Dell Technologies Inc. (NYSE: Dell) reported better-than-anticipated fiscal 2025 second-quarter results, aided by an 80% surge in server sales. The hardware products provider also upwardly revised its FY 2025 revenue outlook. The company also issued a slightly positive Q3 revenue guidance. The stock of Dell ended Thursday’s trading session at $110.74, almost flat from the previous close.
The Round Rock, Texas-based Company reported second-quarter revenues of $25.03 billion, a rise of 9% from $22.93 billion in the related quarter of fiscal 2024.
For the second quarter, which ended on August 3, 2024, Dell reported a net income of $841 million, equivalent to $1.17 per share, up from $455 million, or $0.63 per share, in the quarter that ended on August 4, 2023.
Excluding charges, the company posted 2Q 2025 non-GAAP net income of $1.37 billion, or $1.89 per share, compared with $1.28 billion, or $1.74 per share, in 2Q 2024.
Analysts polled by LSEG expected Dell to announce earnings of $1.71 per share and revenues of $24.53 billion.
Segment wise:
- Infrastructure Solutions Group (ISG) revenues surged 38% y-o-y to $11.65 billion, surpassing StreetAccount forecasts of $10.44 billion. Specifically, servers and networking revenue jumped 80% to $7.67 billion, exceeding StreetAccount projections of $6.37 billion. This includes $3.10 billion from AI server sales, an increase from $1.70 billion in the previous quarter. However, Dell’s storage revenues were $3.97 billion, a decrease of 5% from last year.
- Client Solutions Group revenues fell by 4% y-o-y to $12.41 billion. Specifically, consumer sales declined 22% y-o-y to $1.86 billion. Commercial sales were $10.56 billion, almost flat from last year.
Looking ahead, Dell projects Q3 revenues in the range of $24 billion to $25 billion. StreetAccount estimates call for $24.60 billion.
The company similarly upwardly revised its FY 2025 revenue guidance to a range of between $95.50 billion and $98.50 billion, from $93.50 billion to $97.50 billion issued earlier. In FY 2024, Dell had posted revenues of $88.40 billion.
Dell revealed that it gave back $1 billion to investors in the second quarter in the form of dividends and share repurchases.
The quarterly earnings beat and upward revision of FY 2025 revenue guidance are expected to keep the stock of Dell slightly bullish in the near term.
The historical price chart indicates that the stock of Dell is consolidating above the support level of $105. The next resistance is anticipated to be only near $135. Additionally, the MACD indicator is showing a positive reading. Therefore, we anticipate Dell’s stock will remain uptrend for the next few trading sessions. It would be prudent to open a position after the stock closes above its 50-day moving average.
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