Dell Technologies Reports Strong Earnings and Raises Guidance Amid AI Growth
Dell Technologies reported better-than-expected earnings, with adjusted EPS of $7.04 per share compared to the expected $4.90. Revenue surged by 58% year-over-year to $46.97 billion, driven largely by strong demand for AI servers and a growing backlog in orders. The company raised its full-year revenue guidance from $167 billion to approximately $192 billion and adjusted earnings per share from $17.90 to around $25.50. The AI server segment saw significant growth, with sales doubling year-over-year to $16.4 billion and a record backlog of $95 billion in orders. Dell's stock jumped over 10% after hours following the report despite closing down nearly 7% during regular trading on Tuesday. Investors are now watching for further details from management regarding supply chain constraints, particularly around memory costs, which had previously limited margins.
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