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Shares of the Round Rock, Texas-based company rose 5% in extended trading.
The results are the latest sign that a downturn in tech spending could be drawing to a close after major networking equipment provider Cisco (NASDAQ:CSCO) also beat quarterly revenue estimates.
Dell is also seeing a better demand environment, Chief Operating Officer Jeff Clarke said.
The company, which earlier this year slashed more than 6,000 jobs, is expected to see a demand boost for its PowerEdge servers and generative AI designs with Nvidia (NASDAQ:NVDA) from rising investments in artificial intelligence by Big Tech companies.
“AI is already showing it’s a long-term tailwind, with continued demand growth across our portfolio,” Clarke said.
Servers and networking revenue for the second quarter came in at $4.27 billion, up 11% from the first quarter, driven by higher demand for AI-optimized servers, Dell said.
The personal computer maker reported revenue of $22.93 billion for the quarter ended Aug. 4, compared with estimates of $20.85 billion, according to Refinitiv data.
Revenue at the company’s client solutions group – home to its consumer and enterprise PC business – rose 8% from the first quarter to $12.94 billion.
Its infrastructure solutions group which includes servers, storage devices and networking hardware, reported revenue of $8.46 billion, up 11% sequentially.
The results are in sharp contract with rival HP Inc (NYSE:HPQ) which cut its annual forecast due to a slump in PC demand and weakness in China.
