NVIDIA Tops Estimates, Grows +41% on Data Center
Wednesday, August 27, 2025
It was another quietly positive day for the stock market, with all four major indexes closing in the green this Hump Day. The Dow gathered another +147 points, +0.32%, while the S&P 500 — notching another all-time closing high in the process — gained +15 points, +0.24%. The Nasdaq was +14, +0.21%, and the small-cap Russell 2000 came in +15 points, +0.64%. Bond yields cooled a few basis points among the 10-year, 2-year and 30-year t-bills.
NVIDIA Reports Healthy Q2, Adds Buyback
The biggest earnings news of this week just came across the wires in the past few minutes: NVIDIA NVDA, the supreme AI stock play in the world, easily beat estimates on both top and bottom lines — estimates that were already quite extraordinarily high. Earnings of $1.05 per share outpaced the $1.00 expected, and well past the 68 cents per share reported in the year-ago quarter.
Revenues of $46.7 billion nicely surpassed the $46.14 billion in the Zacks consensus, with $41.1 billion 9n revenues coming from its Data Center segment alone. That’s up +5% quarter over quarter and +56% year over year. Estimates were for +53.6% revenue growth. These are astonishing numbers for the $4+ trillion market cap giant. Adjusted Gross Margins reached +72.7% for the quarter — another magnificent number, though off the +75% NVIDIA was posting a year ago.
And the good news just keeps coming: a $60 billion share buyback was OK’d by the company, which has already awarded shareholders $23.4 billion through the first half of the fiscal year. NVIDIA has $56.8 billion in cash. Yet shares are down -3% on the news; the stock is up +35% year to date, and roughly +90% from its April lows.
Other Earnings Reports This Afternoon: URBN, FIVE, SNOW
Urban Outfitters URBN also put up strong numbers in its Q2 report after today’s close, with earnings of $1.58 per share zooming ahead of the $1.44 anticipated. Revenues of $1.50 billion in the quarter topped consensus of $1.48 billion and amounted to +11.3% year to date. All four of its main brand stores — Anthropologie, Free People, Urban Outfitters and Nully — built gains from the year-ago quarter.
Five Below FIVE scorched earnings estimates by 20 cents to 81 cents per share on $1.0 billion in revenues, ahead of the $997.3 million expected. Comps came in at +12.4% in the quarter, and guidance for next quarter is way up on both earnings and sales. Shares are up +2.5% in late trading, adding to its +37.5% gains year to date.
Snowflake SNOW shares are up +12.7% after posting a Q2 report that was beyond expectations: earnings of 35 cents per share swept ahead of the 26 cents in the Zacks consensus on $1.01 billion in sales, which beat the $1.09 billion estimated and +32% year over year. The cloud-based data analytics firm has now beaten earnings estimates in all but one quarter for now 17 quarters.
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This article originally published on Zacks Investment Research (zacks.com).
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