Nvidia beat Wall Street's second-quarter revenue estimates on Wednesday, posting $96.2 billion in sales against the $92.2 billion consensus. Adjusted EPS came in at $2.22, ahead of the $2.10 forecast. The company guided Q3 revenue to $108 billion, plus or minus 2% — well above the $104.2 billion analysts were looking for.
Data Center Revenue Up 117%
The data center business drove the quarter. Revenue hit $89 billion, a 117% year-over-year gain, and beat the $85.8 billion forecast. Sales to hyperscalers were $48.8 billion versus a $43.1 billion estimate. That strength pushed adjusted net income to $54 billion, up 118% from the same quarter a year ago.
Margins and Memory Commitments
Adjusted gross margin held at 75%, in line with the company's guidance. For the next quarter, Nvidia expects that margin to come in at 74%. Purchase commitments climbed from $119 billion to $279 billion, mostly for memory procurement. That's a meaningful shift in spending, and it's coming ahead of the Vera Rubin ramp.
Q3 Guidance and Vera Rubin
Nvidia guided third-quarter revenue to $108 billion, plus or minus 2%, above the $104.2 billion consensus. The company also confirmed Vera Rubin, the successor to Blackwell, is in full production.
Stock Falls Despite the Beat
NVDA stock slipped in after-hours trading even after the earnings beat. It's now the fourth straight report where the shares have dropped after results. The company returned about $26 billion to shareholders in the quarter and still holds roughly $99 billion in buyback authorization. Nvidia and Micron together drive about a third of Wall Street's earnings growth, a fact that doesn't seem to be moving the stock right now.
