Dell

Dell Technologies Inc. (NYSE:DELL) Q2 2025 Earnings Conference Call August 29, 2024 4:30 PM ET Company Participants Rob Williams – Head, IR Jeff Clarke – Vice Chairman and COO Yvonne McGill – CFO Tyler Johnson – Senior VP and Treasurer Conference Call Participants Amit Daryanani – Evercore Ben Reitzes – Melius Research Erik Woodring – Morgan Stanley Toni Sacconaghi – Bernstein Asiya Merchant – Citi Samik Chatterjee – JPMorgan Michael Ng – Goldman Sachs Wamsi Mohan – Bank of America Aaron Rakers – Wells Fargo David Vogt – UBS Simon Leopold – Raymond James Steven Fox – Fox Advisors Operator Good afternoon, and welcome to the Fiscal Year 2025 Second Quarter Financial Results Conference Call for Dell Technologies, Inc. I’d like to inform all participants this call is being recorded at the request of Dell Technologies. This broadcast is the copyrighted property of Dell Technologies, Inc. Any rebroadcasting of this […]

The following is a summary of the Dell Technologies Inc. (DELL) Q2 2025 Earnings Call Transcript: Financial Performance: Dell reported Q2 2025 revenue of $25 billion, up 9% year-over-year, with diluted EPS of $1.89, also up 9%. Gross margin was reported at $5.5 billion, or 21.8% of total revenue, facing a decrease due to a rise in AI optimized server mix and increased competition. Operating income increased by 3% to $2 billion or 8.1% of revenue, benefiting from higher revenues and reduced operating expenses, partially offset by a lower gross margin rate. Net income rose by 7% to $1.37 billion. Business Progress: Dell’s AI server orders and shipments increased, emphasizing accelerated AI momentum, with a total backlog of $3.8 billion at the end of the quarter. The company expanded its engineering capabilities, including data center networking design, to support ongoing AI developments. Dell highlighted the optimization of sales coverage to

By Emily Bary Shipments of AI servers more than doubled sequentially to $1.7 billion Dell Technologies Inc. blazed past expectations for its latest quarter as it continued to benefit from explosive artificial-intelligence demand, but analysts keyed in on the margin impact of that growth. Management shared an expectation for Dell’s (DELL) gross-margin rate to decline roughly 150 basis points in fiscal 2025, due to “inflationary input cost, the competitive environment and a higher mix of AI optimized servers.” Overall operating income declined 14% to $920 million in the latest quarter, while operating income within infrastructure solutions slipped 1% to $736 million despite the big rise in revenue for that segment, which houses the server business. The stock extended its pullback from record highs, dropping 13.1% in Thursday’s after-hours session despite upbeat revenue guidance for the fiscal second quarter as well. The stock had dropped 5.2% during the regular session, to

Dell’s AI-oriented servers, which are providing a boost to sales, come at a cost for margins. CFO Yvonne McGill says on a call with analysts that a higher mix of AI-optimized servers will likely weigh on margins for the year, and the company expects the gross margin rate to decline about 150 basis points. Inflationary input cost and competition are also factors in the gross margin shift. Gross margin declined 250 basis points in 1Q as the company faced steep competition on prices and higher AI server mix. Shares fall 18% to $139.65 post-market.

Dell Technologies is cutting prices in the face of steep competition across multiple product lines. The company notes that competition was a pressure on margins in 1Q. CEO Michael Dell says that the downcycle in personal computers has made for strong competition, with major promotions from the holiday season continuing into 1Q. He also notes that in AI servers, where sales are booming, the company is not the price leader–and those offerings tend to come with lower margins. “We’re not the one running the price down,” he says. “We are again getting a premium for the value that we’ve generated or created in our products.” Dell shares fall 19% post-market.

Dell Technologies (DELL) remains “the best way to play” prospects for artificial-server momentum, storage demand and an improving personal-computer market, boosting prospects for fiscal 2025 and 2026, Morgan Stanley said Wednesday in a report. Morgan Stanley raised its price target on Dell to $152 from $128 and maintained an overweight rating on the stock. Dell shares jumped 9.5% in recent trading Wednesday. Customer and supply chain checks in the past month show Dell gaining momentum “in enterprise infrastructure, including competitive AI server wins and inflecting storage strength,” the report said. The trend suggests Dell’s “strongest forward spending intentions” in more than six years, Morgan Stanley said. Recent checks also indicate that component vendors and partners are aiming for the higher end of the estimate for AI server builds in 2024, potentially reaching 60,000 for Dell, the report said. “All in, we are hearing about more AI server momentum” at Dell

An analyst sees Dell getting more competitive with its rival Shares of Dell Technologies Inc. are near record territory, and one analyst sees plenty of reasons why their momentum can continue. Melius Research’s Ben Reitzes thinks Dell (DELL) is picking up market share in servers – and has room to keep doing so as it receives more graphics processing units from Nvidia Corp. (NVDA), gains more traction with its liquid-cooling offerings and becomes more competitive at winning larger customers. While Dell shares are up 217% in the past year in large part due to traction for its servers that meet artificial-intelligence use cases, rival Super Micro Computer Inc. (SMCI) has seen its stock jump more than 800% in that span. Reitzes thinks Dell can improve its positioning in the eyes of customers and investors. “Signs point toward Dell having won more orders from Tier 2 clouds and amajor private AI

Goldman Sachs analyst Michael Ng maintains Dell Technologies (NYSE:DELL) with a Buy and raises the price target from $87 to $129.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our 12-month target to $140 from $81 on a P/E of 16.3x our FY 26 (Jan.) EPS view, above its three-year historical forward average, reflecting a PC market rebound. We up our FY 25 EPS view to $7.61 from $7.16 and set FY 26’s at $8.60. DELL posted Q4 EPS of $2.20 vs. $1.80, a $0.48 consensus beat. Sales fell 11%, better than feared, with a 12% decline from Client Solutions (commercial -11%, consumer -19%), and a 6% decline from Infrastructure Solutions (servers/network -2%, storage -10%), on lower PC unit sales, partly offset by higher average selling prices. AI-optimized server orders were +40% Q/Q and the AI backlog exited FY 24 at $2.9B, highlighting long-term potential. We see DELL benefiting from AI tailwinds and improving

Wells Fargo analyst Aaron Rakers maintains Dell Technologies with a Overweight and raises the price target from $85 to $140.

Dell Technologies (DELL.US) is expected to benefit from strength in artificial intelligence-optimized servers and a likely refresh cycle in personal computers, UBS Securities said in a note. Late Thursday, Dell reported an AI server backlog of $2.9 billion at the end of the fiscal year, which UBS said reflected an increase from $1.6 billion at the end of last quarter. The computer maker shipped $800 million of AI-optimized servers, implying AI orders were “strong” at $2.1 billion, UBS analysts David Vogt and Andrew Spinola wrote. “While the proliferation of AI infrastructure assets is in the early innings, the solid results this quarter particularly after the soft order intake ($100 million) in the final month of last quarter should be well received by the market,” Vogt and Spinola said in the note emailed Friday. The brokerage raised its price target on Dell’s stock to $113 from $99 to reflect stronger near-term

Dell is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. For the fourth quarter, Dell posted revenue of $22.3 billion, down 11% from a year earlier. The figure was within the company’s guidance of $21.5 billion to $22.5 billion, and ahead of the analysts’ consensus as tracked by FactSet of $22.2 billion. Earnings on an adjusted basis were $2.20 a share, well ahead of the street consensus of $1.73 a share and the company’s forecast for $1.70 a share. Dow Jones & Co. owns Factiva.