💻 Dell announced results, record orders and an interesting outlook!
Dell Technologies $DELL proves that it is not just an electronics manufacturer, but a strategic player in enterprise IT infrastructure. Although earnings for the first fiscal quarter fell slightly short of expectations, sales beat estimates and the outlook for the next period was a pleasant surprise.
📊 Important numbers (Q1 FY26):
Revenue: USD 23.38 billion (expectations: USD 23.14 billion)
Earnings per share (non-GAAP): $1.55 ($1.69 expected)
Q2 Outlook:
Earnings per share: $2.25 (well above expectations)
Revenue: USD 28.5-29.5 billion
🤖 Artificial Intelligence as a growth driver
Dell reports "huge demand" for AI systems based on Nvidia chips, especially from cloud providers.
Currently, the company has confirmed in its portfolio AI orders worth US$14.4 billionof which USD 12.1 billion were secured in this quarter alone. These orders will translate into revenue in subsequent periods.
The company also raised its full-year earnings guidance to USD 9.40 per share, an increase of 10 cents higher than before.
🧱 Business growth:
Infrastructure Solutions Group (servers, network elements, data storage):
Revenue: $10.3 billion +12% YoY
Of which USD 6.3 billion was servers and networks
Client Solutions Group (PCs and Laptops):
Sales: USD 12.5 billion
Recovering global PC market contributes to growth
💰 Strong return on capital:
Q1 FY26: US$2.4bn in dividends and buybacks
Full FY25: US$2.58bn on buybacks
Dell thus strengthening its position not only in AI, but also not forgetting its shareholders. The company is transforming from a hardware manufacturer to a provider of end-to-end AI solutions. Orders for AI systems are in the billions, indicating long-term positive growth. The recovering PC market complements the company's strong performance, which is benefiting from business diversification.
What is your opinion of Dell?
I had previously considered buying $DELL or $HPQ, but ended up not buying anything.
For me this is not interesting at all and the performance is relatively weak.
The company is now growing solidly and the stock is cheap. I see this as a quality and stable stock, so I'll keep an eye on it.