Dell Technologies reported fiscal second-quarter results that exceeded Wall Street expectations, prompting a 9% share price increase in extended trading on Tuesday. The company generated revenue that topped every analyst estimate, with sales climbing approximately 58% year over year for the quarter ending July 31. Net income reached $4.13 billion, or $6.34 per share on an adjusted basis, compared with $1.16 billion, or $1.70 per share, in the corresponding quarter a year earlier.
The company significantly raised its full-year outlook, now projecting $25.50 in adjusted earnings per share on $192 billion in revenue. This compares with analyst expectations of $18.92 per share and $172.67 billion in revenue, and represents a substantial increase from May guidance that called for $17.90 per share and $165 billion to $169 billion in revenue. For the fiscal third quarter specifically, Dell provided guidance of $6.50 in adjusted earnings per share on $49.0 billion in revenue, implying 81% growth and significantly surpassing consensus estimates of $4.49 per share and $41.42 billion in revenue.
The Infrastructure Solutions Group, which handles data center hardware, generated $31.78 billion in revenue during the quarter, up 89% and above analyst consensus. AI-optimized servers within that segment contributed $16.40 billion in revenue. Traditional servers and networking equipment revenue jumped 122% to $10.53 billion, while storage revenue climbed nearly 26% to $4.85 billion. The Client Solutions Group, which sells personal computers and related products, posted $15.03 billion in revenue, up 20% year over year.
Operating Chief Jeff Clarke attributed part of the elevated revenue guidance to price increases stemming from rising input costs. The company also noted strong customer demand for AI-centric workloads, indicating that traditional server purchases are being driven by needs for meaningful computing capacity to support artificial intelligence and agentic workflows. During the quarter, Dell secured a $9.7 billion contract to provide software to the U.S. military, and cloud infrastructure provider Iren agreed to purchase $1.6 billion in Dell hardware including servers containing Nvidia chips.
Dell’s shares have appreciated 236% year to date, substantially outpacing the S&P 500 index, which gained 11% over the same period. The company now forecasts $74 billion in AI-optimized server sales for the fiscal year, representing 200% growth and a significant revision upward from the 103% growth projection made six months prior.
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