So let’s look at some earnings calls too.
Nvidia has reported mixed second quarter earnings for fiscal year 2026, posting a revenue of $46.74 billion, which is a 56% increase from the previous year. However, the company’s data center revenue of approximately $41.1 billion fell short of market expectations, resulting in a 4% dip in shares initially, although they later recovered to a 2% decline. The adjusted earnings per share were $1.05, surpassing the average market estimate of $1.01. Nvidia’s strong performance in the data center segment, which accounts for a significant portion of its revenue, was overshadowed by concerns about an AI bubble and geopolitical tensions affecting sales in China, particularly after export restrictions were implemented by the U.S. government. Additionally, Nvidia has begun to increase its focus on robotics and autonomous vehicles, identifying these areas as key growth opportunities alongside its AI initiatives.
Dell Technologies saw its shares decline over 5% in after-hours trading despite reporting better-than-expected earnings for the second quarter. The company achieved an earnings per share of $2.32, surpassing estimates of $2.30, and generated revenue of $29.78 billion, exceeding projections of $29.17 billion. However, Dell’s forecast for third-quarter earnings per share of $2.45 fell short of Wall Street’s expectation of $2.55, even as it projected third-quarter revenues of $27 billion, higher than the estimated $26.1 billion. The company noted that part of its profit forecast relies on the seasonality of its storage business, highlighting a 3% decline in storage revenue to $3.86 billion, which did not meet market expectations. Dell is planning to ship $20 billion worth of artificial intelligence servers in its fiscal 2026, doubling last year’s shipments, reflecting its significant role in the AI market.
Hewlett-Packard reported a net income of $700 million on revenues of $13.9 billion for the quarter ending July 31, marking a year-over-year revenue growth of 3.1 percent. According to HP President and CEO Enrique Lores, this is the company’s fifth consecutive quarter of revenue growth, driven largely by the strength in their Personal Systems segment, which achieved an operating profit of $541 million on $9.9 billion in revenues, a 6 percent increase year-over-year. In the Personal Systems business, commercial PC sales accounted for $7 billion, while consumer PC sales contributed $2.9 billion. Total PC unit sales increased by 5 percent year-over-year, with commercial units up 3 percent and consumer units rising by 8 percent. In contrast, the Printing segment reported a decline, bringing in $689 million in operating profit from $4 billion in revenues, down 4 percent year-over-year, with total hardware sales decreasing by 9 percent. Notably, HP indicated that 25 percent of its PC sales were attributed to artificial intelligence-enabled devices.
CrowdStrike Holdings has seen its stock decline following a disappointing revenue outlook amid the continued fallout from a recent IT outage. The cybersecurity firm reported second-quarter earnings of 93 cents per share, surpassing estimates but with revenue of $1.17 billion falling short of expectations. Analysts had predicted earnings of 83 cents per share, with revenue anticipated at $1.15 billion. CrowdStrike’s annual recurring revenue increased by 20% to $4.66 billion, exceeding analyst estimates, yet the guidance for the upcoming quarter suggests revenue may be lower than projected, ranging between $1.208 billion and $1.218 billion. The company faces ongoing challenges, including litigation from Delta Air Lines related to the IT outage and competition from firms like Palo Alto Networks and Microsoft.
Why do we care?
Earnings season is out, and it’s all about AI — but the shine is wearing thin. Nvidia’s numbers are massive, but Wall Street isn’t convinced the growth is endless. Dell beat expectations but cut its earnings forecast — still betting hard on AI servers. HP says a quarter of its PCs are now “AI-enabled,” which sounds as much like marketing as tech. And CrowdStrike? Feeling the heat from that outage — earnings up, but outlook down, with lawsuits to boot. I’m encouraged to see some pushback here.
Because here’s the pattern: vendors scream “AI” to keep investors happy, but what they’re really selling isn’t always what SMBs need. That gap between enterprise marketing and small business reality is where providers earn their keep — filtering the noise, calling out what’s hype, and helping clients place smart bets instead of chasing every AI label slapped on hardware.