RESOLVING THE LEDGER
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See the full story · 2 sourcesDell Technologies shares moved 5% higher in extended trading on Tuesday after the computer maker reported results and a forecast that easily cleared Wall Street expectations.
Here's how the company did relative to LSEG consensus:
Revenue came in higher than every estimate, growing about 58% year over year for the fiscal second quarter, which ended on July 31, according to a statement . Net income of $4.13 billion, or $6.34 per share, increased from $1.16 billion, or $1.70 per share, in the same quarter a year ago. Adjusted earnings exclude impact from stock-based compensation.
For the fiscal third quarter, Dell called for $6.50 in adjusted earnings per share on $49.0 billion in revenue, which implies 81% growth. Analysts polled by LSEG had anticipated $4.49 per share and $41.42 billion in revenue.
Dell ratcheted up its full-year view. The company now sees $25.50 in adjusted earnings per share on $192 billion in revenue. Analysts surveyed by LSEG were expecting $18.92 per share and $172.67 billion in revenue. As of May , the company's 2027 guidance included $17.90 in adjusted earnings per share, with $165 billion to $169 billion in revenue.
As of Tuesday's close, Dell shares had gained 236% year to date, while the wider S&P 500 index is up 11% over the same period. The stock has become a popular choice for investors who want to bet on the continuing growth of artificial intelligence infrastructure. In July President Trump , who has bought Dell shares since returning to office last year, again recommended buying Dell computers .
Michael Dell, the company's founder, chairman and CEO, is now the world's fifth richest person, according to Bloomberg calculations.
The company's Infrastructure Solutions Group targeting data center hardware posted $31.78 billion in fiscal second-quarter revenue, up 89% and more than the $29.61 billion consensus among analysts polled by StreetAccount. In that segment, Dell generated $16.40 billion in revenue from AI-optimized servers. The sum was above StreetAccount's $16.07 billion consensus.
Revenue from traditional servers and networking equipment jumped 122% to $10.53 billion. Storage revenue, at $4.85 billion, went up almost 26%.
Dell's Client Solutions Group, which sells PCs and accessories to consumers and commercial clients, contributed $15.03 billion in revenue. The number was up 20% but slightly lower than StreetAccount's $15.08 billion consensus.
During the quarter, Dell received a $9.7 billion contract to provide software to the U.S. military, and AI-centric cloud infrastructure provider Iren said it agreed to buy $1.6 billion in Dell hardware, including servers that contain Nvidia chips.
Dell now foresees $74 billion in AI-optimized server sales for the fiscal year, which would be up 200%. Just six months ago, the company had predicted 103% growth.
Executives will discuss the results with analysts starting at 4:30 p.m. ET.
WATCH: Piper Sandler's James Fish looks ahead to Dell earnings Tuesday
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