Victoria's Secret Q2 Earnings Preview: Revenue Expectations and Analyst Sentiment

Victoria's Secret is set to report Q2 earnings on Thursday. The company beat revenue expectations last quarter but missed gross margin estimates. Analysts expect flat revenue of $1.4 billion and adjusted earnings of $0.13 per share. Despite missing revenue estimates twice in the last two years, analysts have generally reconfirmed their estimates for the company.

US stock futures rose slightly on Tuesday evening ahead of Nvidia's (NVDA) Q2 earnings report. Futures for the Nasdaq 100, Dow Jones Industrial Average, and S&P 500 Index were up 0.1%, 0.05%, and 0.07%, respectively. Several other companies, including Kohl's, CrowdStrike, HP Inc., and Snowflake, will also report earnings tomorrow. Stocks closed higher on Tuesday, despite concerns over President Trump's dismissal of a top Federal Reserve official.

Nvidia is set to release its Q2 FY26 earnings report on Wednesday after market close. Analysts anticipate robust financial performance, with key expectations including earnings of $1.01 per share and revenues of $46.05 billion, representing a 49% and 53% year-over-year (YoY) increase, respectively [1]. Analysts have maintained Buy ratings and raised price targets, with one analyst increasing the price target to $215 from $190. Options traders are expecting a 6.68% move in either direction.

According to Stifel's top analyst, Roy, Nvidia is expected to deliver another strong quarter, with Q2 revenue projected at $45.8 billion, slightly above the company's own outlook of $45 billion [1]. The positive outlook is driven by strong demand for Nvidia's AI hardware, with supply issues remaining limited. Despite concerns about an "AI bubble" and a slower-than-expected GPT-5 launch, analysts remain bullish on Nvidia's prospects. Twelve out of 13 Wall Street analysts recommend the stock as a "buy," with price targets ranging from $155 to $225 [1].

Nvidia's strong performance is attributed to the continued growth in its Data Center business, which benefits from the increasing adoption of cloud-based solutions and the growing hybrid working trend. The company's AI chips, including the A100, H100, B100, B200, and GB200, are the top choices for building and running powerful AI applications, positioning Nvidia as a leader in the generative AI market [1].

However, Nvidia faces potential headwinds from China export curbs, which could result in an $8 billion hit. The company has reportedly told suppliers to suspend production of its H20 chip due to security concerns raised by Beijing [3]. This move is expected to impact the company's revenue, particularly in its data center business, which has been a primary growth engine.

Analysts remain optimistic about Nvidia's future. UBS analyst Timothy Arcuri recently raised his price target to $205 from $175, citing strong demand signals and projecting another beat in the upcoming Q2 earnings report [2]. Despite the challenges, Nvidia's strong product portfolio and leadership in AI make it a compelling investment opportunity.

To invest in Nvidia without taking on significant risk, consider VanEck Semiconductor ETF (SMH) or iShares Global Tech ETF (IXN), which provide diversified exposure to Nvidia and other major tech companies.

References:
[1] https://www.tipranks.com/news/why-stifels-top-analyst-says-buy-nvidia-stock-ahead-of-q2-earnings
[2] https://www.ainvest.com/news/nvidia-q2-earnings-expected-bring-10-upside-invest-etfs-2508/
[3] https://www.tweaktown.com/news/107313/nvidia-spectrum-xgs-connects-data-centers-in-different-cities-to-create-ai-super-factories/index.html