Dell’s Q1 2025 Results

Dell reported first-quarter earnings on Thursday that topped analyst estimates for profits and sales as the company emerged as one of the top suppliers of artificial intelligence servers.

Shares fell about 12% in extended trading at one point before rebounding. When the company reported earnings in February, it said earnings per share were significantly higher than expected. Dell’s earnings this quarter were in line with Wall Street’s forecast.

Here are Dell’s results compared to LSEG consensus estimates:

• Earnings per share: $1.27 adjusted from $1.26 estimate
• Income: $22.24 billion compared to an estimate of $21.64 billion

The company said it expects current-quarter earnings of $1.65 per share and sales of between $23.5 billion and $24.5 billion. Analysts polled by FactSet expected $23.35 billion. Dell projected sales of $93.5 billion to $97.5 billion for the full fiscal year.

Dell reported net income of $955 million, or $1.32 per diluted share, for the quarter, compared to $578 million, or 79 cents, in the same period a year earlier. Overall sales for the quarter increased 6% year-over-year.

Dell’s data center division, called the Infrastructure Solutions Group, saw sales increase 22% year-over-year to $9.2 billion. The company said servers are a fast-growing entity, with sales up 42% to $5.5 billion, and noted strong demand for AI servers.

Dell has emerged as a leading provider of AI-centric servers, which are in high demand as companies invest in predictive and generative AI infrastructure. Earlier this year, Nvidia CEO Jensen Huang named Dell founder Michael Dell at the conference as the person to contact to place orders for the company’s new chips.

Dell said it recorded $2.6 billion in orders for “AI-optimized” servers this quarter.

Dell’s stock had more than doubled in 2024 ahead of Thursday’s report.

Dell’s desktop and laptop business, known as the Client Solutions Group, saw steady year-over-year growth, achieving sales of $12.0 billion.