Dell Technologies announced financial results for its fiscal 2025 second quarter, ending August 2, 2024. The company reported revenue of $25.03 billion, up 9% from the same quarter last fiscal year and exceeding the $24.53 billion consensus estimate of analysts surveyed by LSEG.
Net income increased 85% to $841 million from $455 million a year earlier. Earnings per share increased 86% from $0.63 to $1.17. Adjusted net income (Non-GAAP) per share increased 9% from $1.74 to $1.89, compared to the consensus estimate of $1.71.
The biggest revenue growth came from the Infrastructure Solutions Group (ISG) division, which makes servers, storage systems and other equipment for data centers, which brought in revenue of $11.65 billion, exceeding the figure for the previous year by 38%, as well as the forecast of Wall Street analysts of $10.44 billion.
At the same time, the Servers and Networking segment, responsible for the supply of AI servers based on NVIDIA and AMD accelerators, as well as traditional servers, increased sales year-on-year by 80% – from $4.27 to $7.67 billion. Dell said that $3.1 billion of this amount came from sales of AI platforms, sales of which in the previous quarter amounted to $1.7 billion. According to Dell Chief Operating Officer Jeff Clarke, the company has a growing backlog of orders for AI servers to be fulfilled. Their volume currently amounts to about $3.8 billion.
Image source: Dell
Dell’s financial results were announced just hours after a report from U.S. investment research firm Hindenburg Research LLC found that Dell was increasingly poaching customers from server rivals such as Supermicro Computer Inc.
“Tesla has been buying its servers exclusively from Supermicro,” Hindenburg’s report states. “But recent reports in May 2024 and tweets from Elon Musk indicate that Dell has now won major contracts with Tesla and xAI, undermining Supermicro’s exclusivity.” The report also cites a post by Dell founder Michael Dell himself on social media platform X about helping Musk’s firm train and support its popular Grok chatbot.
SiliconANGLE noted that Dell benefited from a statement made by NVIDIA CEO Jensen Huang earlier this year, when he said that if you were going to buy server systems containing his company’s most powerful chips, you’d be better off talking to Michael Dell.
At the same time, sales of storage systems of the ISG division fell by 5% to $3.97 billion. Also, a drop in revenue of the Dell Client Solutions Group, which specializes in personal computers and laptops, was recorded by 4% to $12.41 billion.
For the current quarter, Dell forecast revenue in the range of $24 billion to $25 billion, close to the $24.6 billion StreetAccount analysts were expecting. The company also revised its full-year 2025 revenue guidance to between $95.5 billion and $98.5 billion, up from $93.5 billion to $97.5 billion previously. However, the midpoint is still below Wall Street’s estimate of $96.34 billion.
Dell shares rose 3% after the quarterly results were announced. Prior to the announcement, they had gained 48% year-to-date, after falling 34% since the company’s previous quarterly report.
If you notice an error, select it with your mouse and press CTRL+ENTER. | Can you write better? We always welcome new authors.
Source:
Source: 3dnews.ru
