Tech Stocks in Focus: Nvidia Down 2%, CrowdStrike Falls 4% Amid Q3 Guidance Disappointment

Nvidia's Q2 revenue fell shy of expectations, with data center revenue at $41.1bn, below estimates of $41.3bn. The company beat top and bottom lines, with revenue of $46.7bn and adjusted earnings of $1.05 per share. For Q3, Nvidia projected revenue of $54bn, plus or minus 2%. CrowdStrike shares fell nearly 4% after Q3 guidance disappointed investors, with revenue expected between $1.21bn and $1.22bn, below the average analyst estimate of $1.23bn.

NVIDIA (NASDAQ: NVDA) reported its second-quarter financial results for fiscal 2026, with revenue falling short of expectations. The company's data center revenue, a significant driver of its overall performance, came in at $41.1 billion, which was below the estimated $41.3 billion. Despite this, NVIDIA managed to beat both top-line and bottom-line estimates, with total revenue of $46.7 billion and adjusted earnings per share of $1.05.

The company's data center revenue grew 17% sequentially, but the overall revenue growth was more modest at 6% compared to the previous quarter. This growth was driven by strong performance in other segments, including gaming and professional visualization, which saw revenue increases of 14% and 18%, respectively. The company's gross margins remained robust, with GAAP and non-GAAP margins of 72.4% and 72.7%, respectively.

NVIDIA's outlook for the third quarter of fiscal 2026 is optimistic, with projected revenue of $54.0 billion, plus or minus 2%. The company expects gross margins to remain strong, with GAAP and non-GAAP margins of 73.3% and 73.5%, respectively. Operating expenses are expected to grow by approximately 30% for the full year, and the company continues to expect to exit the year with non-GAAP gross margins in the mid-70% range.

The company's stock price reacted negatively to the Q3 guidance, with shares falling nearly 4% after the announcement. This was in contrast to NVIDIA's strong performance in the second quarter, which saw the company beat both top-line and bottom-line estimates.

Overall, while NVIDIA's Q2 revenue fell short of expectations, the company's strong performance in other segments and its optimistic outlook for the third quarter suggest that the company is well-positioned to continue its growth trajectory.

References:
[1] https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-second-quarter-fiscal-2026