Dell’s net profit soars 85% amid AI boom

This week, Dell reported its fiscal quarter results, which continues to be a major player in both the server systems market and the PC segment. The company’s total revenue grew by 9% to $25.06 billion and exceeded market expectations, and in the server segment it consistently increased by 82% to $3.2 billion. To be more precise, Dell earned this amount from the sale of servers for artificial intelligence systems.

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Dell’s earnings per share were also higher than investors’ expectations: $1.89 versus $1.71. The company’s net income increased by 85% to $841 million. Dell slightly improved its forecast for annual revenue to a range from $95.5 billion to $98.5 billion. Last year, it earned $88.4 billion, so the revenue dynamics promises to be pleasant for investors . For the current quarter, Dell expects revenue of $24 billion to $25 billion, which is roughly in line with market expectations.

This company was among the largest suppliers of server equipment for artificial intelligence systems, as reported by CNBC, so compared to the same quarter last year, its revenue in the last reporting period increased immediately from $1.7 billion to $3.2 billion in sequential comparison. After the close of trading on the eve of the publication of the quarterly report, Dell shares rose in price by 3%, in total they have risen by 48% since the beginning of the year.

In general, the infrastructure division, which supplies server equipment, increased its revenue by 38% to $11.65 billion and exceeded market expectations. Server equipment and telecommunications solutions brought Dell $7.76 billion in the last quarter, revenue in this area increased year-on-year by 80%. In other words, in the server segment as a whole, Dell generates just under half one-third of its revenue. But at the end of the quarter, only $3.2 billion in revenue related to AI systems. The company already has orders for AI servers totaling $3.8 billion that are yet to be fulfilled. However, not everything is so rosy in the server business as a whole, since in the area of ​​data storage systems, Dell’s revenue decreased by 4% to $4 billion.

The client line of business brought the company only $12.41 billion in revenue at the end of the last quarter, which is 4% less than last year’s result. In the corporate segment, PC sales brought Dell stability compared to last year (at $10.55 billion), but in the consumer segment, revenue decreased by 22% to $1.86 billion.