Dell Beats Q1 Revenue Estimates with Adjusted EPS of $1.27, AI-Optimized Servers Drive Growth, Stock Falls 14%

May 30, 2024, 08:09 PM

Dell Technologies announced its first-quarter earnings, reporting an adjusted EPS of $1.27, surpassing the consensus estimate of $1.26. The company also reported revenue of $22.24 billion, exceeding the expected $21.65 billion. This marks a 6% year-over-year increase. The growth was driven by strong demand for AI-optimized servers, with the Infrastructure Solutions Group (ISG) revenue up 22% year-over-year to $9.2 billion, and servers and networking revenue up 42% year-over-year to $5.5 billion. Despite these positive results, Dell's stock fell by 14% in after-hours trading. Dell's market cap stands at $120.15 billion, with an operating income of $920 million and a diluted EPS of $1.32.