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Nvidia's $96.2 Billion Quarter Headlines Week of Blockbuster Earnings and Mega-Deals
Authored By HDFC SKY | Last Modified: Aug 29, 2026 09:42 AM IST

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Mumbai, Aug 29: The final full trading week of August 2026 proved to be one of the most eventful periods for US corporate news, as a deluge of earnings reports, multi-billion-dollar mergers, strategic partnerships and blockbuster contract announcements sent shockwaves through Wall Street. The technology sector dominated headlines with Nvidia Corporation reporting record-breaking quarterly revenue of $96.2 billion, while the artificial intelligence theme extended its reach across industries through major partnerships and contracts.
Meanwhile, the retail sector delivered a mixed bag of earnings surprises, the healthcare and industrial sectors witnessed significant consolidation through multi-billion-dollar acquisitions, and the real estate industry saw the completion of a transformative merger between two of its largest players. The week also featured a landmark legal settlement by a major technology company, a significant IPO listing, and several high-profile capital-raising activities that drew substantial investor attention.
Nvidia (Nasdaq: NVDA) Shatters Records with $96.2 Billion Quarterly Revenue as AI Demand Accelerates
Nvidia Corporation (Nasdaq: NVDA) delivered what analysts described as a “blowout” quarter, reporting fiscal second-quarter revenue of $96.2 billion, up 18% sequentially and 106% year-over-year, substantially exceeding Wall Street’s consensus estimate of $92.2 billion.
Adjusted earnings came in at $2.22 per share, surpassing the $2.10 analyst consensus. The data centre segment, which houses Nvidia’s AI-focused GPU business, led the charge with revenues surging to $890 billion, exceeding market estimates of $858.6 billion. The company also issued revenue guidance for the next fiscal year that topped estimates, reinforcing the narrative of sustained AI infrastructure buildout.
The results mattered because Nvidia has become the bellwether for the entire artificial intelligence ecosystem, and its performance serves as a barometer for enterprise AI spending globally. The company’s adjusted gross margins remained exceptionally strong at 79.4%, demonstrating the company’s continued pricing power in the AI chip market.
Also Read: What Is the New York Stock Exchange (NYSE)?
Nvidia shares traded roughly 3.8% higher in after-hours trading following the results, with the stock climbing 4% on the company’s forecast. The company’s market capitalisation remained north of $3 trillion, cementing its position as one of the most valuable publicly traded companies in the world. Among notable gainers for the week, Nvidia’s performance stood out as a bellwether for the AI-driven technology rally.
Nvidia to Acquire Hugging Face for $12.9 Billion in Blockbuster AI Deal
In a stunning move that sent shockwaves through the technology sector, Nvidia (Nasdaq: NVDA) agreed to acquire AI startup Hugging Face in a deal valued at $12.9 billion.
The acquisition significantly expands Nvidia’s reach in the artificial intelligence ecosystem, adding Hugging Face’s popular open-source platform for machine learning models to Nvidia’s already formidable AI portfolio. The deal represents one of the largest AI acquisitions in history and underscores Nvidia’s aggressive strategy to dominate every layer of the AI value chain, from chips to software platforms.
The strategic rationale behind the acquisition was to give Nvidia direct access to Hugging Face’s community of millions of developers and its vast repository of pre-trained AI models.
By integrating Hugging Face’s platform with Nvidia’s GPU hardware and software stack, the company aims to create an end-to-end AI development ecosystem that could lock in developers and enterprises alike. Nvidia shares continued their upward trajectory on the news, adding to the gains from the company’s blockbuster earnings report.
Salesforce (NYSE: CRM) Delivers 80% EPS Beat as Agentforce ARR Crosses $1.5 Billion
Salesforce Inc. (NYSE: CRM) delivered what analysts called a “blowout” fiscal second quarter , reporting adjusted earnings per share of $5.90, an astonishing 80% beat over the consensus estimate of $3.27. Revenue reached $11.35 billion, slightly above the $11.33 billion consensus, representing 10.8% year-on-year growth. The company’s net income increased 87% year-over-year to $3.53 billion.
The results were particularly significant as they addressed market concerns that AI would diminish demand for enterprise software. Salesforce highlighted that Agentforce, its AI agent platform, had achieved annual recurring revenue exceeding $1.5 billion. For the fiscal third quarter, Salesforce guided revenue to $11.42–$11.50 billion and adjusted EPS of $3.42–$3.44, both slightly above consensus estimates.
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The company’s current remaining performance obligation, a key metric for future revenue visibility, rose 10% to $29.5 billion. The stock surged 11.8% in after-hours trading to $230.44 immediately following the results, later climbing as high as 18% in extended trading, making Salesforce one of the notable gainers for the week.
CrowdStrike (Nasdaq: CRWD) Swings to Profit with 26% Revenue Growth on AI Security Demand
CrowdStrike Holdings Inc. (Nasdaq: CRWD) reported second-quarter fiscal 2027 results this week, delivering a clean beat on both top and bottom lines. The cybersecurity giant posted total revenue of $1.47 billion, up 26% year-over-year and surpassing the Zacks Consensus Estimate of $1.44 billion by 2.15%. Adjusted earnings per share came in at $0.31, beating the consensus estimate of $0.29. The company swung to a profit and raised its annual revenue forecast, citing strong AI-driven cybersecurity demand.
The results mattered because CrowdStrike is a leader in the endpoint security space, and its performance reflects the broader trend of enterprises increasing cybersecurity spending amid rising threats. The company’s subscription revenue, which forms the bulk of its business, grew 27% year-over-year to $1.38 billion. Annual recurring revenue reached $6.0 billion, representing 25% growth. Shares surged 20.5% following the report, climbing as much as 12% in after-hours trading, positioning CrowdStrike among the week’s notable gainers.
Okta (Nasdaq: OKTA) Shares Surge 28.6% as Earnings Handily Beat Estimates
Okta Inc. (Nasdaq: OKTA) reported second-quarter results, sending its shares surging 28.6% after the company’s earnings handily beat estimates. The company reported Q2 fiscal 2027 revenue of $805 million, up 11% year-over-year, while subscription revenue increased 12% to $793 million. Remaining performance obligations rose 17% to $4.858 billion, with current RPO increasing 14% to $2.585 billion.
GAAP net income climbed to $116 million from $67 million a year earlier, while diluted GAAP EPS rose to $0.65 from $0.37. Non-GAAP diluted EPS increased to $1.05 from $0.91. Operating cash flow reached $234 million, compared with $167 million, while free cash flow rose to $227 million from $162 million. For FY27, Okta expects revenue of $3.216–$3.226 billion and non-GAAP EPS of $3.90–$3.94.
Abercrombie & Fitch (NYSE: ANF) Posts Stunning $2.18 EPS Beat as Shares Open 3.3% Lower
Abercrombie & Fitch Co. (NYSE: ANF) delivered one of the most striking earnings beats of the week. Abercrombie & Fitch Co. reported second-quarter adjusted EPS of $4.17, beating the analyst consensus of $1.98, while revenue rose 5% year-over-year to $1.3 billion, ahead of the $1.25 billion estimate. The results included approximately $100 million in pre-tax IEEPA tariff refunds, contributing $1.75 per diluted share, while operating margin reached 20%, above the previous outlook of around 10%.
Sales increased 5% in the Americas, 19% in APAC and 2% in EMEA, with both Abercrombie and Hollister reporting record quarterly sales. The company raised FY26 EPS guidance to $13.10–$13.60 from $10.20–$11.00 and now expects net sales growth of around 5%, compared with 3%–5% previously. Shares rose more than 11% premarket following the results.
Dollar General (NYSE: DG) Reports Mixed Results as Earnings Beat But Revenue Misses
Dollar General Corporation (NYSE: DG) reported second-quarter adjusted EPS of $2.48, beating the analyst consensus of $2.00, while revenue increased 5.2% year-over-year to $11.3 billion, above the $11.19 billion estimate. Same-store sales rose 3.5%, supported by a 2.0% increase in customer traffic and a 1.5% rise in average transaction value, marking the fifth consecutive quarter of traffic growth. Operating profit increased 29.2% to $769.2 million, while gross margin expanded 127 basis points to 32.6%, helped by tariff refunds, a lower LIFO provision and reduced distribution costs.
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Dollar General raised FY2026 adjusted EPS guidance to $7.80–$8.00 from $7.20–$7.45 and increased its net sales growth outlook to 4.0%–4.3%. Same-store sales growth guidance was raised to 2.5%–2.9% from 2.2%–2.7%. Shares surged 8.4% premarket following the results. The board also declared a $0.59 quarterly dividend per share, payable on or before 20 October 2026.
Dollar General (NYSE: DG) closed the week at $122.09, down 1.07% from $123.41 on 21 August, despite a 2.53% earnings-day gain on 27 August. The stock’s decline made Dollar General one of the notable losers for the week, reflecting concerns about the broader retail sector’s outlook.
Dick’s Sporting Goods (NYSE: DKS) Plunges 29% as Foot Locker Acquisition Weighs on Results
Dick’s Sporting Goods (NYSE: DKS) shares plunged nearly 29% to around $128 after its second-quarter results missed expectations and the retailer sharply reduced its full-year earnings outlook.
Adjusted EPS was $3.53, below the $3.76 estimate and $4.38 a year earlier, while sales reached $5.59 billion, versus expectations of $5.65 billion. Adjusted operating margin fell to 8.1% from 13.0%. The core Dick’s business remained comparatively strong, with sales rising 5.6% to $3.85 billion and comparable sales increasing 4.9%.
However, Foot Locker, acquired for $2.5 billion, reported a 3.6% decline in pro forma comparable sales and a $31.9 million segment loss. Dick’s cut FY adjusted EPS guidance to $11–$12 from $13.50–$14.50, while Foot Locker’s segment-profit outlook shifted from a $110–$150 million profit to a $40–$80 million loss.
Williams-Sonoma (NYSE: WSM) Surges 6.2% Comps as Operating Margin Hits 22.9%
Williams-Sonoma (NYSE: WSM) reported strong second-quarter fiscal 2026 results with comparable brand revenue rising 6.2% and total revenue increasing 6.7% year-over-year. GAAP diluted EPS rose 42% to $2.84, while non-GAAP diluted EPS increased 5% to $2.10. GAAP operating margin reached 22.9%, while the non-GAAP margin was 17.3%. Gross margin benefited from $167.8 million in tariff refunds, although tariff-related costs pressured merchandise margins.
Operating cash flow reached $696 million, including $200.2 million of tariff refunds and related interest. The company raised its FY2026 outlook, expecting net revenue growth of 4.7%–7.2%, comparable sales growth of 4.0%–6.5% and a non-GAAP operating margin of 17.8%–18.2%. Following the results, Williams-Sonoma shares fell 2.13% to $163.53, indicating a decline despite the stronger quarterly performance and raised guidance.
Bank of Montreal (NYSE: BMO) Q3 Adjusted EPS Rises 22% to C$3.96, Shares Gain
Bank of Montreal reported robust adjusted third-quarter results, with adjusted EPS rising 22% year-over-year to C$3.96 and adjusted net income reaching a record C$2.9 billion. Reported EPS was C$2.38, while net income stood at C$1.8 billion after a C$973 million charge, largely linked to goodwill associated with the planned sale of its Transportation Finance and Vendor Finance businesses.
Total revenue increased 11%, while expenses rose 9%, improving the efficiency ratio to 54.9%. Canadian personal and commercial banking net income grew 15%, US banking increased 9%, Wealth Management rose 22%, and Capital Markets climbed 45%. Credit provisions declined to C$722 million, while the CET1 ratio remained at 13%. The bank proposed a buyback of up to 25 million shares, representing about 3.6% of shares outstanding. Bank of Montreal shares rose 0.99% to C$174.06 in afternoon NYS
McKesson (NYSE: MCK) Signs $2.25 Billion Agreement to Acquire Precision Medicine Group
McKesson Corporation (NYSE: MCK) shares rose 3.2% after the company announced a definitive agreement to acquire Precision Medicine Group for approximately $2.25 billion. The transaction will add clinical research and biopharma commercialisation services to McKesson’s portfolio, with Precision Medicine Group expected to report within its Oncology & Multispecialty segment after closing. Precision Medicine provides clinical research, biomarker intelligence, laboratory services, market access consulting and commercialisation support to biotechnology and pharmaceutical companies.
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McKesson said the acquisition will strengthen its oncology and multispecialty strategy, expand clinical research capabilities and support clinical trial execution. The transaction remains subject to customary closing conditions, including regulatory clearances, while no completion timeline was disclosed.
nVent Electric (NYSE: NVT) to Acquire Maverick Power for $1.75 Billion, With Up to $550 Million Additional Consideration
nVent Electric plc (NYSE: NVT) announced that it had agreed to acquire Maverick Power for $1.75 billion, with potential additional cash consideration of up to $550 million tied to performance targets for 2027 and 2028. Maverick Power, which supplies engineered power distribution and infrastructure solutions for data centres, generated estimated 2026 revenue of $700 million. The acquisition is expected to strengthen nVent’s data-centre portfolio and expand its power distribution offerings. nVent expects the transaction to be accretive to adjusted EPS in the first year after completion, with closing targeted for the fourth quarter of 2026, subject to regulatory approval. Following the announcement, nVent shares fell approximately 2.3%, closing at around $153.75.
Ursa Major to Go Public Through $2.3 Billion SPAC Merger with Bleichroeder Acquisition Corp.
Ursa Major, a Colorado-based defence technology company, plans to go public through a merger with Bleichroeder Acquisition Corp. III in a transaction valuing the combined company at approximately $2.3 billion. The deal is expected to provide at least $350 million in committed financing, including a PIPE investment, to expand production of hypersonic missiles, solid rocket motors and spacecraft propulsion systems.
Ursa Major has a pre-money equity valuation of approximately $1.6 billion, while the transaction is expected to close in the first quarter of 2027, subject to shareholder and regulatory approvals. The company plans to expand manufacturing in Colorado, including its Galeton solid rocket motor facility. Revenue increased from $18.5 million in 2024 to $45 million in 2025, with management projecting approximately $100 million for 2026.
Nayax (Nasdaq: NYAX) Expands into Smart Parking with $350 Million Acquisition of IPS Group
Nayax (TASE: NYAX) announced an agreement to acquire IPS Group, a provider of smart parking technology, for approximately $350 million in cash. The transaction expands Nayax’s cashless commerce platform into the smart parking sector and broadens its addressable market across physical-world payment infrastructure. IPS Group operates across North America, the UK and Ireland, providing smart parking and payment solutions for parking operators and municipalities. Nayax plans to integrate IPS Group’s technology into its existing payment acceptance and management platform, extending its services beyond traditional unattended retail applications such as vending.
Nayax develops integrated point-of-sale devices and software that enable cashless payments and operational management for self-service businesses across the US, Europe, UK, Australia, Israel and other markets. Following the announcement, Nayax shares fell 1.19%, according to the cited market data. The acquisition is intended to combine IPS Group’s parking technology with Nayax’s existing payment and management capabilities.
Victory Capital Acquires First Eagle for $7 Billion and Vanguard Buys Altruist
Victory Capital’s shares rose 5.6% after the asset manager announced a $7 billion cash-and-stock acquisition of First Eagle Investments, signalling a positive market reaction to the deal. The transaction is expected to create a combined asset manager with approximately $571 billion in assets under management and around $3.2 billion in annual revenue.
Under the agreement, Victory will pay $4.4 billion in cash and $2 billion in shares, while assuming approximately $575 million of First Eagle’s debt. The acquisition is expected to increase Victory’s scale and expand its presence across equity, fixed-income, alternative-credit and multi-asset investment strategies.
The deal also supports Victory’s longer-term target of reaching $1 trillion in assets under management, compared with $348.8 billion as of 31 July 2026. First Eagle managed approximately $222 billion in assets at the same date.
The transaction is expected to close by the end of the first quarter of 2027, subject to regulatory and other approvals. Victory expects the acquisition to increase 2027 adjusted EPS by approximately 35%, providing a key factor behind the share-price gain.
Real and RE/MAX Holdings Complete Transformative Business Combination
Real REMAX Group Inc. (Nasdaq: REAX) completed its previously announced business combination with The Real Brokerage Inc. and RE/MAX Holdings, Inc., with the combined company beginning operations under the Real REMAX Group name. Real’s shares and RE/MAX Holdings’ Class A common stock ceased trading on their respective exchanges after the close on 24 August 2026, while Real REMAX Group shares began trading on the Nasdaq under REAX on 25 August.
Under the transaction terms, former Real shareholders received one Real REMAX Group share for each Real share held following a 10-for-1 share consolidation. Former RE/MAX Holdings shareholders received either 0.515 REAX shares or approximately $4.33 in cash plus 0.3535 REAX shares, subject to proration. Following the completion, REAX shares fell 6.1% to $2.30, compared with the previous close of $2.45 for Real before the transaction.
USA Rare Earth (Nasdaq: USAR) Completes $1.55 Billion SPV Capitalisation Backed by US Department of War
USA Rare Earth (NASDAQ: USAR) shares fell 5.9%, despite the company completing the $1.55 billion capitalisation of a special purpose vehicle (SPV) established to acquire 100% of Phase 1 rare earth production from Serra Verde Group. The funding marks a key step towards completing the planned acquisition.
The financing includes a $750 million commitment from the U.S. Department of War, increased from the previously proposed $500 million. The U.S. government has also agreed to purchase at least $300 million of rare earth products over five years under a forward purchase arrangement.
An unnamed Tier-1 institutional bank has committed up to $500 million through a senior secured revolving credit facility, taking the SPV’s funding capacity to $1.25 billion, alongside the government purchase agreement.
The Serra Verde transaction, announced in April, would give USA Rare Earth ownership of the Pela Ema mine in Goiás, Brazil. Shareholders are scheduled to vote on the acquisition on 28 August 2026. Completion remains subject to shareholder approval and other closing conditions.
$232.8M to $2B Deals Trigger Sharp Moves in Navitas, Valley National, AstroNova and Pasqal Shares
Navitas Semiconductor (Nasdaq: NVTS) agreed to acquire Claros for up to $232.8 million, targeting power-management technology for AI data centres. The announcement initially lifted Navitas shares, which gained 5.3% to $12.88, as investors responded to the potential expansion of its AI infrastructure opportunity. However, the initial gains were not sustained, with shares trading lower later in the week.
Valley National Bancorp (Nasdaq: VLY) announced a $247 million acquisition of Providence Financial, using a combination of cash and stock to expand its presence in the Chicago market. The transaction was valued using Valley’s $14.10 closing share price on 24 August. The stock’s subsequent movement reflected the market’s assessment of the acquisition and its potential to strengthen Valley’s deposit and commercial banking footprint.
Also Read: US Stock Market Timings
AstroNova (Nasdaq: ALOT) received shareholder approval for Arcline Investment Management’s $29-per-share all-cash acquisition. With the transaction approaching completion, the stock remained closely tied to the fixed takeover consideration before trading ended as AstroNova became privately held.
Pasqal completed its business combination with Bleichroeder Acquisition Corp. II (Nasdaq: BBCQ), with its shares and warrants expected to begin trading on Nasdaq under “PSQL” and “PSQLW” on 28 August 2026. The transaction provides approximately $360 million in cash to fund QPU manufacturing, technology development and global commercial expansion. Pasqal currently has seven QPUs deployed, three more in production and more than 25 commercial and research applications, supporting its expansion across quantum computing markets.
US IPOs and SPAC Deals Raise Over $395 Million as Five Public-Market Transactions Advance
During the week, the US IPO and special purpose acquisition company (SPAC) market saw several notable developments, with three blank-check companies raising a combined $395.5 million through initial public offerings, while proposed business combinations involving Astrum Space and Evernorth moved forward. Inflection Point Acquisition Corp. VIII priced a $250 million IPO, while JATT III Acquisition Corp. completed a $69 million offering and Southern Cross Acquisition II Corp. completed a $76.5 million IPO. Separately, Astrum Space agreed to merge with Black Spade Acquisition III, while Evernorth cleared an important regulatory milestone towards its proposed Nasdaq listing.
Inflection Point Acquisition Corp. VIII announced the pricing of its $250 million IPO on 27 August, with its units beginning trading on the Nasdaq Global Market on 28 August under the ticker IPHXU. The company offered 25 million units at $10 each, with each unit comprising one Class A ordinary share and one-third of a redeemable warrant. The SPAC was formed to identify a target for a business combination and had not announced a specific acquisition target at the time of pricing. Its previous SPAC vehicle, Inflection Point Acquisition II, completed a business combination with USA Rare Earth in March 2025.
JATT III Acquisition Corp. completed its IPO on 27 August, raising $69 million after the underwriters exercised their over-allotment option in full. The offering was initially sized at $60 million, with the additional shares taking total gross proceeds to $69 million. Its units began trading on the Nasdaq Capital Market under the ticker JTTT on 25 August. JATT III is focused on identifying businesses in the healthcare and life sciences sectors, including biotechnology and technology-enabled businesses.
Southern Cross Acquisition II Corp. also completed its IPO during the week, raising $76.5 million in gross proceeds. The company sold 7,652,630 units at $10 each, including shares issued following a partial exercise of the underwriters’ over-allotment option. Its units began trading on the Nasdaq Capital Market under the ticker SCATU on 26 August. Each unit comprises one ordinary share, one redeemable warrant and one-fourth of an ordinary share in the form of a right upon completion of a business combination. The company also completed a concurrent private placement that raised an additional $2.25 million.
Also Read: What Are Fractional Shares?
Meanwhile, Astrum Space Inc. entered into a business combination agreement with Black Spade Acquisition III Co. (NYSE: BIII) on 27 August. The proposed transaction values Astrum Space at an equity value of approximately $1 billion, excluding the approximately $172.5 million held in Black Spade III’s trust account, assuming no shareholder redemptions. Astrum Space is developing a satellite-to-device broadcast and data-distribution network targeting the Asia-Pacific region. Subject to shareholder and regulatory approvals and other customary conditions, the transaction is targeted for completion by the end of 2026, after which the combined company is expected to operate as Astrum Space Company and trade on the New York Stock Exchange.
Evernorth also moved closer to its proposed public listing after the US Securities and Exchange Commission (SEC) declared effective the Form S-4 registration statement connected with its planned business combination with Armada Acquisition Corp. II on 28 August. The transaction is scheduled to proceed to an Armada shareholder vote on 30 September 2026. If the transaction is approved and completed, the combined company is expected to trade on the Nasdaq under the ticker XRPN. The S-4 effectiveness is a regulatory milestone and does not mean that Evernorth has already completed its merger or begun trading publicly.Top of Form
KBR (NYSE: KBR) Wins Multiple Contracts Including Kazakhstan SAF Plant and UK Government Deal
KBR (NYSE: KBR) announced on 24 August 2026 that it had secured a contract to develop Kazakhstan’s first sustainable aviation fuel (SAF) production plant for KazMunayGas-Aero and KazFoodProducts. The project will use KBR’s PureSAF technology, developed by Swedish Biofuels, with an alcohol-to-jet process converting domestically produced agricultural feedstocks into lower-carbon aviation fuel.
The contract strengthens KBR’s position in SAF technology and supports Kazakhstan’s plans to develop its aviation sector while reducing emissions. However, KBR did not disclose the contract’s value, production capacity or expected completion date, so no financial contribution from the project can be quantified. KBR shares were reported at $43.57 on 24 August, down 0.33%, according to the source.
The week’s corporate developments highlighted the continued dominance of the artificial intelligence theme, with Nvidia’s record-breaking results and the surge in cybersecurity earnings underscoring the sustained demand for AI infrastructure. The wave of M&A activity across healthcare, asset management, and industrial sectors suggests continued corporate confidence in strategic consolidation. The strong technology sector rally, led by Nvidia, Salesforce, CrowdStrike and Okta, demonstrated the market’s appetite for companies with clear AI-driven growth narratives, while the mixed retail earnings reflected the uneven nature of consumer spending recovery.
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Please Note: The information shared is intended solely for informational purposes and does not make any investment recommendations
Source
- spglobal.com/spdji/en/indices/equity/sp-500/
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