Dell Technologies reported financial results that exceeded Wall Street expectations, prompting a 9% stock price increase in extended trading on Tuesday. The company’s fiscal second-quarter revenue grew approximately 58% year over year to an amount higher than all analyst estimates, with the quarter ending on 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 period a year earlier.
The company significantly raised its outlook for the fiscal third quarter, projecting $6.50 in adjusted earnings per share on $49.0 billion in revenue, implying 81% growth. This forecast substantially exceeded analyst expectations of $4.49 per share and $41.42 billion in revenue. Dell also increased its full-year guidance to $25.50 in adjusted earnings per share on $192 billion in revenue, compared with analyst estimates of $18.92 per share and $172.67 billion in revenue. The updated full-year guidance represents a substantial increase from the company’s May projection of $17.90 per share and $165 billion to $169 billion in revenue.
Dell’s Infrastructure Solutions Group, which focuses on data center hardware, generated $31.78 billion in fiscal second-quarter revenue, up 89% and exceeding consensus expectations. The segment derived $16.40 billion in revenue from AI-optimized servers, surpassing analyst estimates. Storage revenue increased almost 26%, while traditional servers and networking equipment revenue jumped 122% to $10.53 billion. Company executives attributed the robust performance to growing customer demand for computing capacity supporting AI and agentic workflows.
The company projected $74 billion in AI-optimized server sales for the fiscal year, representing 200% growth and substantially higher than a prior forecast of 103% growth made six months earlier. Dell’s year-to-date stock performance significantly outpaced broader market gains, with shares climbing 236% compared with an 11% gain for the S&P 500. 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 cloud infrastructure provider Iren.
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