Dell Technologies shares don move 9% higher for extended trading on Tuesday after di computer maker report results and forecast wey easily clear Wall Street expectations.
Di company report revenue wey pass every estimate, wey grow about 58% year over year for di fiscal second quarter wey end on July 31. Net income na $4.13 billion, or $6.34 per share, wey increase from $1.16 billion, or $1.70 per share, for di same quarter last year.
Adjusted earnings no include di effect of stock-based compensation. For di fiscal third quarter, Dell call for $6.50 adjusted earnings per share on $49.0 billion in revenue, wey imply 81% growth. Analysts wey LSEG poll expect $4.49 per share and $41.42 billion in revenue.
Dell don ratchet up ein full-year view. Di company now see $25.50 adjusted earnings per share on $192 billion in revenue. Analysts wey LSEG survey expect $18.92 per share and $172.67 billion in revenue. As of May, di company’s 2027 guidance include $17.90 adjusted earnings per share, with $165 billion to $169 billion in revenue.
Price increases wey climbing input costs cause factor into di elevated revenue guidance, na so Jeff Clarke, Dell’s operating chief, talk for conference call with analysts.
As of Tuesday’s close, Dell shares don gain 236% year to date, while di wider S&P 500 index dey up 11% over di same period. Di stock don become popular choice for investors wey want fit bet on di continuing growth of artificial intelligence infrastructure.
For July, President Trump, wey don buy Dell shares since e return to office last year, again recommend people make dem buy Dell computers. Michael Dell, di company’s founder, chairman and CEO, na im be di world’s fifth richest person according to Bloomberg calculations.
“There’s an old Texas saying wey I may just make up,” Michael Dell post for X after di results become available. “If you keep growing EPS 200%+ y/y something good go happen.”
Di company’s Infrastructure Solutions Group wey dey target data center hardware post $31.78 billion for fiscal second-quarter revenue, up 89% and pass di $29.61 billion consensus among analysts wey StreetAccount poll. For that segment, Dell generate $16.40 billion in revenue from AI-optimized servers. Di sum dey above StreetAccount’s $16.07 billion consensus. Storage revenue, at $4.85 billion, go up almost 26%. Revenue from traditional servers and networking equipment jump 122% to $10.53 billion.
“We dey see growing trend of customers wey require meaningful CPU compute capacity to support AI and agentic workflows,” Clarke talk. “These workloads dey create incremental demand for traditional servers.”
Dell’s Client Solutions Group, wey sell PCs and accessories to consumers and commercial clients, contribute $15.03 billion in revenue. Di number na up 20% but e dey slightly lower than StreetAccount’s $15.08 billion consensus. “One of di things wey we do earlier this year na say we see di PC market dey show signs of softening for di second half,” Clarke talk. “We optimize di bits and bytes wey we get towards di infrastructure business.”
During di quarter, Dell receive a $9.7 billion contract to provide software to di U.S. military, and AI-centric cloud infrastructure provider Iren say e agree to buy $1.6 billion in Dell hardware, including servers wey contain Nvidia chips. Dell now foresee $74 billion in AI-optimized server sales for di fiscal year, wey go be up 200%. Just six months ago, di company don predict 103% growth.
