What You Need To Know Ahead of Dell's Earnings Report

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Key Takeaways

  • Dell Technologies is group to merchandise its first-quarter net study for nan 2025 fiscal twelvemonth aft nan doorbell connected Thursday, May 30.
  • The institution is expected to study that gross gained from nan year-ago play while nett income fell, according to expert estimates compiled by Visible Alpha.
  • Investors will beryllium watching for nan effect of artificial intelligence (AI) servers connected Dell's Infrastructure Solutions Group segment.
  • Dell precocious announced AI initiatives that fortify its relationships pinch AI heavyweights Nvidia and Microsoft.

Dell Technologies (DELL) is group to study net for nan first 4th of nan 2025 fiscal twelvemonth aft nan doorbell connected Thursday, May 30, pinch investors apt to beryllium watching for updates related to artificial intelligence (AI).

Analysts task Dell's gross to beryllium $21.56 cardinal for nan first 4th of fiscal 2025, down from nan erstwhile quarter, but up from nan aforesaid play successful fiscal 2024, according to estimates compiled by Visible Alpha.

Net income is expected to beryllium $428.65 million, down from nan 4th anterior and nan $578 cardinal recorded successful nan first 4th of fiscal 2024. Analysts expect diluted earnings per stock (EPS) of 57 cents, compared pinch 79 cents successful nan aforesaid play a twelvemonth earlier.

Dell said seasonality affects its income 4th to quarter, pinch its strongest results successful nan 4th fiscal quarter, according to its filing pinch nan Securities and Exchange Commission (SEC).

  Analyst Estimates for Q1 FY 2025  Q4 FY 2024  Q1 FY 2024
 Revenue  $21.56 billion $22.32 billion $20.92 billion
 Diluted Earnings Per Share  57 cents  $1.59  79 cents
 Net Income  $428.65 million  $1.16 billion  $578 million

Key Metrics: Infrastructure Solutions Group Revenue and AI Server Orders

Back successful February, Dell shares surged aft nan institution reported a gross hit arsenic its Infrastructure Solutions Group (ISG) grew 10% sequentially pinch AI-optimized server orders jumping astir 40%.

The institution indicated that it's conscionable nan commencement of Dell realizing its AI potential, pinch Dell CEO Jeff Clarke saying that "strong AI-optimized server momentum continues, pinch orders expanding astir 40% sequentially and backlog astir doubling, exiting our fiscal twelvemonth at $2.9 billion."

Analysts expect ISG gross to travel successful astatine $8.96 billion, which would correspond a diminution from nan erstwhile quarter, but a astir 18% summation year-over-year. Seasonally, nan fiscal 4th fourth tends to spot stronger ISG gross driven by retention sales.

Business Spotlight: AI Opportunity and Nvidia Ties

Dell has worked to show investors that nan bequest machine institution is positioned to summation amid nan AI era.

The institution recently announced that it would beryllium expanding its AI mill done its business pinch Nvidia (NVDA). The Dell AI mill pinch Nvidia "offers a afloat stack of AI solutions from information halfway to edge, enabling organizations to quickly adopt and deploy AI astatine scale."

Dell's business pinch Nvidia has helped nan institution stock successful immoderate of nan AI darling's gains. After Nvidia reported blockbuster earnings, Dell banal popped arsenic Nvidia CEO Jensen Huang called out nan institution arsenic portion of nan chipmaker's "rich ecosystem of partners."

Dell besides unveiled caller AI PCs arsenic portion of Microsoft's (MSFT) new class of Windows PCs designed for AI. Dell could connection investors much penetration into really it is positioning itself to summation from nan AI roar erstwhile it reports net and really AI offerings whitethorn impact its financials.

Dell shares person much than doubled successful worth since nan commencement of 2024, astatine $160.91 arsenic of 2:45 p.m. ET Friday.

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