BackDell Technologies Q2 revenue beats estimates; raises full-year forecasts on AI boost
For the full year, Dell Technologies now expects revenue between $89.5 billion and $91.5 billion, and earnings per share of $6.30, plus or minus 20 cents.
PremiumDell Technologies shares rallied 8% in extended trading on Thursday after the company raised its full-year revenue and profit forecast.
The company forecast third-quarter revenue between $22.5 billion and $23.5 billion beating analysts’ estimates of $21.67 billion, according to Refinitiv data. Dell expects earnings per share of $1.45, plus or minus 10 cents compared with estimates of $1.38, Reuters reported.
For the full year, Dell Technologies now expects revenue between $89.5 billion and $91.5 billion, and earnings per share of $6.30, plus or minus 20 cents, the report added.
Dell’s second quarter revenue and EPS beat analyst estimates.
The company’s servers and networking revenue during the second quarter rose 11% QoQ to $4.27 billion, driven by higher demand for AI-optimized servers.
Revenue at the company's client solutions group (CSG) - home to its consumer and enterprise PC business - increased 8% from the first quarter to $12.94 billion.
Also Read: OpenAI goes for Microsoft’s pie with enterprise offering
The improved outlook comes as the company benefited from the artificial intelligence (AI) boom and stabilizing demand for computer hardware and server products.
The company is expected to see a demand boost for its PowerEdge servers and generative AI designs with Nvidia from rising investments in AI by Big Tech companies.
“AI is already showing it's a long-term tailwind, with continued demand growth across our portfolio," Chief Operating Officer Jeff Clarke said.
(With inputs from Reuters)
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
