5 Must-Read Analyst Questions From Dell’s Q2 Earnings Call

September 04, 2025 at 01:30 AM EDT

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Dell’s second quarter was marked by robust revenue growth, propelled by record shipments of artificial intelligence (AI) servers and ongoing operational efficiency efforts. Management pointed to a surge in enterprise and sovereign demand for AI infrastructure, with orders spanning financial services, healthcare, and manufacturing sectors. CEO Jeff Clarke highlighted, “We have shipped more AI servers in the first half of this year than all of last,” underscoring the scale of customer adoption. However, the market’s negative reaction appears tied to a lower gross margin rate and softer traditional storage and North American server demand, particularly among large accounts. Executive remarks reflected an acute awareness of these mixed results, with Clarke acknowledging the “unacceptable” stagnation in storage growth and continued softness in federal spending.

Is now the time to buy DELL? Find out in our full research report (it’s free).

Dell (DELL) Q2 CY2025 Highlights:

Revenue: $29.78 billion vs analyst estimates of $29.23 billion (19% year-on-year growth, 1.9% beat)
Adjusted EPS: $2.32 vs analyst estimates of $2.29 (1.1% beat)
Adjusted EBITDA: $2.92 billion vs analyst estimates of $2.97 billion (9.8% margin, 1.8% miss)
The company lifted its revenue guidance for the full year to $107 billion at the midpoint from $103 billion, a 3.9% increase
Management raised its full-year Adjusted EPS guidance to $9.55 at the midpoint, a 19.5% increase
Operating Margin: 6%, in line with the same quarter last year
Market Capitalization: $83.88 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Dell’s Q2 Earnings Call

Aaron Christopher Rakers (Wells Fargo) asked about Dell’s ability to exceed its $20 billion AI server shipment goal. CEO Jeff Clarke responded that manufacturing capacity is sufficient and the pipeline remains robust, but emphasized customer deployment timelines as a constraint.
Wamsi Mohan (Bank of America) inquired about the drivers of expected profitability improvement in the second half. CFO Yvonne McGill pointed to seasonal storage strength, improved AI server margin rates, and ongoing operating expense reductions.
Erik William Richard Woodring (Morgan Stanley) questioned the source of storage weakness and future growth prospects. Clarke explained that large account demand was softer in North America, but proprietary Dell storage outperformed and should lead market growth in coming quarters.
Benjamin Alexander Reitzes (Melius Research) sought clarity on AI server margin improvement. Clarke and McGill cited reduced supply chain costs, value engineering, and stronger enterprise attach rates for higher-margin services as expected contributors.
Asiya Merchant (Citi) asked about the sustainability of PC market momentum post-Windows 10 refresh. Clarke said there is still significant opportunity as roughly half the installed base has yet to upgrade, and he expects the refresh cycle to extend into next year.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will focus on (1) the pace of AI pipeline conversion and the consistency of enterprise demand; (2) sequential recovery in storage revenue and margin mix, especially from proprietary offerings; and (3) the impact of the ongoing PC refresh cycle on commercial market share. Execution on margin improvement initiatives and the integration of new automation platforms in storage will also be critical signposts for Dell’s progress.

Dell currently trades at $123.55, down from $134.52 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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5 Must-Read Analyst Questions From Dell’s Q2 Earnings Call

Dell (DELL) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From Dell’s Q2 Earnings Call

Catalysts in Upcoming Quarters

The Best Stocks for High-Quality Investors

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