Overview
- Dell reported a blowout fiscal second quarter, posting $7.04 in adjusted EPS and roughly $47 billion in revenue that beat Wall Street estimates.
- The company said AI-optimized servers generated $16.4 billion of revenue in the quarter and raised full-year guidance to $25.50 adjusted EPS on $192 billion in revenue.
- Dell disclosed very large commercial and government deals, including a $9.7 billion U.S. military software contract and a $1.6 billion hardware order from cloud provider Iren.
- Management reported record AI server bookings and a sizable backlog, with the company saying it booked $60.9 billion in AI orders and exited the period with a $95 billion AI backlog.
- Investors rewarded the results with about a 10% after-hours stock jump, but analysts note the key risk is how quickly the lumpy backlog of orders will convert into installed systems and recurring services.