With its projection for the current quarter, Dell Technologies Inc. easily exceeded expectations, demonstrating both a growing backlog and strong demand for the company’s artificial intelligence products.
While FactSet-tracked analysts were only anticipating $25.3 billion in revenue for the fiscal second quarter, the manufacturer of personal computers, servers, and other hardware items anticipates $28.5 billion to $29.5 billion.
The optimistic prediction can be explained by Dell’s (DELL) enormous AI backlog. In the most recent quarter, the company generated $12.1 billion in AI orders, contributing to its $14.4 billion backlog. In the current quarter, Dell anticipates shipping almost $7 billion worth of AI servers.
For comparison, Dell shipped just $3.1 billion worth of AI servers in a previous record quarter.
The stock concluded Thursday’s extended session up roughly 2% following an earlier jump.
In a statement, Jeff Clarke, the Chief Operating Officer, praised the “unprecedented demand for our AI-optimized servers.”
Additionally, Dell exceeded Wall Street’s estimates for adjusted earnings per share in the fiscal second quarter. In contrast to the $2.11 consensus estimate, the business projects $2.25 in adjusted EPS at the midpoint.
For the entire fiscal year, management is predicting revenue of between $101 billion and $105 billion, which is the same as it was three months ago. The company has raised its full-year adjusted EPS outlook from $9.30 to $9.40.
Clarke stated, “AI momentum continues to remain strong,” in prepared remarks that were uploaded on Dell’s investor website. “That said, given the scale of these opportunities, variability in timing, and choices around technology, the inherent nonlinear nature of demand and associated shipments is likely to persist.”
With $23.4 billion in revenue for the current quarter, Dell reported some revenue upside over the $23.2 billion consensus estimate.
