Dell Shares Climb On Q2 Results, Positive Outlook

(RTTNews) - Shares of Dell Technologies Inc. were gaining around 9 percent in the pre-market activity on the NYSE after the tech major issued positive third-quarter outlook and raisesd fiscal 2027 view, after reporting strong growth in its second quarter.

The company said its AI server business booked a record $60.9 billion in orders, recognized $16.4 billion in revenue and exited the quarter with a record $95 billion backlog.

David Kennedy, chief financial officer, Dell, stated, "Our advantages reinforce one another, and throughout the quarter we used these strengths to drive growth, share gains, profitability and cash generation. With AI momentum accelerating and our opportunity expanding across the portfolio, we're raising our full-year FY27 revenue outlook by $25 billion..."

Looking ahead for the third quarter, the company projects earnings per share to grow 168 percent year-over-year to $6.10, and adjusted earnings per share to grow 151 percent to $6.50. Revenue for the next quarter is expected to climb 81 percent from last year to $49.0 billion.

Further, for fiscal 2027, earnings per share are now expected to be $24.37, up 181 percent year-over-year, and compared to previous outlook of $17.31.

The firm now projects adjusted earnings per share to grow 148 percent from last year to $25.50, and higher than previous estimate of $17.90.

Revenue for the year would be $192.0 billion, up 69 percent year-over- year, while previous view was $167 billion.

AI-Optimized Servers revenue is now projected to be $74 billion, up from earlier expected $60.0 billion. The new outlook represents a growth of 200 percent from last year.

In the second quarter, the company's earnings totaled $4.133 billion, up 255 percent from $1.164 billion a year ago. Earnings per share surged 273 percent to $6.34 from $1.70 last year.

Adjusted earnings were $4.591 billion or $7.04 per share for the period, compared to $1.591 billion or $2.32 per share a year ago.

The company's revenue for the period rose 57.7 percent to $46.971 billion from $29.776 billion last year.

Infrastructure Solutions Group revenues climbed 89 percent from last year to $31.78 billion. AI-Optimized Servers' revenues doubled to $16.401 billion. Traditional Servers and Networking revenues grew 122 percent, and the growth was 26 percent for storage.

Client solutions revenues grew 20 percent year-over-year to $15.03 billion.

Additionally, Dell's board of directors declared a quarterly cash dividend of $0.63 per share, which will be payable on October 30 to shareholders of record as of October 20.

In the pre-market activity on the NYSE, the shares were trading 9.25 percent higher at $463.62, after closing Tuesday's trading 6.80 percent down.

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