Overview
- Fiscal Q2 revenue came in at $16.06 billion versus $16.21 billion expected, while adjusted EPS was $2.26, boosted by a $2.7 billion pretax gain from selling Oracle’s Ampere stake.
- Capital spending jumped to about $12 billion in the quarter and full‑year fiscal 2026 capex guidance was lifted by roughly $15 billion to about $50 billion.
- Remaining performance obligations hit a record ~$523 billion, driven by new commitments from Meta, Nvidia and others, though the figure was below some estimates.
- Shares fell roughly 11%–15%, on track for the worst single‑day drop since 2002, and the selloff weighed on other AI‑linked names.
- Executives emphasized chip neutrality, options for customer‑provided chips and vendor rental models to limit upfront outlays; free cash flow was about negative $10 billion and total debt exceeds $100 billion after recent bond sales.