What you need to know before Dell’s earnings report is released

Key takeaways

Dell Technologies is scheduled to release its first quarter fiscal 2025 earnings report after the bell on Thursday, May 30.
According to analyst estimates compiled by Visible Alpha, the company is expected to report that revenue increased from the prior period, while net profit decreased.
Investors will be paying attention to the impact of artificial intelligence (AI) servers on Dell’s infrastructure solutions group segment.
Dell recently announced AI initiatives that strengthen its relationships with AI companies Nvidia and Microsoft.

Dell Technologies (DELL) is scheduled to report first-quarter fiscal 2025 earnings after the bell on Thursday, May 30, and investors will likely be watching for updates related to artificial intelligence (AI).

Analysts estimate Dell’s first-quarter fiscal 2025 revenue will be $21.56 billion, down from the previous quarter but up from the same period in fiscal 2024, according to estimates from Visible Alpha.

Net income is expected to be $428.65 million, down from the prior quarter and $578 million reported in the first quarter of fiscal 2024. Analysts expect diluted earnings per share (EPS) to be 57 cents vs. from 79 cents in the same period a year earlier.

Dell said seasonality affects its sales from quarter to quarter, with its strongest performance in the fiscal fourth quarter, according to data filed with the Securities and Exchange Commission (SEC).

	Analyst estimates for the first quarter of fiscal year 2025	Q4 2024	Q1 2024
Income	$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 indicators: Infrastructure solutions group revenues and orders for AI servers

Dell shares surged in February after the company saw revenue decline as its Infrastructure Solutions Group (ISG) grew 10% sequentially and orders for AI-optimized servers rose nearly 40%.

The company indicated that Dell is just starting to realize its AI potential, with Dell CEO Jeff Clarke stating that “strong growth in AI-optimized servers continues, with orders growing sequentially by nearly 40% and the backlog almost ending doubling, ending the fiscal year with $2.9 billion.” ”

Analysts expect ISG revenue to be $8.96 billion, which would be down from the prior quarter but up nearly 18% year-over-year. Seasonally, the fourth financial quarter is characterized by higher ISG revenues resulting from the sale of mass memory.

Business in Focus: AI Opportunities and Connections with Nvidia

Dell sought to show investors that the legacy computer company could benefit from the era of artificial intelligence.

The company recently announced that it will be expanding its artificial intelligence factory through a partnership with Nvidia (NVDA). Dell’s AI Factory with Nvidia “offers a full suite of AI solutions from the data center to the edge, enabling organizations to rapidly adopt and deploy AI at scale.”

Dell’s partnership with Nvidia has helped the company get a share of some of the AI darling’s profits. After Nvidia announced record profits, Dell’s shares surged as Nvidia CEO Jensen Huang called the company the chipmaker’s “rich ecosystem of partners.”

Dell also announced new AI-enabled PCs, part of a new category of Windows PCs designed for Microsoft Artificial Intelligence (MSFT). Dell could offer investors greater insight into how it intends to profit from the AI boom when it reports earnings, and how its AI offerings could impact its financial results.

Dell’s stock has more than doubled since the start of 2024, trading at $160.91 as of 2:45 p.m. ET on Friday.