Key Highlights

  • Shares are trading at $459.03 in pre-market activity, up 8.09% from Tuesday's close of $425.00.
  • Fiscal second-quarter Revenue reached a record $47 billion, up 58% year over year, with record non-GAAP EPS of $7.04, up 203% year over year.
  • The Infrastructure Solutions Group posted record revenue of $31.8 billion, up 89%, with AI server orders of $60.9 billion in the quarter and a record AI server Backlog of $95 billion.
  • The company raised full-year guidance for the second consecutive quarter to approximately $192 billion in revenue and $25.50 in adjusted EPS.
  • Deutsche Bank initiated coverage with a Hold rating and a $480 price target, while Bank of America raised its target to $505.

Record AI Server Demand Drives the Rally

Dell Technologies (NYSE:DELL) shares surged in pre-market trading after the company reported record fiscal second-quarter revenue of $47 billion, up 58% year over year, with record non-GAAP Earnings Per Share of $7.04, up 203% year over year. Dell is a Round Rock, Texas-based technology company that designs, manufactures, and supports IT infrastructure and personal computing products through its Infrastructure Solutions Group and Client Solutions Group segments.

The Infrastructure Solutions Group posted record revenue of $31.8 billion, up 89%, driven by AI server orders of $60.9 billion in the quarter and a record AI server backlog of $95 billion, with traditional server revenue up 122% and storage revenue up 26%.

Client Solutions and Capital Returns Also Strengthen

The Client Solutions Group grew revenue 20% to $15 billion, with commercial revenue up 22% for an eighth consecutive quarter of growth and consumer revenue up 7%. The company returned a record $4.3 billion to shareholders through Buybacks and dividends, generated adjusted free Cash Flow of $8.1 billion, and ended the quarter with $14.2 billion in cash and investments.

Guidance Raised for the Second Straight Quarter

Management raised full-year guidance for the second consecutive quarter, with revenue now expected at approximately $192 billion at the midpoint, up roughly 70% year over year, and diluted non-GAAP EPS of $25.50, up about 150%. Infrastructure Solutions Group growth is guided at approximately 120%, with AI server revenue expected to nearly triple year over year to $74 billion. Deutsche Bank initiated coverage with a Hold rating and a $480 price target, while Bank of America raised its target to $505.

Outlook: AI Server Backlog Sets Up Future Quarters

Dell shares are rallying as the company's AI server backlog provides substantial visibility into future revenue, even as some analysts remain neutral pending further evidence of sustained Margin expansion. Execution against the raised full-year guidance and continued AI server order momentum will likely be the key drivers for the stock ahead.