Actually they beat and they raised. But when you dig into the detail, server bookings were less than the previous quarter. Yeah, well if we if we think about the timing of these deals, Caroline, there was one big deal that went in and it's unclear who it is, but it's probably one of the big neo cloud vendors, whether it's a core wave or or OCI.So it is going to be sequentially down. But if we think about it for a second half, the first half basis, it's 10 billion even second half versus first half. So, you ...

Core Viewpoint - Dell Technologies reported a significant increase in second-quarter revenue driven by AI server demand, but provided profit guidance that disappointed investors, leading to a decline in share price [1][11]. Financial Performance - The company achieved revenue of $29.78 billion, reflecting a 19% year-over-year increase, primarily due to strong demand for AI servers [1]. - Adjusted earnings per share (EPS) were $2.32, slightly exceeding Wall Street's consensus of $2.31 [1]. - For fiscal year 2026, Dell raised its revenue outlook to a maximum of $109 billion, up from a previous consensus of $104.59 billion, and adjusted its EPS forecast to a range of $9.40 to $9.55 from $9.38 [2]. Future Guidance - For the third quarter, Dell guided earnings of $2.45 per share, which is below analyst expectations of $2.55, citing margin pressures from supply chain costs and competitive pricing [3]. - Third-quarter revenue is projected to be between $26.5 billion and $27.5 billion, surpassing the $26.05 billion estimate [3]. Analyst Insights - JP Morgan analyst Samik Chatterjee maintained an Overweight rating with a price target of $145, highlighting stronger-than-expected AI server revenue of $8.2 billion compared to his estimate of $7.2 billion [4]. - Dell secured $5.6 billion in incremental AI orders, which contributed to a $4 billion increase in its fiscal 2026 revenue forecast midpoint [5]. - Goldman Sachs reiterated a Buy rating and raised its 12-month price target to $150 from $140, citing Dell's leadership in AI infrastructure and ongoing PC refresh opportunities [9]. Margin and Operational Outlook - Management anticipates margin recovery in the second half of the fiscal year, projecting average margins of about 10%, up from 7.4% in the first half, with profits expected to improve by approximately 35% [7]. - Analysts noted that while AI server demand is strong, there are pressures on margins from traditional servers and storage, which may limit flow-through to EBIT [10].

Core Insights - Dell Technologies Inc. reported earnings, providing insights into the AI infrastructure build-out process [1] - The company is considered one of the top three picks for investment in 2024, focusing on undervalued growth stocks and high-quality dividend growers [1] - Sustained profitability, characterized by strong margins, stable and expanding free cash flow, and high returns on invested capital, is emphasized as a reliable driver of returns [1] Financial Performance - Dell's earnings report highlights the company's financial health and its strategic positioning in the AI sector [1] - The focus on profitability metrics suggests a commitment to long-term growth rather than short-term valuation [1] Investment Strategy - The investment approach prioritizes a balance between growth and dividend income, indicating a strategy that appeals to both growth-oriented and income-focused investors [1] - The management of portfolios on platforms like eToro reflects a trend towards transparency and real-time investment decision-making [1]

Financial Data and Key Metrics Changes - The company reported record revenue of $29.8 billion, up 19% year-over-year [7][18] - Earnings per share (EPS) increased by 19% to $2.32, marking a Q2 record [7][20] - Operating expenses decreased by 4% to $3.3 billion, representing 11% of revenue [19][24] - Net income rose by 13% to $1.6 billion, driven by stronger operating income [20][29] Business Line Data and Key Metrics Changes - Infrastructure Solutions Group (ISG) revenue reached a record $16.8 billion, up 44%, with servers and networking revenue up 69% [20][21] - Client Solutions Group (CSG) revenue increased by 1% to $12.5 billion, with commercial revenue up 2% and consumer revenue down 7% [22][23] - PowerStore saw double-digit growth for six consecutive quarters, with 46% of buyers being new customers [12][21] Market Data and Key Metrics Changes - Demand for AI servers remained strong, with $5.6 billion in orders and $8.2 billion shipped in Q2 [8][21] - International markets showed growth, while North America experienced continued weakness [11][20] - The company noted a significant opportunity as over 70% of the installed base is running on older server generations [11] Company Strategy and Development Direction - The company is focused on driving revenue growth and share gains while maintaining profitability [30] - Continued investment in AI solutions is a key differentiator, with expectations for AI hardware and services market to double by 2028 [16][17] - The company aims to improve execution in the PC market, particularly with the upcoming Windows 10 end of life [14][122] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth and value creation opportunities ahead, particularly in AI and enterprise markets [30] - The company expects the demand environment for traditional servers and storage to persist into the second half of the year [25][29] - Guidance for Q3 revenue is projected between $26.5 billion and $27.5 billion, reflecting an 11% increase at the midpoint [26] Other Important Information - The company returned $1.3 billion to shareholders through stock repurchases and dividends [24] - The AI server shipment guidance was raised to $20 billion for the full year, up from $15 billion [25][29] Q&A Session Summary Question: AI server shipment guidance increase - Management confirmed the increase in AI server shipment guidance to $20 billion, citing strong demand and a growing pipeline [34][36] Question: Profitability improvement from Q2 to Q4 - Management indicated that profitability is expected to improve significantly in Q4 due to seasonal factors and a better mix of products [43][45] Question: Storage market performance - Management acknowledged a slowdown in large account demand, particularly in North America, but highlighted growth in PowerStore and all-flash storage [51][54] Question: AI server margins - Management discussed expectations for improved margins in AI servers due to a better business mix and reduced one-time costs in the supply chain [60][66] Question: Pipeline composition - Management noted that the pipeline includes a mix of sovereign and enterprise orders, with a focus on Blackwell technology [70][72] Question: Traditional server and storage profitability - Management indicated that moving towards more proprietary Dell storage and software would enhance profitability, despite current challenges [77][81] Question: Services revenue growth - Management emphasized the importance of growing services as part of the overall strategy to improve profitability [133]

Financial Data and Key Metrics Changes - The company reported record revenue of $29.8 billion, up 19% year-over-year [6][17] - Earnings per share (EPS) increased by 19% to $2.32, marking a Q2 record [6][19] - Operating expenses decreased by 4% to $3.3 billion, representing 11% of revenue [18] - Net income rose by 13% to $1.6 billion, driven by stronger operating income [19] Business Line Data and Key Metrics Changes - Infrastructure Solutions Group (ISG) revenue reached a record $16.8 billion, up 44%, with servers and networking revenue up 69% [19][20] - Client Solutions Group (CSG) revenue increased by 1% to $12.5 billion, with commercial revenue up 2% and consumer revenue down 7% [22] - PowerStore saw double-digit growth for six consecutive quarters, with 46% of buyers being new customers [12][20] Market Data and Key Metrics Changes - Strong demand for AI servers continued, with $5.6 billion in orders booked and $8.2 billion shipped in Q2 [7][20] - International markets showed growth, while North America experienced weakness [11][19] - The company noted a significant opportunity as over 70% of the installed base is running on older server generations [11] Company Strategy and Development Direction - The company is focused on driving revenue growth and share gains while maintaining profitability [29] - Continued investment in AI solutions is a key differentiator, with expectations for AI hardware and services market to double by 2028 [16] - The company aims to improve execution in the PC market, particularly with the upcoming Windows 10 end of life [14][116] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth and value creation opportunities ahead, particularly in AI and enterprise sectors [30][98] - The company expects profitability to improve in the second half of the year across ISG and CSG, especially within AI servers [25][28] - Management acknowledged challenges in the storage market but remains confident in outperforming the market with their Dell IP portfolio [50][72] Other Important Information - The company returned $1.3 billion to shareholders through stock repurchases and dividends [24] - Full-year revenue guidance was raised to between $105 billion and $109 billion, with a midpoint of $107 billion, reflecting a 12% increase [27][28] Q&A Session Summary Question: AI server guidance and capacity - Management raised AI server shipment guidance to $20 billion, indicating strong demand and capacity to meet it [33][37] Question: Profitability improvements in the second half - Management expects improved profitability driven by seasonal acceleration in storage and better execution in CSG [40][42] Question: Storage market performance - Management noted slower demand in large accounts, particularly in North America, impacting storage revenue [47][50] Question: AI server margins - Management indicated that margins for AI servers are expected to improve due to a better business mix and reduced one-time costs [54][66] Question: Pipeline and sovereign orders - The pipeline for AI servers includes a mix of sovereign and enterprise orders, with strong growth in both segments [64][66] Question: Supply chain dynamics - Management discussed deflationary pressures in input costs and the expectation of stable supply chain conditions moving forward [130][132]

Core Insights - HP Inc. reported third-quarter earnings for fiscal year 2025, with net revenue of $13.9 billion, representing a year-over-year increase of 3.1% [1] - The GAAP diluted net earnings per share were $0.80, up from $0.65 in the same period last year [1] - For the fourth quarter of fiscal year 2025, HP expects GAAP diluted net earnings per share to be between $0.75 and $0.85 [1]

Core Insights - HP reported revenue of $13.93 billion for the quarter ended July 2025, a year-over-year increase of 3.1%, with EPS of $0.75 compared to $0.83 a year ago, falling short of the Zacks Consensus Estimate of $13.96 billion by -0.19% [1] Financial Performance - The stock has returned +5.2% over the past month, outperforming the Zacks S&P 500 composite's +1.3% change, and currently holds a Zacks Rank 3 (Hold) [3] Key Metrics - Days in accounts payable: 138 days, above the average estimate of 133 days - Days of sales outstanding in accounts receivable: 33 days, slightly above the average estimate of 32 days - Days of supply in inventory: 68 days, in line with the average estimate of 69 days [4] Personal Systems Revenue - Net revenue from Commercial Personal Systems: $7.04 billion, below the average estimate of $7.11 billion, representing a +5.4% change year-over-year - Net revenue from Consumer Personal Systems: $2.9 billion, slightly above the average estimate of $2.89 billion, with a +7.5% year-over-year change - Total Net revenue from Personal Systems: $9.93 billion, below the average estimate of $10 billion, with a +6% year-over-year change [4] Printing Revenue - Net revenue from Printing Supplies: $2.6 billion, above the average estimate of $2.58 billion, but a -3.7% change year-over-year - Net revenue from Commercial Printing: $1.11 billion, slightly above the average estimate of $1.1 billion, with a -3% year-over-year change - Net revenue from Consumer Printing: $269 million, below the average estimate of $275.02 million, representing an -8.2% year-over-year change - Total Net revenue from Printing: $3.99 billion, above the average estimate of $3.95 billion, with a -3.8% year-over-year change [4] Earnings from Operations - Earnings from operations in Personal Systems: $541 million, above the average estimate of $529.65 million - Earnings from operations in Corporate Investments: -$32 million, significantly better than the average estimate of -$124.78 million [4]

Financial Data and Key Metrics Changes - Top line revenue increased by 3% year over year, driven by strong performance in Personal Systems [7][26] - Non-GAAP EPS was slightly above the midpoint of guidance, reflecting a sequential improvement of 6% [7][27] - Gross margin was 20.5%, down year over year due to a higher mix from Personal Systems and increased trade-related costs [26] Business Line Data and Key Metrics Changes - Personal Systems revenue grew by 6% year over year, with a 10% sequential increase [9][28] - Print revenue declined by 3% in constant currency, with a focus on maintaining profitable unit placements [13][30] - Strong growth in advanced compute solutions and digital services within Personal Systems [11][28] Market Data and Key Metrics Changes - Americas and EMEA regions grew by 1% in constant currency, while APJ was up 11% [26] - Strong performance in China contributed to Personal Systems growth [26][29] Company Strategy and Development Direction - The company aims to achieve $2 billion in annualized gross savings by the end of fiscal year 2025 [8][32] - Focus on shifting to higher value segments and maintaining cost discipline in response to trade-related costs [8][22] - Continued investment in AI capabilities to drive automation and streamline operations [22][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the PC market, expecting mid-single-digit growth in the second half of 2025 [21][36] - Anticipated decline in the print market by low single digits in 2025, with a strategy focused on protecting operating profit [21][36] - Management acknowledged ongoing uncertainty in the global trade environment but emphasized operational agility [23] Other Important Information - The company has achieved 100% renewable electricity across U.S. operations, marking progress towards net-zero goals [19] - New AI-powered solutions and innovations were highlighted, including the introduction of HP Dimension and AI capabilities in printing [17][18] Q&A Session Summary Question: Impact of tariff-related costs - Management indicated that they were able to mitigate the majority of tariff costs in Q3 through supply chain optimization and pricing actions [40][42] Question: Outlook for the print business amid return to office initiatives - Management noted that while hardware sales were impacted short-term, the demand for printing remains stable, indicating a potential recovery in the future [46][47] Question: AIPC pricing and margin profile - AIPCs are expected to carry a higher average selling price (ASP) and margin compared to non-AIPCs, with a projected price increase of 5% to 10% [49] Question: Q4 EPS guidance and margin dynamics - Management expects sequential revenue growth in line with prior year seasonality, driven by holiday uptick and continued momentum from Windows 11 [50][51] Question: PC market confidence and share growth - Management expressed confidence in sustained demand for PCs, driven by Windows 11 and AIPC adoption, with expectations for continued growth into fiscal year 2026 [60][72] Question: Print margins and pricing environment - Management acknowledged a competitive pricing environment but expects print margins to improve in Q4 due to higher supplies volume and disciplined pricing [61][66]

This presentation contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operations of HP Inc. and its consolidated subsidiaries ("HP") which may differ materially from those expressed orimplied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements ...

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