UPDATE – August 29, 2024: This article has been updated to reflect more recent stock price information.
Key findings
- Dell Technologies will report second quarter fiscal 2025 results after the market closes on Thursday.
- The company's sales and profits are expected to increase compared to the same period last year.
- Investors are likely watching for signs of improving operating margins at the established computer giant.
- Dell could provide updates on its artificial intelligence (AI) capabilities with AI servers.
Dell Technologies (DELL) will report second-quarter fiscal 2025 results after the market close on Thursday, with investors likely looking for margin improvements and news on the company's position in the artificial intelligence (AI) server market.
Analysts forecast revenue to increase from $22.93 billion last year to $24.18 billion. Estimates compiled by Visible Alpha. Net income is expected to be $871.01 million, or $1.15 per share, up from the same period last year but down from the previous quarter.
| Analyst estimates for Q2 2025 | 1st quarter 2025 | 2nd quarter 2024 | |
| revenue | 24.18 billion US dollars | 22.24 billion US dollars | 22.93 billion US dollars |
| Diluted earnings per share | 1.15 USD | 1,32 € | 63 cents |
| Net income | 871.01 million US dollars | 955 million US dollars | 455 million US dollars |
Key figures: Operating margins in focus
Investors will likely keep an eye on Dell's margins after the company's first-quarter results showed a double-digit decline in operating profit despite strong demand for AI servers.
Analysts expect operating profit of $1.27 billion, derived from estimated revenue of $24.18 billion.
Dell may update investors on Thursday on the company's efforts to improve margins to ease their concerns about margin pressure. The company may accelerate its cost-cutting efforts to improve margins, similar to its rivals Intel (INTC) and Cisco (CSCO).
Business Spotlight: AI Server Opportunity
Despite concerns about margin pressure at the incumbent computer company, some analysts have pointed to Dell's potential to benefit from increased demand for AI server hardware.
Bank of America analysts said last week that while the AI server business remains bumpy (size and timing), Dell's management “remains confident in the pipeline and focused on balancing growth in orders, backlog and shipment volumes,” a positive indicator for the company's AI opportunities.
The analysts said they “remain confident in Dell” despite the stock's recent volatility, writing, “The stock's fundamentals are strong.”
Dell shares were little changed in Thursday afternoon trading ahead of the company's earnings release. The stock has gained around 46 percent since the beginning of the year.
