Dell Technologies reported fiscal second-quarter results that exceeded Wall Street expectations across multiple metrics, prompting the company to raise its full-year guidance and triggering a 9% gain in share price during extended trading on Tuesday.
For the quarter ended July 31, Dell posted revenue growth of approximately 58% year over year, with net income reaching $4.13 billion, or $6.34 per share, compared with $1.70 per share in the prior-year quarter. The company’s Infrastructure Solutions Group, which focuses on data center hardware, generated $31.78 billion in quarterly revenue, up 89% and exceeding analyst estimates. Within that segment, AI-optimized server revenue reached $16.40 billion. The company’s storage business grew nearly 26%, while revenue from traditional servers and networking equipment jumped 122% to $10.53 billion. The Client Solutions Group, which sells PCs and accessories, contributed $15.03 billion in revenue, up 20% but slightly below consensus.
Dell significantly elevated its fiscal year guidance, now projecting $25.50 in adjusted earnings per share on $192 billion in revenue, surpassing analyst expectations of $18.92 per share and $172.67 billion. For the fiscal third quarter specifically, the company forecast $6.50 adjusted earnings per share on $49.0 billion in revenue, implying 81% growth. The company attributed elevated revenue guidance in part to price increases driven by climbing input costs. Dell also raised its projection for AI-optimized server sales to $74 billion for the fiscal year, representing 200% growth compared with a prior projection of 103% growth from six months earlier.
During the quarter, Dell secured a $9.7 billion software contract with the U.S. military and received a $1.6 billion hardware order from AI infrastructure provider Iren. Year to date, Dell shares had gained 236%, significantly outpacing the S&P 500’s 11% advance. The company’s strong positioning in artificial intelligence infrastructure has made it a popular choice among investors seeking exposure to AI growth.
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