Dell Technologies reported strong second-quarter results, with revenue up 19% driven by Servers and Networking revenue of $12.9 billion, a 69% increase in AI servers. However, shares fell over 5% in after-hours trading due to lower-than-expected third-quarter earnings per share guidance of $2.45, despite beating revenue estimates.

Dell raised its full-year revenue outlook to $107 billion and diluted earnings per share to $9.55, exceeding Wall Street estimates. The company plans to ship $20 billion in artificial intelligence servers in fiscal 2026, double the amount sold last year. Dell is a key customer of Nvidia, purchasing chips for AI servers.

Despite strong overall performance, Dell’s storage revenue declined 3% to $3.86 billion, missing estimates. Client solutions group revenue, including PC sales to enterprises, rose 1% to $12.5 billion. Dell spent $1.3 billion on share repurchases and dividends during the quarter. The company cited seasonality as a reason for concentrating profit forecast in the fourth quarter.

Read more at CNBC: Dell earnings report Q2 2026