Nvidia's quarterly report came in stronger than expected, but the market reaction was muted. While shares of the chipmaker itself rose only 4% after the close, four other companies showed much more impressive momentum, outpacing the leader in growth rates.
The spotlight was on Okta, Salesforce, CrowdStrike, and Veeva Systems. All four companies posted financial results that beat Wall Street consensus forecasts, which triggered their strong gains in after-hours trading.
Nvidia: Superior report, but modest reaction
Nvidia reported adjusted earnings of $2.22 per share on revenue of $96.22 billion for the second fiscal quarter. Both figures came in above analyst estimates, which had expected $2.10 per share and $92.17 billion in revenue, respectively. The company also issued a strong outlook for the third quarter, promising revenue of $108 billion, exceeding the average market estimate. Nevertheless, investors accustomed to more aggressive growth received the report without enthusiasm, limiting the stock's gain to 4%.
Okta and Salesforce: Growth leaders
Okta (OKTA) shares surged 19% in after-hours trading — the largest gain among all companies that reported on Wednesday. Adjusted earnings came in at $1.05 per share on revenue of $805 million, versus expectations of $0.97 and $795 million, respectively. The company also raised its full-year guidance for profit and revenue, which strengthened investor confidence.
Salesforce (CRM) rose approximately 13% after publishing its report. Adjusted earnings more than doubled, reaching $5.90 per share, largely thanks to investment results. Net revenue totaled $11.35 billion versus the forecast of $11.32 billion. If the gain holds, it could add about 160 points to the Dow Jones Industrial Average on Thursday.
CrowdStrike and Veeva: Confident upward movement
CrowdStrike (CRWD) gained about 10% on the back of beating expectations on both revenue and earnings per share. The third-quarter forecast matched estimates on earnings and came in higher on revenue, indicating sustained demand for cybersecurity.
Shares of Veeva Systems (VEEV), a software developer for the pharmaceutical industry, rose approximately 7%. The company also beat analyst forecasts on both key metrics, confirming the stability of its business model.
Less noticeable moves and one laggard
Agilent Technologies (A) shares added 4% — the same as Nvidia's stock. The company's third-quarter revenue totaled $1.88 billion, exceeding the FactSet forecast of $1.84 billion. Everpure (formerly Pure Storage) rose approximately 2% after its adjusted earnings of $0.70 per share and revenue of $1.19 billion beat expectations.
At the same time, Urban Outfitters (URBN) shares fell approximately 5%, despite results matching analyst expectations. The company's earnings did not include a one-time duty refund, which likely triggered the negative reaction.
Wednesday showed that merely beating earnings estimates is not enough for confident stock gains. Much stronger influences on quotes are long-term forecasts and management comments about business prospects. Investors will be closely watching whether these results hold after the market opens on Thursday.
My take: Nvidia's report, although strong, failed to reverse the profit-taking trend following the recent rally. The market is now more selective — it rewards companies that not only beat forecasts but also provide clear signals about future growth. Okta and Salesforce clearly won this round, and their momentum could set the tone for the entire technology sector in the coming weeks.