After the U.S. stock market on August 29, local time, Dell, a major PC and server manufacturer, announced its financial results for the second fiscal quarter (May-July) of fiscal year 2024, with revenue for the quarter increasing 9% year-on-year to $25 billion, exceeding analysts' expectations of $24.53 billion, and adjusted non-generally accepted accounting principles (Non-GAAP) earnings per share reached $1.89, better than $1.74 in the same period last year and better than analysts' expectations of $1.71.

In terms of segment-specific revenue, Infrastructure Solutions Group (ISG), which covers server and data center systems, saw its second-quarter revenue rise 38% year-on-year to $11.65 billion, beating the $10.44 billion estimate of analysts surveyed by StreetAccount.

Second-quarter revenue from ISG surged 80% year-over-year to $7.76 billion, beating analyst estimates of $6.37 billion surveyed by StreetAccount. The ISG segment is mainly engaged in "server and networking" products, covering NVIDIA and AMD GPU-based AI servers as well as more traditional servers. Among them, the demand for AI servers in the second quarter increased by about 23% quarter-on-quarter to US$3.2 billion, and its backlog of orders reached US$3.8 billion.

Jeff Clark, Dell's chief operating officer, said on the earnings call, "We're doing our best to get all the big AI deals and get them deployed at scale. He attributed the revenue growth to the continued warming of servers, adding that there are billions of dollars in "pipeline orders" between Dell and enterprise and cloud vendors that have yet to be finalized.

Looking ahead to the third fiscal quarter (August-October), Dell forecasts that the revenue for the quarter will be between $24 billion ~ $25 billion, in line with the analyst estimate of $24.6 billion surveyed by StreetAccount.

Dell also revised its full-year revenue guidance upward to $955~98.5 billion from the original $93.5~97.5 billion, and its non-GAAP earnings per share also revised up to $7.80 (plus or minus $0.25) from the previous estimate of $7.65 (plus or minus $0.25).

Editor: Xinzhixun-Lin Zi

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