This week, Dell announced its fiscal quarter results, showcasing impressive growth and a strong performance in the server market. The tech giant’s total revenue surged 9% to $25.06 billion, surpassing market expectations. A standout highlight was the server segment, which saw a remarkable 82% increase, bringing in $3.2 billion.
Earnings per share also exceeded forecasts, reaching $1.89 compared to the anticipated $1.71. Dell’s net profit soared by 85% to $841 million, prompting the company to slightly upgrade its annual revenue forecast to between $95.5 billion and $98.5 billion. This is a notable increase from last year’s $88.4 billion. For the current quarter, Dell anticipates earnings between $24 billion and $25 billion, aligning with market expectations.
Dell has solidified its position as a key player in the AI server market, with its revenue from server equipment nearly doubling from $1.7 billion to $3.2 billion year-over-year. The company’s stock rose 3% after the report’s release, and has climbed 48% since the beginning of the year.
The infrastructure division, responsible for server and telecommunications solutions, saw a 38% revenue increase to $11.65 billion, surpassing market predictions. Despite this, Dell’s data storage revenue fell 4% to $4 billion. AI servers alone contributed $3.2 billion, with $3.8 billion in future orders pending fulfillment.
On the PC front, revenue from client business totaled $12.41 billion, a 4% drop from the previous year. The enterprise PC segment remained stable at $10.55 billion, while consumer PC revenue fell 22% to $1.86 billion.
Overall, Dell’s financial performance highlights its success in the AI server sector while facing challenges in the consumer PC market.
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