Dell's Q1 2025 Revenue

Dell The company reported first-quarter earnings on Thursday, beating analysts' expectations for profit and revenue and catapulting itself into the top AI server vendors.

The stock fell about 12% in after-hours trading before recovering. When the company reported earnings in February, earnings per share beat expectations by a wide margin. Dell's revenue for the quarter was in line with Wall Street expectations.

Here's how Dell's performance compares to LSEG's consensus estimates:

• Per shareAdjusted earnings: $1.27 (expected: $1.26)
• Revenue: $22.24 billion (estimated $21.64 billion)

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. The company expects full-year sales 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 businesses invest in predictive and generative AI infrastructure. NVIDIA At the conference, CEO Jensen Huang named Dell founder Michael Dell as the person to contact for orders for 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.

This story is unfolding.