Nvidia reports fourth-quarter earnings after the bell
Nvidia CEO Jensen Huang holds a Blackwell GeForce RTX 50 Series GPU (L) and a RTX 5000 laptop as he delivers a keynote address at the Consumer Electronics Show (CES) in Las Vegas, Nevada on January 6, 2025.
Patrick T. Fallon | Afp | Getty Images
Nvidia reports fourth-quarter earnings on Wednesday after the bell.
Here’s what Wall Street is expecting, according to LSEG consensus estimates:
- EPS: $0.84, adjusted
- Revenue: $38.04 billion
Nvidia’s earnings report on Wednesday will put the finishing touches on one of the most remarkable years from a large company ever. Not only do analysts expect a 72% increase in revenue in the quarter ended in January, but sales for the full fiscal year are expected to more than double to nearly $130 billion.
The company’s growth streak has been driven by the fact that its data center graphics processing units, or GPUs, are essential hardware for building and deploying artificial intelligence applications like OpenAI’s ChatGPT.
In the past two years, Nvidia stock has risen more than 440%, and it’s been the most valuable U.S. company at times with a market cap over $3 trillion.
But the stocks’ meteoric growth has slowed in recent months — it’s trading at the same price as it did last October. Slowing the company’s appreciation are questions from investors about what Nvidia does next, and if it can keep growing.
Nvidia CEO Jensen Huang will get an opportunity on Wednesday to answer lingering questions from investors and analysts about what the AI boom looks like two years in.
In particular, Nvidia investors are worried about any signs that the company’s most important customers — hyperscale cloud companies — might be tightening their belts after years of big capital expenditures. They were also shaken by a Chinese AI model, DeepSeek’s R1, which challenged assumptions that more Nvidia chips would be needed to build smarter AI.
There’s also a possibility that attention on DeepSeek could prompt U.S. officials to further restrict Nvidia’s exports of AI chips to China on national security grounds. Nvidia is already barred from shipping its most advanced AI chips to the region, and it makes specially limited versions of its chips specifically for China.
Additionally, investors will want to know how the Blackwell rollout is going after reports that distribution of some versions of Nvidia’s latest AI chip may be happening slower than previously expected due to heating and yield challenges.
Morgan Stanley analysts estimated this month that Microsoft will account for nearly 35% of spending in 2025 on Blackwell, Google is at 32.2%, Oracle at 7.4% and Amazon at 6.2%.
Last week, TD Cowen analysts said they had learned that Microsoft had canceled leases with private data center operators and had slowed its process of negotiating to enter into new leases. The report raised fears about the sustainability of AI infrastructure growth, of which a large portion of spending is on Nvidia’s chips.
Microsoft pushed back Monday, saying it still planned to spend $80 billion on infrastructure in 2025. Plus, most of Nvidia’s other key customers touted large investments. Alphabet is targeting $75 billion in capital expenditures this year, Meta will spend as much as $65 billion and Amazon is aiming to spend $100 billion.
“We have talked to industry participants over the weekend, and while it’s certainly possible that there are longer lead time changes relating to land, the Microsoft GPU demand has not changed,” wrote Morgan Stanley analyst Joseph Moore in a note this week. He has a $152 price target on Nvidia stock.
Still, investors will be listening for any signs that Nvidia’s relationship with cloud companies remains strong. They’ll also be listening to Nvidia’s guidance for its fiscal 2026, and how much growth over last year’s elevated sales can be expected.
Teladoc Health Inc. signage on the floor of the New York Stock Exchange on Dec. 31, 2024.
Michael Nagle | Bloomberg | Getty Images
Teladoc Health shares fell in extended trading on Wednesday after the company reported a wider loss than analysts expected and issued disappointing quarterly guidance.
Here’s how the company did, compared to analysts’ consensus estimates from LSEG:
- Loss per share: 28 cents vs. 24 cents expected
- Revenue: $640.5 million vs. $639.6 million expected
Revenue at the telehealth company decreased 3% in the fourth quarter from $660.5 million during the same period last year, according to a release. Teladoc’s net loss widened to $48.4 million, or 28 cents per share, from a loss of $28.9 million, or 17 cents per share, a year ago.
Teladoc is in the middle of a deep slump, with its stock price dropping in each of the past four years due to hefty competition in remote health, challenges at mental health division BetterHelp and high operating costs.
When Teladoc acquired digital health company Livongo in 2020, the companies had a combined enterprise value of $37 billion. Teladoc’s market cap was around $1.9 billion as of market close on Wednesday.
“As we look forward in 2025, execution will continue to be a top priority as we advance efforts to unlock growth opportunities and position the company for long term success,” Teladoc CEO Chuck Divita said in the statement. “We will also remain focused on our cost structure, building on the significant improvements achieved in 2024 over the prior year.”
Teladoc reported adjusted earnings of $74.8 million in its fourth quarter, a 35% decrease from a year ago. Adjusted earnings for the company’s Integrated Care segment declined 5% to $53.2 million, and BetterHelp saw adjusted earnings drop 63% to $21.7 million.
For the first quarter, Teladoc said it expects revenue of between $608 million and $629 million, while analysts were expecting $632.9 million. The company said adjusted earnings will be between $47 million and $59 million for the period.
Earlier this month, Teladoc announced it will acquire preventative care company Catapult Health in an all-cash deal for $65 million. Teladoc said its outlook includes the anticipated contribution from the deal but not the effect of potential impairments or purchase accounting. Teladoc said the acquisition should close at the end of the month.
Teladoc will host its quarterly call with investors at 4:30 p.m. ET.
— CNBC’s Bertha Coombs contributed to this report.
Salesforce CEO Marc Benioff appears at the World Economic Forum in Davos, Switzerland, on Jan. 23, 2025.
Halil Sagirkaya | Anadolu | Getty Images
Salesforce reported weaker-than-expected quarterly revenue on Wednesday and issued a forecast that fell short of analysts’ estimates. The stock price slipped 4% in extended trading.
Here’s how the company did compared with LSEG consensus:
- Earnings per share: $2.78 adjusted vs. $2.61 expected
- Revenue: $9.99 billion vs. $10.04 billion expected
Revenue increased 7.6% from a year ago in the quarter that ended Jan. 31, according to a statement. Net income rose to $1.71 billion, or $1.75 per share, from $1.45 billion, or $1.47 per share, a year earlier.
The top category of subscription and support revenue was service, at $2.33 billion. The figure was up about 8% and below the $2.37 billion consensus among analysts surveyed by Visible Alpha. In the sales category, Salesforce generated $2.13 billion in revenue, up 8% and also trailing Visible Alpha’s consensus of $2.17 billion.
During the quarter, the company introduced its second-generation Agentforce artificial intelligence agent technology, which answers employee questions in the Slack team communications app.
Salesforce said it has completed more than 3,000 paid deals involving Agentforce since October. Agentforce has gotten involved in 380,000 conversations through Salesforce’s help website, with humans getting involved in 2% of cases, according to the statement.
“A lot of other vendors are talking about their agent capabilities, but few are able to show that they’ve got this really running at scale,” co-founder and CEO Marc Benioff said on a conference call with analysts.
Agentforce will make a modest contribution to revenue in fiscal 2026, with a larger effect in the following year, said Amy Weaver, Salesforce’s outgoing finance chief.
Benioff referred to a forthcoming product in the area of information technology service management, where ServiceNow operates.
The U.S. Department of Government Efficiency is using Slack, Benioff said.
“We’ll work closely with the government,” he said. “We’ll do anything we can to help them succeed.”
The company called for $2.53 to $2.55 in adjusted earnings per share for the fiscal first quarter, with $9.71 billion to $9.76 billion in revenue. Analysts polled by LSEG had anticipated adjusted earnings of $2.61 per share, with $9.9 billion in revenue.
For fiscal 2026, Salesforce is targeting $11.09 to $11.17 in adjusted earnings per share on $40.5 billion to $40.9 billion in revenue, implying 7.4% growth. The LSEG consensus was for adjusted earnings per share of $11.18 on $41.35 billion in revenue.
As of Wednesday’s close, Salesforce shares are down about 8% so far in 2025, while the S&P 500 index has gained about 1%.
Technology
Instacart suffers steepest drop on record after disappointing revenue, lackluster forecast
The Instacart logo is seen on a smartphone and on a PC screen.
Pavlo Gonchar | SOPA Images | Lightrocket | Getty Images
Instacart‘s stock had its worst day on record, slumping 12% after the grocery delivery company posted a fourth-quarter revenue miss and offered light guidance for the current period.
Prior to Wednesday’s move, the stock’s biggest one-day slump came in November, when it dropped 11%.
Instacart reported fourth-quarter revenue of $883 million, falling short of the $891 million average analyst estimate, according to LSEG. The company said it anticipates adjusted earnings of between $220 million and $230 million for the first quarter, below a consensus forecast of $237.1 million.
Gross transaction value, which measures the value of products sold, will come in between $9 billion and $9.15 billion in the quarter, compared to a FactSet estimate of $9 billion. Instacart said it expects average order growth to decline due to restaurant orders and its $0 delivery fee on minimum $10 baskets.
When Instacart held its Nasdaq debut in September 2023, it became the first notable venture-backed company to go public in the U.S. in about two years, as the market adjusted to soaring inflation and rising interest rates.
The company, whose official corporate name is Maplebear, closed its first day on the market with a roughly $11 billion market cap, down from its $39 billion private market valuation in 2021 during the Covid-19 pandemic.
The stock peaked at $53.15 on Feb. 19 after rallying 76% last year. It closed on Wednesday at $42.80.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports11 months agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway