While the entire market held its breath awaiting Nvidia's quarterly report, the artificial intelligence giant once again delivered impressive results. However, as after-hours trading on Wednesday showed, investors found something more attractive for their capital. Four companies not only beat Wall Street expectations but also delivered stronger stock gains than NVDA itself.
Nvidia: Great, but Not Enough
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 the consensus analyst forecast, which expected $2.10 per share and $92.17 billion in revenue. Moreover, the company's management gave an optimistic outlook for the third quarter, promising revenue of $108 billion, which also exceeded average market estimates.
Nevertheless, the market reaction was surprisingly subdued. Nvidia shares rose only 4% after the market close. While such a jump would be a triumph for any other company, for Nvidia, accustomed to double-digit gains, this looks like a disappointment. Investors clearly expected more from the company that has become a symbol of the AI revolution.
Okta and Salesforce: Growth Leaders
The real stars of the evening were Okta (OKTA) shares, which surged roughly 19% in after-hours trading. The company, specializing in digital identity management, earned $1.05 per share on revenue of $805 million, significantly beating forecasts of $0.97 and $795 million, respectively. Okta also raised its full-year profit and revenue guidance, which clearly pleased investors.
Salesforce (CRM) was not far behind, with its shares jumping approximately 13% after the earnings release. The company's adjusted profit more than doubled, reaching $5.90 per share, thanks to investment income. Net revenue came in at $11.35 billion versus a forecast of $11.32 billion. If this gain holds, it will add about 160 points to the Dow Jones Industrial Average on Thursday.
CrowdStrike and Veeva: Confident Superiority
CrowdStrike (CRWD) shares rose approximately 10% amid beating expectations on both revenue and earnings per share. The third-quarter forecast matched estimates on earnings and came in higher on revenue. Veeva Systems (VEEV), a software developer for the pharmaceutical industry, gained about 7%, also surpassing analyst forecasts on both key metrics.
Less Notable Moves
Among other companies reporting on Wednesday, Agilent Technologies (A) shares rose 4% — exactly 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 (P), formerly known as Pure Storage, gained approximately 2%, posting adjusted earnings of $0.70 per share on revenue of $1.19 billion, which also came in above expectations.
At the same time, Urban Outfitters (URBN) shares fell approximately 5%, despite results matching analyst expectations. The company's profit did not include a one-time duty refund.
Wednesday's trading once again confirmed a simple truth: beating earnings forecasts alone is not enough for confident stock growth. Much greater influence on quotes comes from long-term guidance and management comments about business prospects. Investors now have to see whether these results hold after the market opens on Thursday.
My view: the market is becoming increasingly demanding of companies, especially those riding the crest of the AI wave. The fact that Okta and Salesforce, which are not "pure" AI players, outpaced Nvidia in momentum suggests that investors are beginning to diversify their portfolios and seek undervalued opportunities in other technology sectors. This is a healthy signal for the market as a whole, reducing dependence on a single company.