Nvidia reports fiscal Q2 2027 earnings after the close Wednesday August 26 and Wall Street is expecting something extraordinary, approximately $91.9 billion in revenue, up 96 percent year over year, and earnings per share well above prior guidance.
The company is expected to deliver it. The frustrating reality, as Yahoo Finance's AlphaSpace analysis shows, is that it probably won't matter for the stock.
Nvidia's share price has fallen in response to earnings in six of the past eight quarters, including the last four straight. The pattern is consistent: Nvidia posts numbers that would be considered miraculous at almost any other company, issues guidance well above consensus, CEO Jensen Huang says bullish things on the call, and the stock still drops.
The most recent example: when Nvidia reported its Q1 fiscal 2027 results in May, shares fell despite another substantial beat.
The mechanism is simple but frustrating. Nvidia has outperformed the S&P 500 by five percentage points over the past month heading into Wednesday. Expectations are running extremely hot.
The market is priced for perfection and then some. When a company is priced for perfection, delivering perfection is a zero. Delivering anything less, or even delivering perfection without a new narrative to push the valuation higher, results in a sell.
Nvidia is still up 18 percent for the year. The stock just doesn't go up on earnings day anymore.