Dell Technologies reported fiscal second-quarter results that exceeded Wall Street expectations, driving a 9% increase in the company’s share price during extended trading on Tuesday. The computer maker posted revenue of approximately $24.5 billion with 58% year-over-year growth for the quarter ended July 31. Net income reached $4.13 billion, or $6.34 per share, compared to $1.16 billion, or $1.70 per share, in the prior-year quarter.
The company significantly lifted its full-year guidance, now projecting $25.50 in adjusted earnings per share and $192 billion in revenue. This represents a substantial increase from the company’s previous expectations of $17.90 per share and $165 billion to $169 billion in revenue issued in May. Analysts had anticipated $18.92 per share and $172.67 billion in revenue. For the fiscal third quarter specifically, Dell guided to $6.50 in adjusted earnings per share on $49.0 billion in revenue, implying 81% growth and exceeding analyst consensus estimates of $4.49 per share and $41.42 billion.
The company attributed the elevated revenue guidance partly to price increases stemming from climbing input costs, according to operating chief Jeff Clarke. Dell’s Infrastructure Solutions Group, which serves the data center hardware market, generated $31.78 billion in fiscal second-quarter revenue, up 89% year-over-year and surpassing analyst expectations. Within that segment, AI-optimized server revenue reached $16.40 billion. Traditional servers and networking equipment revenue jumped 122% to $10.53 billion, while storage revenue increased 26% to $4.85 billion.
Dell now forecasts $74 billion in AI-optimized server sales for the fiscal year, reflecting 200% growth compared to a previous estimate of 103% growth from six months earlier. During the quarter, the company 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. Dell’s shares have gained 236% year to date, significantly outpacing the S&P 500’s 11% advance, as investors increasingly view the company as a prime beneficiary of artificial intelligence infrastructure expansion.
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