Dell Technologies shares rallied 8% in extended trading on Thursday after the company raised its full-year revenue and profit forecast.
The company forecast third-quarter revenue between $22.5 billion and $23.5 billion beating analysts’ estimates of $21.67 billion, according to Refinitiv data. Dell expects earnings per share of $1.45, plus or minus 10 cents compared with estimates of $1.38, Reuters reported.
For the full year, Dell Technologies now expects revenue between $89.5 billion and $91.5 billion, and earnings per share of $6.30, plus or minus 20 cents, the report added.
Dell’s second quarter revenue and EPS beat analyst estimates.
The company’s servers and networking revenue during the second quarter rose 11% QoQ to $4.27 billion, driven by higher demand for AI-optimized servers.
Revenue at the company's client solutions group (CSG) - home to its consumer and enterprise PC business - increased 8% from the first quarter to $12.94 billion.
The improved outlook comes as the company benefited from the artificial intelligence (AI) boom and stabilizing demand for computer hardware and server products.
The company is expected to see a demand boost for its PowerEdge servers and generative AI designs with Nvidia from rising investments in AI by Big Tech companies.
“AI is already showing it's a long-term tailwind, with continued demand growth across our portfolio,” Chief Operating Officer Jeff Clarke said.
(With inputs from Reuters)
