:max_bytes(150000):strip_icc()/GettyImages-2153044275-263cadea0379440eb8ede6587bcefdd8.jpg "Dell Stock Falls as Earnings, Revenue Beat on Surging AI Server Demand Fails To Impress")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2153044275-263cadea0379440eb8ede6587bcefdd8.jpg)
Key Takeaways
- Dell Technologies reported first-quarter revenue and earnings that beat analysts’ estimates.
- Surging demand for artificial intelligence servers helped, boosting Dell’s servers and networking revenue to a record high.
- However, Dell’s operating income declined 14% from the same period the previous year.
- Shares of Dell dropped over 17% in extended trading Thursday following the release, as the company’s results failed to impress.
Dell Technologies (DELL) reported first-quarter revenue and earnings that beat analysts’ estimates on surging demand for artificial intelligence (AI) servers, though shares tumbled over 17% in extended trading Thursday as Dell’s results failed to impress.
Dell reported revenue of $22.24 billion for the fiscal first quarter of 2025, up 6% from the year-ago period, and above analysts’ expectations, according to estimates compiled by Visible Alpha.
Net income came in at $955 million or $1.32 per share, versus $578 million or 79 cents per share in the same period a year prior, also beating analysts’ projections.
| Q1 FY25 | Analyst Estimates for Q1 FY25 | Q1 FY24 | |
| Revenue | $22.24 billion | $21.51 billion | $20.92 billion |
| Diluted Earnings Per Share | $1.32 | 57 cents | 79 cents |
| Net Income | $955 million | $428.59 million | $578 million |
Despite revenue and earnings beating analysts’ expectations, Dell reported a double-digit decline in operating income. Operating income was $920 million, down 14% from the year-ago period.
Last quarter, AI momentum sent Dell’s stock price soaring in the wake of the company’s earnings release. Dell Chief Operating Officer (COO) Jeff Clarke reassured investors about Dell’s AI potential, saying “no company is better positioned than Dell to bring AI to the enterprise.”
He added that “servers and networking hit record revenue in Q1, with our AI-optimized server orders increasing sequentially to $2.6 billion, shipments up more than 100% to $1.7 billion, and backlog growing more than 30% to $3.8 billion.”
Dell shares were down 17.2% at $140.73 in extended trading as of 5 p.m. ET Thursday following the company’s earnings release.