Dell’s COO, Jeff Clarke, noted that the company shipped $10 billion worth of AI solutions in the first half of 2025, surpassing the shipments recorded for the entire year of 2024.
Michael Dell, founder and CEO of Dell Technologies, Inc. (DELL), exuded optimism following the company’s quarterly results, but investors did not share his excitement and sent the stock more than 5% lower after the bell, weighed down by margin worries and a soft outlook.
In a post on X, Dell thanked the Dell team, customers, and partners for another successful quarter. Underlining the growth and evolution of the company, he said, “Revenue since I started $1.77 trillion.” Dell founded the iconic computer and peripherals manufacturing company in 1984 at the age of 19 with a paltry investment of $1,000.
Tesla CEO Elon Musk lauded the feat, replying to Dell on X: “Wow, Congrats!”
On Stocktwits, retail sentiment toward the Dell stock remained ‘extremely bullish’ (96/100) by late Thursday, although the degree of optimism improved from a day ago. The message volume on the stream increased to ‘extremely high’ levels.
Goldman Sachs analyst Michael Ng stated that the stock will likely pull back as the weaker-than-expected Infrastructure Solutions Group (ISG) margins increase concerns about longer-term artificial intelligence (AI) server margins, according to The Fly. The analyst maintained a ‘Buy’ rating and $140 price target for the stock, implying a 4% upside from Thursday’s close.
Dell’s key metrics for the second quarter of the fiscal year 2026 are as follows:
- Adjusted earnings per share (EPS): $2.32 (up 19% YoY) vs $2.29 consensus (Fiscal.ai)
- Revenue: $29.78 billion (up 19%) vs $29.19 billion consensus
The revenue marked a quarterly record, with the ISG revenue rising 44% to a record $16.8 billion. Within the segment, server and networking revenue reached a record $12.9 billion, while storage revenue declined by 3%.
The bottom-line results also marked a record. Dell’s COO, Jeff Clarke, noted that the company shipped $10 billion worth of AI solutions in the first half of 2025, surpassing the shipments recorded for the entire year of 2024. “Demand for our AI solutions continues to be exceptional,” he added.
The Client Solutions Group (CSG) revenue edged up 1% to $12.5 billion. CFO Yvonne McGill said. “We delivered another quarter of robust cash generation, with $2.5 billion in cash flow from operations and $1.3 billion in shareholder returns.”
Dell raised its AI server shipment forecast for fiscal year 2026 to $20 billion.
The company’s forward guidance, however, revealed that Dell’s EPS expectations for the current quarter fell short of Wall Street expectations.
Dell stock has risen 18% year-to-date.
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