Dell Raises Annual Forecasts Amid Booming AI Server Demand

Dell Raises Annual Forecasts on Strong Demand for AI Servers

Dell Technologies Inc. boosted its annual outlook and posted quarterly sales and profit that topped analysts' estimates, building on continued strong demand for artificial intelligence servers that power an expanding fleet of data centers. Earnings, excluding some items, will be about $9.55 a share in the fiscal year ending in January, an increase from a May forecast, Texas-based Dell said Thursday in a statement. The company raised its annual sales projection to about $107 billion from about $103 billion. Analysts, on average, projected profit of $9.43 a share on revenue of $105.2 billion.

Dell lifts annual forecasts on AI server sales boom

Aug 28 (Reuters) - Dell Technologies (DELL.N), opens new tab raised annual revenue and profit forecasts on Thursday, buoyed by demand for its artificial intelligence-optimized servers that are powered by Nvidia's (NVDA.O), opens new tab advanced chips. Rising demand for AI servers, capable of handling computational needs of AI workloads, including training large language models, is benefiting companies such as Dell and Super Micro Computer (SMCI.O), opens new tab. Dell now expects $20 billion in fiscal 2026 revenue from AI server shipments, up from its prior forecast of $15 billion. Its AI servers are used by customers, including Elon Musk's AI startup xAI and CoreWeave (CRWV.O), opens new tab. The company raised its annual revenue forecast to be between $105 billion and $109 billion from its earlier expectations of $101 billion and $105 billion. Dell expects adjusted earnings per share of $9.55, up from its prior projection of $9.40. Third-quarter revenue forecast of $26.5 billion to $27.5 billion was above analysts' average estimate of $26.05 billion, according to data compiled by LSEG. Adjusted profit forecast for the quarter of $2.45 per share was below estimates of $2.55 per share. Revenue for the second quarter came in at $29.78 billion, beating estimates of $29.17 billion. Excluding items, it reported adjusted profit of $2.32 per share, slightly beating estimates of $2.30 per share. Dell's revenue for the infrastructure solutions group, which includes its storage, software and server offerings, rose 44% to $16.80 billion, while the client solutions group - home to PCs - grew 1% to $12.50 billion. A strong PC refresh cycle is expected after Microsoft (MSFT.O), opens new tab ends support for Windows 10 in October, as users seek to maintain security and access to the latest features, boosting demand for PC makers such as Dell and HP. HP beat analysts' estimates for third-quarter revenue on Wednesday, helped by the adoption of AI PCs and the Windows 11 upgrade cycle. Reporting by Jaspreet Singh in Bengaluru; Editing by Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab

Dell beats on profit and revenue as company says AI server sales will double this year

A Dell Technologies sign is seen in Round Rock, Texas, on June 2, 2023.Brandon Bell | Getty Images Dell Technologies reported second fiscal quarter results on Thursday that beat Wall Street expectations for sales and revenue, which the company attributed to strong growth in its AI server business. Dell said that it now plans to ship $20 billion of artificial intelligence servers in its fiscal 2026, double what it sold last year. Dell shares rose in extended trading. Here's how the systems integrator did versus LSEG consensus estimates: Dell raised its full year outlook for revenue to be $107 billion at its midpoint and diluted earnings per share to $9.55 at the midpoint, topping Wall Street estimates of $104.6 billion and $9.38 per share. However, Dell's guidance for third-quarter earnings per share of $2.45 came in short versus LSEG's mark of $2.55, despite Dell's guide for $27 billion in third-quarter revenue topping estimates of $26.1 billion. Dell said that part of the reason its profit forecast is concentrated in the fourth quarter is due to seasonality, particularly in its storage business. For the second quarter, overall revenue rose 19% on an annual basis. That was driven by the company's Servers and Networking revenue, including AI servers, which came in at $12.9 billion, which was up 69% on an annual basis. Dell is one of Nvidia's key customers. Dell buys chips from the AI leader and builds computers around them, which it sells to end-users such as CoreWeave, a cloud service. Dell said it shipped $10 billion in AI servers in its past two quarters. However, the company's storage revenue declined 3% to $3.86 billion and missed a StreetAccount estimate of $4.1 billion in sales. Revenue in the company's client solutions group, which includes PC sales to enterprises, rose 1% on an annual basis to $12.5 billion. While it used to be Dell's largest business group, in recent quarters it has grown much slowly than the company's data center business. Dell said it spent $1.3 billion on share repurchases and dividends during the quarter.

Soft outlook weighs on Dell's stock despite soaring AI server sales - SiliconANGLE

Soft outlook weighs on Dell's stock despite soaring AI server sales Dell Technologies Inc. posted strong second-quarter financial results today, but even though it beat expectations on earnings and revenue, its stock was heading lower on soft guidance for the current quarter. The company reported earnings before certain costs such as stock compensation of $2.32 per share, sneaking past Wall Street's target of $2.30 per share, while revenue jumped 19% to $29.78 billion, ahead of the $29.17 billion estimate. Dell's operating income was up even more, rising 27% from the same period one year earlier to $1.8 billion, while net income rose 32% to $1.164 billion, boosting its overall profitability. The maker of personal computers, data center servers and storage arrays also raised its full-year outlook, saying it's now looking for earnings of $9.55 per share and revenue of $107 billion at the midpoints of its ranges, topping the Street's targets of $9.38 per share and $104.6 billion in revenue. However, Dell's investors were dismayed by a somewhat glum forecast for the current quarter. Dell said it anticipates earnings of $2.45 per share at the midpoint, falling short of the Street's forecast of $2.55 per share. The revenue forecast was better, at least, with Dell guiding for $27 billion, ahead of the analyst's consensus estimate of $26.1 billion. Dell explained that the lower earnings forecast is due to the fact that many of its remaining profits this year will come in the fourth quarter, a result of seasonality, especially in its storage business. But investors could not hide their disappointment, and Dell's stock slid more than 5% in extended trading. Dell's impressive revenue increase in the prior quarter was primarily driven by its Infrastructure Solutions business, which includes sales of servers, storage and networking gear. It generated revenue of $12.9 billion, up 69% from a year earlier. This growth stems from artificial intelligence. Dell is one of Nvidia Corp.'s major customers, buying millions of graphics processing units that are packed into AI servers that it then sells to customers such as Amazon Web Services Inc., Coreweave Inc. and Elon Musk's xAI Corp. Rising demand for AI servers that can handle the enhanced computational needs of AI models has benefited Dell immensely, along with other server makers such as Super Micro Computer Inc. and Hewlett-Packard Enterprise Co. Dell Vice Chairman and Chief Operating Officer Jeff Clarke (pictured) said the company has shipped more than $10 billion worth of AI servers in the first half of fiscal 2025, surpassing the total number it shipped in the whole of the previous year. "This helped deliver another record revenue quarter in our Servers and Networking business, which grew 69%," Clarke said. "Demand for our AI solutions continues to be exceptional, and we're raising our AI server shipment guidance for fiscal 2026 to $20 billion." The growth of AI server sales helped to mask the fact that not all is well in Dell's infrastructure business, as storage revenue declined 3% in the quarter to $3.86 billion, missing the Street's target of $4.1 billion. Dave Vellante, founder and chief analyst of SiliconANGLE Media's sister organization, theCUBE Research said it's almost always the case with Dell that one or two parts of its vast portfolio prosper, while the other segments chug along. "In this case, storage and PCs continued to show softness, but the AI server momentum powered the income statement," he said. "Notably, Dell's gross margins continue to be under pressure but they make it up in AI server volume. And it allows the company to throw off plenty of cash that it mostly returns to shareholders." Revenue from the Client Solutions group, which includes PC sales, inched up just 1% from a year earlier to $12.5 billion. The unit used to be Dell's biggest, but it was surpassed earlier this year by the infrastructure group. PC sales have been held back somewhat by U.S. President Donald Trump's constantly-shifting trade policies, creating uncertainty in the market. However, Dell has reason to be optimistic that PC sales could soon increase, with back-to-school sales now in full swing in the U.S. and Microsoft Corp. set to cut off support for Windows 10 in October. When that happens, Windows 10 PCs will no longer get regular security updates, which should prompt many businesses and consumers to invest in newer devices, potentially giving Dell a boost in the months to come. "Investors are increasingly confident in Dell's ability to deliver what it says it will do, and despite its lower margin profile, its consistent performance, cash generation and conservative cost management make it an attractive way to play the AI trade," Vellante said. During the quarter, Dell hosted its annual customer conference, Dell Technologies World 2025, where it showcased its evolving platform vision for enterprise computing in the era of AI, as well as its latest innovations in server, storage and networking hardware. Dell said it spent more than $1.3 billion on share repurchases and dividends to investors during the quarter. Despite today's after-hours slump, Dell's stock is still up 16% in the year to date, surpassing the broader S&P 500 index, which has gained just over 10% in the same period.

Dell lifts annual forecasts on AI server sales boom - The Economic Times

Rising demand for AI servers, capable of handling computational needs of AI workloads, is benefiting companies such as Dell and Super Micro Computer, but the high cost of producing them and tough competition have pressured margins.Dell raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its artificial intelligence-optimized servers that are powered by Nvidia's advanced chips. Shares fell around 5% in extended trading as Dell's third-quarter profit outlook was below analysts' estimates. Rising demand for AI servers, capable of handling computational needs of AI workloads, is benefiting companies such as Dell and Super Micro Computer, but the high cost of producing them and tough competition have pressured margins. Dell now expects $20 billion in fiscal 2026 revenue from AI server shipments, up from its prior forecast of $15 billion. Its AI servers are used by customers, including Elon Musk's AI startup xAI and CoreWeave. It booked $5.6 billion in AI orders in the second quarter and shipped a record $8.2 billion, leaving an overall backlog of $11.7 billion. The company raised its annual revenue forecast to be between $105 billion and $109 billion from its earlier expectations of $101 billion and $105 billion. Dell expects adjusted earnings per share of $9.55, up from its prior projection of $9.40. Third-quarter revenue forecast of $26.5 billion to $27.5 billion was above analysts' average estimate of $26.05 billion, according to data compiled by LSEG. Adjusted profit forecast for the quarter of $2.45 per share was below estimates of $2.55 per share. Revenue for the second quarter came in at $29.78 billion, beating estimates of $29.17 billion. Excluding items, it reported adjusted profit of $2.32 per share, slightly beating estimates of $2.30 per share. Adjusted gross margin rate fell to 18.7% from a year earlier and missed estimates of 19.6%. Dell's revenue for the infrastructure solutions group, which includes its storage, software and server offerings, rose 44%, while the client solutions group - home to PCs - grew 1%. A strong PC refresh cycle is expected after Microsoft ends support for Windows 10 in October. About half of PCs in use still run Windows 10, with many unable to upgrade and likely needing replacement, said Ben Yeh, principal analyst, PC research at Omdia.

Dell Q2 Earnings: Revenue, EPS Beat Estimates As AI Solutions Shipments Boom - Dell Technologies (NYSE:DELL)

Dell Technologies Inc DELL reported second-quarter financial results after the market close on Thursday. Here's a look at the key highlights from the quarter. Get the latest updates on DELL here. Q2 Highlights: Dell reported second-quarter revenue of $29.78 billion, beating the consensus estimate of $29.17 billion, according to Benzinga Pro. The company reported second-quarter adjusted earnings of $2.32 per share, beating analyst estimates of $2.31 per share. Total revenue was up 19% on a year-over-year basis. Here's a breakdown of revenue by category. Servers and Networking: $12.9 billion, up 69% year-over-year Storage: $3.9 billion, down 3% year-over-year Commercial Client: $10.8 billion, up 2% year-over-year Consumer: $1.7 billion, down 7% year-over-year Cash flow from operations was $2.5 billion in the second quarter. Dell said it returned $1.3 billion to shareholders via share repurchases and dividends in the quarter. The company ended the period with approximately $8.15 billion in cash and cash equivalents. "We've now shipped $10 billion of AI solutions in the first half of FY26, surpassing all shipments in FY25. This helped deliver another record revenue quarter in our Servers and Networking business, which grew 69%," said Jeff Clarke, vice chairman and COO of Dell. "Demand for our AI solutions continues to be exceptional, and we're raising our AI server shipment guidance for FY26." What's Next: Dell expects third-quarter revenue to be between $26.5 billion and $27.5 billion versus estimates of $26.05 billion. The company anticipates third-quarter adjusted earnings of $2.45 per share versus estimates of $2.55 per share. Dell raised its fiscal year 2026 revenue guidance from a range of $101 billion to $105 billion to a new range of $105 billion to $109 billion versus estimates of $104.59 billion. The company also raised its full-year adjusted earnings guidance from $9.40 to $9.55 per share versus estimates of $9.38 per share. Dell executives will further discuss the quarter on an earnings call with investors and analysts at 4:30 p.m. ET. DELL Price Action: Dell shares were down 4.10% in after-hours, trading at $128.50 at the time of publication on Thursday, according to Benzinga Pro. Read Next: Nvidia Q2 Guidance Shows Demand Outstrips Supply For 'New Oil And Gold Of AI Revolution' Photo: mrinalpal/Shutterstock.com DELLDell Technologies Inc$127.89-3.48%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum73.61Growth90.39QualityN/AValue34.93Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Dell Revenue Jumps 19% in Fiscal Q2 | The Motley Fool

Dell Technologies (DELL 1.70%), a global leader in IT infrastructure and personal computing solutions, reported financial results for Q2 FY2026 on August 28, 2025. The company announced record GAAP revenue of $29.8 billion, up 19%, outpacing analyst estimates (non-GAAP) and the company's own prior midpoint guidance of $29.0 billion. Non-GAAP earnings per share rose to $2.32, a 19% increase over the same period last year and above the prior guidance range. The standout was the company's Infrastructure Solutions Group, where sharp growth in AI-optimized servers set new records. Despite margin pressures, Dell raised its full-year outlook, signaling confidence in continued momentum fueled by AI demand. Dell Technologies is a global provider of technology solutions focused on IT infrastructure, servers, enterprise storage, and personal computers. Its two major operating segments are the Infrastructure Solutions Group (ISG), which covers servers, storage, and networking, and the Client Solutions Group (CSG), which includes commercial and consumer PCs plus related services. The company's recent strategy emphasizes the fast-growing fields of artificial intelligence (AI) infrastructure, hybrid cloud deployments, and new as-a-Service models for buying technology. Key factors critical to Dell's ongoing success are its scale, global reach in over 170 countries, ongoing investment in research and development, flexible payment solutions, and a broad portfolio that provides both recurring and transactional revenue streams. The second quarter showed a shift in Dell's business mix, with the ISG segment delivering record revenue due to demand for AI servers. Revenue in ISG (GAAP) reached $16.8 billion, a 44% rise from the prior year, sharply accelerating from recent quarters. Servers and Networking sales, which make up the bulk of ISG, climbed 69% as customers continued building AI-enabled data centers. Management reported $10 billion in AI solution shipments in the first half of FY2026, already surpassing the full prior year. AI-driven growth did not fully carry over into all areas. Storage business revenue fell 3% to $3.9 billion (GAAP), reversing its recent streak of quarterly gains. The company has pointed to the "attach" opportunity -- selling storage alongside big AI infrastructure deals -- but this connection has not yet delivered higher storage sales. Operating margins in ISG also dropped from 11.0% to 8.8%. Client Solutions Group results were mixed. CSG revenue edged up just 1% to $12.5 billion (GAAP). Commercial PC revenue rose 2%, while consumer PC revenue declined 7%. causing operating margins in CSG to compress from 6.6% to 6.4% compared to Q2 FY2025. The company generated robust adjusted free cash flow of $2.5 billion, up 96% from the prior year, and returned $1.3 billion to shareholders through buybacks and dividends. Gross margin, the portion of revenue left after direct costs, increased in total dollars but declined as a percentage of sales, reflecting a greater share of lower-margin AI hardware and weaker pricing in legacy businesses. Looking ahead, management raised the full-year FY2026 revenue forecast to between $105.0 and $109.0 billion, with a midpoint that is $4.0 billion higher than its previous full-year revenue guidance midpoint. The midpoint for non-GAAP earnings per share is now $9.55, up from the prior guidance of $9.40 non-GAAP. For Q3 FY2026, revenue is expected to be $26.5-$27.5 billion, and non-GAAP EPS is projected at $2.45. Dell also increased its full-year AI server shipment target to $20 billion, up from $15 billion after seeing outsized demand through the first half of the year. Investors should monitor a few important dynamics as Dell's business mix evolves. Rapid growth in AI servers is fueling revenue gains, but also compressing margins for now. The company's ability to realize more storage and recurring services sales from its AI customer base will be important for long-term profitability. The continued slide in consumer PC demand and the pace of further commercial PC upgrades are also critical trends to watch, as is the durability of the current wave of AI infrastructure spending. No change was disclosed during the period.

Dell lifts annual forecasts on AI server sales boom

(Reuters) -Dell Technologies raised annual revenue and profit forecasts on Thursday, buoyed by demand for its artificial intelligence-optimized servers that are powered by Nvidia's advanced chips. Shares fell more than 4% in extended trading as Dell's third-quarter profit outlook was below analysts' estimates. Rising demand for AI servers, capable of handling computational needs of AI workloads, is benefiting companies such as Dell and Super Micro Computer, but the high cost of producing them and tough competition have pressured margins. Dell now expects $20 billion in fiscal 2026 revenue from AI server shipments, up from its prior forecast of $15 billion. Its AI servers are used by customers, including Elon Musk's AI startup xAI and CoreWeave. The company raised its annual revenue forecast to be between $105 billion and $109 billion from its earlier expectations of $101 billion and $105 billion. Dell expects adjusted earnings per share of $9.55, up from its prior projection of $9.40. Third-quarter revenue forecast of $26.5 billion to $27.5 billion was above analysts' average estimate of $26.05 billion, according to data compiled by LSEG. Adjusted profit forecast for the quarter of $2.45 per share was below estimates of $2.55 per share. Revenue for the second quarter came in at $29.78 billion, beating estimates of $29.17 billion. Excluding items, it reported adjusted profit of $2.32 per share, slightly beating estimates of $2.30 per share. Dell's revenue for the infrastructure solutions group, which includes its storage, software and server offerings, rose 44% to $16.80 billion, while the client solutions group - home to PCs - grew 1% to $12.50 billion. A strong PC refresh cycle is expected after Microsoft ends support for Windows 10 in October, as users seek to maintain security and access to the latest features, boosting demand for PC makers such as Dell and HP. HP beat analysts' estimates for third-quarter revenue on Wednesday, helped by the adoption of AI PCs and the Windows 11 upgrade cycle. (Reporting by Jaspreet Singh in Bengaluru; Editing by Vijay Kishore)