Here's how Dell performed compared to LSEG's consensus estimates:
- Earnings per ShareAdjusted: $1.27 (expected: $1.26)
- Revenue: $22.24 billion vs. $21.64 billion (estimated)
The company said it expects current-quarter earnings per share of $1.65 on revenue of $23.5 billion to $24.5 billion. Analysts surveyed by FactSet were expecting $23.35 billion. Dell expects full-year revenue of $93.5 billion to $97.5 billion.
Dell reported quarterly net income of $955 million, or $1.32 per diluted share, compared with $578 million, or 79 cents a share, in the same period last year. Overall quarterly revenue was up 6% year over year.
Dell's data center sales division, Infrastructure Solutions Group, saw revenue grow 22% year over year to $9.2 billion. The company said its server division is growing fast, with revenue up 42% to $5.5 billion, and cited strong demand for AI servers.
Dell has emerged as a top vendor of AI-oriented servers, which are in high demand as companies invest in predictive and generative AI infrastructure. Earlier this year, Nvidia CEO Jensen Huang named Dell founder Michael Dell at a conference as the person to contact for ordering the company's new chips.
Dell announced that it booked $2.6 billion in “AI-optimized” server orders during the quarter.
Prior to Thursday's report, Dell's shares were expected to more than double in 2024.
Dell's PC and laptop division, the Client Solutions Group, saw flat growth on an annual basis with sales of $12 billion.
