Dell shares climb after company raises full-year profit outlook on AI demand

Core Insights - Dell Technologies raised its full-year earnings forecast and provided a stronger-than-expected forecast for the current quarter, leading to a rise in shares during extended trading [1] - The company expects adjusted earnings per share of $2.25 for the current quarter, with revenue projected between $28.5 billion and $29.5 billion, significantly exceeding LSEG expectations [1][2] - Dell's adjusted earnings per share fell short of LSEG estimates despite in-line revenue [1] Financial Performance - Dell anticipates approximately $103 billion in revenue for the full year, aligning with LSEG expectations, while raising its full-year adjusted earnings forecast to $9.40, a 10 cent increase from previous guidance [2] - The company reported a 5% annual revenue growth and expects an 8% growth during the fiscal year [5] - Dell's Infrastructure Solutions Group generated $10.3 billion in sales during the quarter, a 12% increase, with $6.3 billion from servers and networking [5] AI Systems Demand - Dell attributes its strong guidance to $7 billion in artificial intelligence systems expected to ship during the quarter, which are higher-margin products [2] - The company has $14.4 billion in confirmed orders for AI systems in its backlog, with $12.1 billion recorded in the first quarter [4] - Dell is experiencing "unprecedented demand" for AI systems, particularly from second-tier cloud providers [3] Shareholder Returns - Dell significantly increased its shareholder capital return, spending $2.4 billion on share repurchases and dividends during the quarter [6] - For the entirety of fiscal 2025, Dell spent $2.58 billion on share repurchases [6]