(CRWD)$ +9% after hours
CrowdStrike provides cloud-based cybersecurity software that helps businesses protect devices, accounts and data.
Q2 revenue rose 26% to $1.47 billion, ahead of the $1.44 billion Wall Street expected. Adjusted EPS of $0.31 also topped the $0.29 consensus, while annual recurring revenue climbed 25% to $5.84 billion.
The company raised its full-year revenue forecast to $5.99–$6.01 billion, up from $5.91–$5.96 billion previously. Investors are increasingly betting that wider AI adoption will create additional cybersecurity demand rather than disrupt CrowdStrike’s business. Shares rose more than 10% after hours.
$Abercrombie & Fitch(ANF)$ +35%
Abercrombie & Fitch is an apparel retailer that owns the Abercrombie and Hollister brands.
Q2 revenue reached a record $1.27 billion, slightly above expectations near $1.25 billion. EPS came in at $4.17, well ahead of the roughly $1.99 consensus, helped in part by tariff refunds.
The company raised full-year EPS guidance to $13.10–$13.60, from $10.20–$11.00, and now expects annual sales growth of about 5%. Abercrombie brand sales rose 8%, showing that demand remains surprisingly resilient despite broader concerns about consumer spending. Shares surged more than35%.
Today’s discussion:
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Salesforce +13%, CrowdStrike +10% — Is AI Software Back?
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