A month has gone by since the last earnings report for Nvidia (NVDA) . Shares have lost about 1.4% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Nvidia due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.NVIDIA Q2 Earnings Beat Expectations, Revenues Increase Y/YNVIDIA ...

Core Thesis - NVIDIA Corporation is experiencing significant growth driven by AI GPU demand, with a bullish outlook supported by strong financial performance and market positioning [1][5]. Financial Performance - NVIDIA reported a record revenue of $46.7 billion, representing a 56% year-over-year increase and a 6% sequential rise, surpassing estimates by 2.7% [2]. - Earnings per share (EPS) reached $1.05, exceeding expectations by 5% [2]. - The Data Center segment was the primary growth driver, generating $41.1 billion in revenue, also up 56% [2]. - Automotive revenue increased by 69% to $586 million, while Gaming revenue rose by 49% to $4.3 billion [2]. - Networking revenue nearly doubled to $7.3 billion, with Spectrum X achieving over $10 billion in annualized revenue [2]. Geographic Performance - U.S. revenue surged 80% to $23.5 billion, accounting for over half of total sales, while revenue from China declined by 25% to $2.8 billion due to restrictions [3]. - Taiwan and other international markets showed solid growth, indicating broad-based demand [3]. Margins and Shareholder Returns - GAAP gross margin was 72.4% and operating margin was 60.8%, both showing a modest year-over-year contraction due to rising costs [3]. - Free cash flow margin decreased to 28.8% [3]. - Shareholder returns were robust, with $10 billion returned and a new $60 billion repurchase authorization announced [3]. Future Outlook - Management guided Q3 revenue to $54 billion, well above consensus, driven by accelerating Blackwell deployments and expanding networking demand [4]. - Despite challenges from China restrictions and rising expenses, NVIDIA is positioned as a leader in AI infrastructure, with growth drivers in sovereign AI, robotics, and enterprise workloads [4]. Market Positioning - NVIDIA's stock has appreciated approximately 54% since a previous bullish thesis, reflecting strong Data Center growth and record earnings [5]. - The company maintains a durable competitive advantage, with an emphasis on Blackwell-driven momentum [5].

Core Viewpoint - NVIDIA Corporation reported mixed financial results for the first quarter of fiscal 2026, with earnings per share missing estimates but revenues showing significant year-over-year growth driven by strong performance across various segments [1][2]. Financial Performance - Non-GAAP earnings for the first quarter were 81 cents per share, missing the Zacks Consensus Estimate by 4.71%, but increased 32.8% year over year and declined 9% sequentially [1]. - Revenues reached $44.06 billion, up 69.2% year over year and 12% sequentially, surpassing the consensus estimate by 2.67% [2]. Segment Analysis - NVIDIA's revenues are categorized into two segments: Graphics and Compute & Networking [3]. - The Graphics segment contributed 10.2% of total revenues, with a year-over-year increase of 33% to $4.47 billion, although it fell short of estimates [4]. - Compute & Networking accounted for 89.8% of revenues, with a significant year-over-year growth of 75% to $39.6 billion, exceeding estimates [5]. Market Platform Performance - Data Center revenues, making up 88.8% of total revenues, increased 73.3% year over year to $39.1 billion, driven by demand for Blackwell GPU platforms [6]. - Gaming revenues rose 30.7% year over year to $3.76 billion, reflecting strong demand from various user groups [7]. - Professional Visualization revenues increased 19.2% year over year to $509 million, while Automotive sales grew 72.3% year over year to $567 million [8][9]. - OEM and Other revenues were up 42.3% year over year to $111 million [10]. Operating Metrics - Non-GAAP gross margin was 61%, down 17.9 percentage points year over year due to a $4.5 billion charge related to inventory issues [12]. - Non-GAAP operating expenses rose 43% year over year to $3.58 billion, but as a percentage of total revenues, they decreased to 8.1% [13]. - Non-GAAP operating income increased 29% year over year to $23.28 billion, with a decline in operating margin to 52.8% [14]. Balance Sheet and Cash Flow - As of April 27, 2025, NVIDIA had cash and marketable securities of $53.7 billion, up from $43.2 billion [14]. - Operating cash flow was $27.4 billion, significantly higher than the previous year [15]. - The company returned $244 million to shareholders through dividends and repurchased $14.1 billion in stocks [16]. Guidance - For the second quarter of fiscal 2026, NVIDIA anticipates revenues of $45 billion, slightly below the consensus estimate, with a projected non-GAAP gross margin of 72% [17].

Core Viewpoint - NVIDIA Corporation reported better-than-expected results for the fourth quarter of fiscal 2025, with shares trading 1% higher in pre-market [1] Financial Performance - Non-GAAP earnings were 89 cents per share, exceeding the Zacks Consensus Estimate by 5.95%, reflecting a 71% year-over-year increase and a 10% sequential increase [1] - Fiscal fourth-quarter revenues reached $39.33 billion, a 78% year-over-year increase and a 12% sequential increase, surpassing the consensus estimate of $37.72 billion [3] Segment Performance - The Graphics segment accounted for 8% of revenues, with a decline of 22% year over year and 19% sequentially to $3.3 billion, below the estimate of $4.82 billion [5] - Compute & Networking represented 92% of revenues, with a 101% year-over-year increase and a 16% sequential increase to $36.04 billion, exceeding the estimate of $32.68 billion [7] - Data Center revenues, making up 90.5% of total revenues, increased 93% year over year and 16% sequentially to $35.58 billion, driven by higher shipments of advanced GPU platforms [8][9] Operating Metrics - Non-GAAP gross margin was 73.5%, down 320 basis points year over year and 150 basis points sequentially, attributed to a shift to more complex systems [13] - Non-GAAP operating expenses rose 53% year over year and 11% sequentially to $3.38 billion, but as a percentage of total revenues, they decreased to 8.6% from 10% a year ago [14] - Non-GAAP operating income increased 73% year over year and 10% sequentially to $25.52 billion, with a non-GAAP operating margin of 64.9% [15] Cash Flow and Shareholder Returns - NVIDIA generated $16.6 billion in operating cash flow for the fourth quarter, up from $11.5 billion year over year but down from $17.6 billion sequentially [17] - The company returned $245 million to shareholders through dividends and repurchased $8.1 billion in stocks during the fourth quarter [18] Future Guidance - For Q1 2026, NVIDIA anticipates revenues of $43 billion (+/-2%), higher than the Zacks Consensus Estimate of $41.06 billion, with a projected non-GAAP gross margin of 71% (+/-50 bps) [20]