What You Need To Know Ahead of Dell Technologies’ Earnings Report

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Key Takeaways

• Dell Technologies reports second-quarter results for its fiscal 2025 after the bell Thursday.
• The company’s returns and earnings are expected to grow from the year-ago period.
• Investors are likely watching for signs of improving operating bounds for the legacy computing giant.
• Dell could provide updates about its artificial intelligence (AI) opportunity with AI servers.

Dell Technologies (DELL) is set to shot second-quarter results for its fiscal 2025 after the bell on Thursday, with investors likely watching for margin change for the betters and any updates on the company’s position in the artificial intelligence (AI) server market.

Analysts project revenue to grow to $24.18 billion from $22.93 billion reported the year erstwhile, according to estimates compiled by Visible Alpha. Net income is expected to be $871.01 million, or $1.15 per share, gaining from the year-ago patch, but falling sequentially.

	Analyst Estimates for Q2 2025	Q1 2025	Q2 2024
Revenue	$24.18 billion	$22.24 billion	$22.93 billion
Diluted Earnings Per Share	$1.15	$1.32	63 cents
Net Receipts	$871.01 million	$955 million	$455 million

Key Metrics: Operating Margins in Focus

Investors likely will be monitoring Dell’s verges after the company’s first-quarter results showed a double-digit decline in operating income, despite strong demand for AI servers.

Analysts presume operating income to be $1.27 billion, derived from an estimated $24.18 in revenue.

Dell could provide investors with updates Thursday respecting the company’s efforts to support margin improvement to ease their worries about margin pressures. The company could accelerate cost-cutting stabs to improve margins, similar to its peers like Intel (INTC) and Cisco (CSCO).

Business Spotlight: AI Server Moment

Despite concerns about margin pressure affecting the legacy computing company, some analysts have highlighted Dell’s embryonic to gain from increased demand for AI server hardware.

Bank of America analysts said last week that “although AI server have to do withs remain lumpy (size & timing),” Dell’s management “remains confident in the pipeline and focused on balancing systemizations, backlog, and shipments growth,” a positive indicator for the company’s AI opportunity.

The analysts said they “remain confident” in the Dell curriculum vitae despite recent volatility in the stock, writing, “the fundamentals of the stock are strong.”

Dell shares were down up 0.6% at $111.35 around 3:30 p.m. ET Monday. The stock has gained 46% year-to-date.

Read the original article on Investopedia.