Dell Technologies Inc (DELL) delivered strong second-quarter results, exceeding analysts’ expectations for both revenue and earnings. The company reported revenue of $25.03 billion, surpassing the consensus estimate of $24.14 billion, according to Benzinga Pro. This represents a 9% year-over-year increase in total revenue.
Dell’s performance was particularly strong in the Infrastructure Solutions Group, which saw revenue climb 38% year-over-year to $11.6 billion. This segment focuses on servers, storage, and networking solutions, areas where Dell has seen increased demand driven by the growth of artificial intelligence (AI).
In fact, AI played a significant role in Dell’s success during the quarter. The company reported $3.2 billion in AI-optimized server demand, a 23% sequential increase. This highlights the growing adoption of AI solutions across enterprise customers.
While the Client Solutions Group, which includes PCs and other consumer devices, experienced a 4% year-over-year decline in revenue to $12.4 billion, the overall positive performance from the Infrastructure Solutions Group helped Dell achieve its overall revenue beat.
Dell’s adjusted earnings also surpassed expectations, reaching $1.89 per share, compared to the anticipated $1.71 per share. The company also generated $1.3 billion in cash flow from operations during the quarter and returned $1 billion to shareholders through share repurchases and dividends.
Looking ahead, Dell did not provide any forward guidance in its earnings release. However, management will discuss the quarterly results further with investors and analysts during a call scheduled for 4:30 p.m. ET.
Dell’s stock price reacted positively to the earnings release, climbing 7.20% in after-hours trading, reaching $118.60 per share at the time of publication. The stock was already up approximately 44% year-to-date before the earnings release.
