Dell Technologies delivered results that exceeded analyst expectations across multiple metrics during its fiscal second quarter, which ended on July 31. The company reported revenue of approximately 58% year-over-year growth and net income of $4.13 billion, or $6.34 per share, compared with $1.16 billion, or $1.70 per share, in the prior year period. The stronger-than-expected performance prompted the company to elevate its full-year financial outlook substantially.
For the upcoming fiscal third quarter, Dell projected adjusted earnings per share of $6.50 on $49.0 billion in revenue, implying 81% growth. This forecast significantly surpassed LSEG analyst consensus estimates of $4.49 per share and $41.42 billion in revenue. On a full-year basis, the company now expects adjusted earnings per share of $25.50 on $192 billion in revenue, compared with prior analyst expectations of $18.92 per share and $172.67 billion in revenue. The company had previously guided to $17.90 in adjusted earnings per share with revenue between $165 billion and $169 billion earlier in the year.
The Infrastructure Solutions Group, which handles data center hardware, generated $31.78 billion in second-quarter revenue, up 89% from the prior year and ahead of analyst consensus. Revenue from AI-optimized servers totaled $16.40 billion during the period. Traditional servers and networking equipment revenue jumped 122% to $10.53 billion, while storage revenue increased approximately 26% to $4.85 billion. Dell’s operating chief attributed the strength in part to customers requiring computing capacity for artificial intelligence applications and noted that input cost increases contributed to higher revenue guidance.
Dell now anticipates $74 billion in AI-optimized server sales for the fiscal year, representing 200% growth compared with the prior year, a significant increase from the company’s previous forecast of 103% growth. 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. Following the results, Dell shares rose 9% in extended trading and have gained 236% year to date, substantially outpacing the broader S&P 500 index, which is up 11% over the same period.
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