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- Nvidia beat earnings and revenue estimates, forecast $108 billion in third-quarter revenue and projected growth of around 70% for fiscal 2028.
- Salesforce raised its full-year guidance after revenue increased 11% and expanded its partnership with Anthropic through Claudeforce.
Nvidia and Salesforce delivered stronger-than-expected quarterly results, reinforcing confidence in continued AI spending.
Nvidia provided an unusually strong long-term outlook, while Salesforce reported growing demand for its AI products and raised its full-year forecasts.
Nvidia Beats Estimates and Raises Its Outlook
The world’s most valuable company posted earnings of $2.22 per share, above analysts’ forecasts of $2.10, while revenue came in at $96.22 billion, well above analysts’ forecasts of $92.17 billion, leading to a rise of 6% in pre-market trading. ⁽¹⁾
Adjusted net income more than doubled to $53.95 billion, up from $24.76 billion a year earlier. Data center revenue, the company’s largest segment, rose to $89 billion, beating estimates of $85.08 billion. For the third quarter, Nvidia forecast revenue of $108 billion, plus or minus 2%, above the $104.19 billion analysts expected. ⁽²⁾
A Bold Forecast for Next Year
What stood out in Nvidia’s earnings is its outlook for fiscal 2028. The company said it expects revenue to rise around 70%, way above what analysts expected.
CFO Colette Kress said customer forecasts point to growth doubling next year, but the risk of supply issues could test how fast Nvidia could grow. ⁽³⁾
CEO Jensen Huang said AI has reached its “inflection point” where it is doing useful work. He noted this is a rare case where Nvidia is giving guidance a full year in advance, something the company does not normally do. ⁽⁴⁾
Nvidia also said it expects AI labs to make up about a quarter of its business next year, showing that demand is spreading beyond the big cloud companies. ⁽⁵⁾
Nvidia also announced it will deploy two million more GPUs with Amazon Web Services in 2027 and 2028.
Costs and China Remain Challenges
Nvidia had warned that rising prices for memory chips could continue to put pressure on its profit margins, which are estimated to fall around 72% in Q4.
Nvidia’s business in China also remains uncertain, where Chinese firms were cleared to buy Nvidia’s H200 chip earlier this year, but shipments have been slow, and Nvidia didn’t forecast its data center revenue in China. ⁽⁶⁾
Even with the strong results, Nvidia shares are up only 11 % this year, as investors weigh rising competition from AMD, Google, and others against the ongoing AI spending boom.
Salesforce Raises Guidance and Expands Anthropic Partnership
Salesforce also had a strong quarter. Profits rose to $3.53 billion up from $1.89 billion a year earlier. Earnings were $5.90 per share, far above the $3.27 analysts expected. Revenue rose 11% to $11.35 billion, slightly above estimates. ⁽⁷⁾
CEO Marc Benioff called it one of the company’s best quarters, pointing to AI as a major driver. Annual recurring revenue from the company’s AI products, Agentforce and Data 360, reached nearly $3.9 billion, more than triple the pace from a year ago. ⁽⁸⁾
Salesforce raised its full-year guidance, now expecting revenue of $46.1 billion to $46.4 billion and adjusted earnings per share of $16.67 to $16.71, both up from its prior forecast. The increase reflects both organic growth and upcoming acquisitions. ⁽⁹⁾
The company also announced an expanded partnership with Anthropic called Claudeforce. It includes a new plugin with more than three dozen prebuilt sales tools, such as meeting prep and deal reviews, built jointly by the two companies. ⁽¹⁰⁾
Salesforce shares jumped 13% in after-hours trading following the announcement, though the stock remains down 19% for the year so far.
Together, the results suggest AI spending remains strong across both infrastructure and enterprise software. However, Nvidia’s supply constraints and China uncertainty, alongside Salesforce’s need to turn AI adoption into sustainable growth, remain key risks for investors.
