Dell Technologies (DELL) delivered a strong second-quarter performance and raised its full-year guidance as demand for AI infrastructure continues to surge. The technology company reported record revenue of $29.8 billion, up 19% year over year. Also, it surpassed Street’s expectations of $29.02 billion. Further, the company saw a 19% increase in adjusted EPS to $2.32, which beat the consensus estimate of $2.29. Despite upbeat results, DELL stock declined about 4% in the after-hours trading.
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“We achieved strong top-line results and profitability,” said CFO Yvonne McGill. “Our cash generation remains robust, and we’re continuing to deliver value to shareholders,” she added.
AI Drives Revenue Growth
Dell’s Infrastructure Solutions Group (ISG) segment was the star performer, fueled by booming demand for AI servers. ISG revenue rose 44% to $16.8 billion, with servers and networking revenue surging 69% to $12.9 billion. However, storage revenue dipped 3% to $3.9 billion.
It must be noted that Dell shipped $10 billion worth of AI solutions in the first half of Fiscal 2026, already surpassing its total for all of Fiscal 2025. As a result, the company raised its full-year AI server shipment target to $20 billion.
Meanwhile, Dell’s Client Solutions Group (CSG) unit, which includes PCs and commercial devices, reported $12.5 billion in sales, up 1%. Revenue from commercial clients rose 2%, while that from consumer clients fell 7%.
Full-Year and Q3 Guidance
After an upbeat Q2 report, Dell now expects Fiscal 2026 revenue between $105 billion and $109 billion, with a midpoint of $107 billion, representing 12% growth. Full-year adjusted EPS is projected at $9.55.
For the third quarter, Dell forecasts revenue between $26.5 billion and $27.5 billion, and adjusted EPS of $2.45 at the midpoint, reflecting continued momentum in AI and enterprise infrastructure. The analysts’ expectations currently stand at $26.31 billion in revenues and $2.55 in adjusted EPS.
Is DELL a Good Stock to Buy Now?
Turning to Wall Street, DELL stock has a Moderate Buy consensus rating based on 11 Buys and four Holds assigned in the last three months. At $144.79, the average Dell stock price target implies an 8.01% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
