UPDATE—May 30, 2024: This article has been updated to reflect more recent analyst estimates and share price information.
Key Takeaways
- Dell Technologies is set to release its first-quarter earnings report for the 2025 fiscal year after the bell on Thursday.
- The company is expected to report that revenue gained from the year-ago period while net income fell, according to analyst estimates compiled by Visible Alpha.
- Investors will be watching for 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 heavyweights Nvidia and Microsoft.
Dell Technologies (DELL) is set to report earnings for the first quarter of the 2025 fiscal year after the bell on Thursday, with investors likely to be watching for updates related to artificial intelligence (AI).
Analysts project Dell's revenue to be $21.51 billion for the first quarter of fiscal 2025, down from the previous quarter, but up from the same period in fiscal 2024, according to estimates compiled by Visible Alpha.
Net income is expected to be $428.59 million, down from the quarter prior and the $578 million recorded in the first quarter of fiscal 2024. Analysts anticipate dilutedearnings per share (EPS) of 57 cents, compared with 79 cents in the same period a year earlier.
Dell said seasonality affects its sales quarter to quarter, with its strongest results in the fourth fiscal quarter, according to its filing with the Securities and Exchange Commission (SEC).
| Analyst Estimates for Q1 FY 2025 | Q4 FY 2024 | Q1 FY 2024 | |
| Revenue | $21.51 billion | $22.32 billion | $20.92 billion |
| Diluted Earnings Per Share | 57 cents | $1.59 | 79 cents |
| Net Income | $428.59 million | $1.16 billion | $578 million |
Key Metrics: Infrastructure Solutions Group Revenue and AI Server Orders
Back in February, Dell shares surged after the company reported a revenue beat as its Infrastructure Solutions Group (ISG) grew 10% sequentially with AI-optimized server orders jumping nearly 40%.
The company indicated that it's just the start of Dell realizing its AI potential, with Dell CEO Jeff Clarke saying that "strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at$2.9 billion."
Analysts expect ISG revenue to come in at $8.98 billion, which would represent a decline from the previous quarter, but an over 18% increase year-over-year. Seasonally, the fiscal fourth quarter tends to see stronger ISG revenue driven by storage sales.
Business Spotlight: AI Opportunity and Nvidia Ties
Dell has worked to show investors that the legacy computer company is positioned to gain amid the AI era.
The company recently announcedthat it would be expanding its AI factory through its partnership with Nvidia (NVDA). The Dell AI factory with Nvidia "offers a full stack of AI solutions from data center to edge, enabling organizations to quickly adopt and deploy AI at scale."
Dell's partnership with Nvidia has helped the company share in some of the AI darling's gains. After Nvidia reported blockbuster earnings, Dell stock popped as Nvidia CEO Jensen Huang called out the company as part of the chipmaker's "rich ecosystem of partners."
Dell also unveiled new AI PCs as part of Microsoft's (MSFT) new category of Windows PCs designed forAI. Dell could offer investors more insight into how it is positioning itself to gain from the AI boom when it reports earnings and how AI offerings may affect its financials.
Dell shares have more than doubled in value since the start of 2024, at $166.21 as of 11 a.m. ET Thursday ahead of the company's earnings release.
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Dell Technologies. "Dell Technologies Fiscal Year 2025 First Quarter Results."
U.S. Securities and Exchange Commission. "Form10-K Dell Technologies Inc."
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