Dell shares jump 5% after server maker reports fastest sales growth since return to public market in 2018
Dell has reported its fastest revenue growth since returning to the public market in 2018, exceeding analysts' expectations. The company's stock surged 13% in after-hours trading following the announcement. Key drivers of this growth include a significant increase in AI server revenue and a new contract with the Pentagon.
- ▪Dell's revenue soared nearly 88% year-over-year to $43.84 billion, surpassing the expected $35.43 billion.
- ▪AI server revenue increased by 757% to $16.1 billion, with a full-year projection of $60 billion.
- ▪The company's net income more than tripled to $3.44 billion in the latest quarter.
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Dell reported its fastest pace of revenue growth for any period since its return to the public market more than seven years ago, and topped analysts' estimates for sales and profit. The stock climbed 13% in extended trading on Thursday. Here's how the company did in comparison with LSEG consensus:Earnings per share: $4.86 adjusted vs. $2.94 expectedRevenue: $43.84 billion vs. $35.43 billion expectedRevenue soared nearly 88% from a year earlier in the quarter, which ended on May 1, according to a statement. Since its IPO in 2018, which came five years after the server maker was taken private, year-over-year growth has never exceeded 39%, a mark that was hit in the January period.
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