Dell Technologies reported financial results for the fiscal second quarter ended July 31 that surpassed analyst expectations, prompting a significant share price increase in extended trading. Revenue grew approximately 58% year over year, while net income reached $4.13 billion, or $6.34 per share, compared with $1.16 billion, or $1.70 per share, in the comparable prior-year period.
The company substantially raised its outlook for the fiscal year ahead. Dell now projects $25.50 in adjusted earnings per share on $192 billion in revenue, markedly higher than analyst estimates of $18.92 per share and $172.67 billion in revenue. For the fiscal third quarter specifically, management guided toward $6.50 in adjusted earnings per share on $49.0 billion in revenue, implying 81% growth and well above consensus forecasts of $4.49 per share and $41.42 billion in revenue. The company’s previous guidance from May had called for $17.90 in adjusted earnings per share and $165 billion to $169 billion in revenue.
Strength came primarily from the Infrastructure Solutions Group, which oversees data center hardware. This segment generated $31.78 billion in revenue, up 89%, with AI-optimized servers accounting for $16.40 billion. Traditional servers and networking equipment saw particularly robust growth of 122%, while storage revenue increased nearly 26%. Operating chief Jeff Clarke attributed the elevated guidance partly to price increases stemming from climbing input costs, while noting that customers increasingly require substantial computing capacity for artificial intelligence and agentic workflows, creating incremental demand even for traditional server products.
The Client Solutions Group, which sells personal computers and accessories, posted $15.03 billion in revenue, up 20% but slightly below analyst consensus. 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 featuring Nvidia chips. Looking ahead, Dell forecasts $74 billion in AI-optimized server sales for the fiscal year, representing 200% growth and substantially exceeding the 103% growth rate the company had projected six months prior.
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