Nasdaq 100: Nvidia’s Strong Guidance Impresses, Salesforce Slumps on Weak Outlook

Nvidia Beats Earnings Expectations While Salesforce Disappoints with Cautious Guidance

Nvidia and Salesforce delivered contrasting earnings results on Wednesday, highlighting diverging fortunes in the technology sector. Nvidia posted robust fourth-quarter earnings that surpassed Wall Street forecasts, buoyed by strong demand for its AI-driven data center processors. Meanwhile, Salesforce fell short of revenue expectations and provided soft guidance, raising concerns over the adoption of its AI agent platform.

Did Nvidia’s Earnings Live Up to Expectations?

Nvidia reported fourth-quarter revenue of $39.33 billion, exceeding analyst expectations of $38.05 billion, according to LSEG. Adjusted earnings per share came in at $0.89, beating estimates of $0.84. The company also issued strong guidance for the current quarter, projecting revenue of approximately $43 billion, plus or minus 2%, ahead of the anticipated $41.78 billion.

Net income surged to $22.09 billion, or $0.89 per diluted share, up from $12.29 billion, or $0.49 per share, a year earlier. Nvidia’s total revenue jumped 78% for the quarter, while fiscal-year revenue soared 114% to $130.5 billion, driven by its dominance in the AI accelerator market through its data center graphics processors.

The data center division, which now represents 91% of Nvidia’s total sales (up from 83% last year), generated $35.6 billion in revenue in the fourth quarter—an impressive 93% annual increase that topped FactSet’s $33.65 billion estimate. Nvidia CEO Jensen Huang highlighted “amazing” demand for the upcoming Blackwell AI processors, setting an optimistic tone for future growth.

Why Did Salesforce Shares Drop After Earnings?

Salesforce provided a downbeat fiscal 2026 revenue forecast, with projections ranging between $40.5 billion and $40.9 billion, missing Wall Street’s expectation of $41.35 billion. This cautious outlook weighed on shares, which dropped about 5% in after-hours trading.

The company cited slower adoption of its Agentforce AI platform as a drag on growth. It also forecast full-year adjusted earnings per share between $11.09 and $11.17, narrowly missing analysts’ estimates of $11.18. Fourth-quarter revenue reached $9.99 billion, slightly under the consensus of $10.04 billion, with first-quarter guidance also falling short at $9.71 billion to $9.76 billion, below the $9.90 billion expected.

The spending environment remains pressured by high interest rates and economic uncertainty, challenging Salesforce’s growth prospects. Analysts emphasized that a return to double-digit revenue growth hinges on accelerating Agentforce adoption.

What Should Traders Watch Next?

Traders should closely monitor Nvidia’s ability to meet demand for its Blackwell processors, which could further cement its leadership in the AI market. For Salesforce, the pace of Agentforce adoption will be critical, especially as the company navigates a cautious spending environment. Upcoming economic data and Federal Reserve signals on interest rates could also influence broader market sentiment, particularly for tech stocks.

More Information in our Economic Calendar.