Dell Exceeds Wall Street Expectations with 80% Surge in Server Sales

Dell Surpasses Expectations with an 80% Surge in Server Sales, Driven by AI Growth"

Dell Exceeds Wall Street Expectations with 80% Surge in Server Sales, Boosting Stock by Over 5% in After-Hours Trading
On Thursday, Dell reported its fiscal second-quarter results, surpassing Wall Street estimates, driven by an impressive 80% increase in server sales. The company's stock jumped more than 5% in extended trading.
Here’s a breakdown of Dell's performance compared to LSEG consensus estimates:
• Revenue: $25.06 billion vs. $24.53 billion expected
• EPS: $1.89 adjusted vs. $1.71 expected
Net income surged 85% to $841 million, or $1.17 per share, compared to $455 million, or 63 cents per share, in the same period last year. Revenue grew approximately 9% from $22.93 billion a year ago.
Dell typically provides a forecast during its analyst call. Earlier this year, the company projected full-year revenue between $93.5 billion and $97.5 billion, up from $88.4 billion the previous year.
As a leading vendor of servers designed to handle artificial intelligence (AI) workloads, Dell has seen soaring demand, particularly for systems based on Nvidia chips. Nvidia CEO Jensen Huang previously highlighted Dell founder Michael Dell as a key contact for orders of systems with the company’s latest chips.