Dell surges 9% after lifting fiscal 2027 forecast on AI server strength
Dell sees AI server revenue tripling in fiscal 2027. Six months ago, it was looking for the number to double.
TL;DR
- Dell Technologies' shares rose 9% in extended trading after reporting strong earnings and an optimistic forecast.
- The company's second-quarter earnings per share ($7.04) and revenue ($46.97 billion) exceeded analyst expectations.
- Revenue grew 58% year over year, with net income rising significantly compared to the previous year.
- Dell raised its third-quarter and full-year forecasts, anticipating substantial adjusted earnings per share and revenue.
- AI-optimized server revenue reached $16.40 billion in the fiscal second quarter, contributing to an 89% increase in the Infrastructure Solutions Group.
- The company now projects $74 billion in AI-optimized server sales for the fiscal year, a significant increase from previous predictions.
- Dell secured a $9.7 billion contract with the U.S. military and an agreement with Iren for $1.6 billion in hardware.
- The Client Solutions Group (PCs and accessories) revenue increased 20% but was slightly below consensus, as Dell shifted focus to infrastructure.