Dell Technologies has revealed its investment in AI is driving financial results for its fiscal 2025 second quarter.
Dell Technologies has reported revenue of $25 billion (up 9 percent) with operating income of $1.3 billion (up 15 percent).
Dell’s Infrastructure Solutions Group (ISG) revenue was $11.6 billion (up 38 percent) with operating income of $1.3 billion. Dell’s Servers and networking revenue was a record $7.7 billion (up 80 percent) with demand growth across AI and traditional servers. Dell’s Storage revenue was $4 billion (down 5 percent).
Dell says AI-optimized server demand was $3.2 billion, up 23 percent sequentially, and $5.8 billion year to date. Backlog for AI-optimized server was $3.8 billion. “Our pipeline has grown to several multiples of our backlog,” Jeff Clarke, vice chairman and chief operating officer, Dell Technologies, said.
Dell says traditional server demand grew sequentially for the fifth consecutive quarter and was up y-o-y for the third consecutive quarter. Dell says Core Storage demand grew double digits in the quarter. AI server pipeline expanded across both Tier 2 CSPs and enterprise customers.
Dell is supplying six AI optimized servers: XE9680L, XE9680, XE9640, XE8640, R750XA, and R760XA. Dell’s PowerScale storage is built to maximize speed between GPU and AI data platform. Dell says performance of F210, F710, and F910 is twice as fast as the competition.
Dell’s Client Solutions Group (CSG) revenue was $12.4 billion (down 4 percent) with operating income of $767 million. Dell’s PC revenue from Commercial clients was flat at $10.6 billion. Dell’s PC revenue from retail consumers was $1.9 billion, down 22 percent.
Dell says revenue for Q3 is expected to be in the range of $24 and $25 billion with a midpoint of $24.5 billion and 10 percent growth. Dell expects the combination of ISG and CSG to grow 14 percent at the midpoint, with ISG up in the low thirties.
Dell says revenue for fiscal 2025 is expected to be in the range of $95.5 and $98.5 billion with a midpoint of $97 billion and 10 percent growth. Dell expects ISG to grow roughly 30 percent and CSG to be flat to up low single digits. Dell expects the combination of ISG and CSG to be up 13 percent at the midpoint.
Baburajan Kizhakedath
