Dell CFO on AI-driven earnings surge and $60B outlook (with Ed Ludlow)

Asks about the strong quarter and the $27 billion increase in the full-year outlook, with $60 billion in AI server sales.

Ed Ludlow

David Kennedy

Tremendous start: 88% revenue growth, 214% EPS growth, record cash flows. Built on real, durable, and accelerating global infrastructure demand. Production at scale gives us confidence to add $27 billion to revenue guide, now $167 billion, almost 50% increase year on year. EPS of $17.90.

Really looking forward to the year ahead.

Asks if this is coming from one single hyperscaler customer or if there is more granularity.

Ed Ludlow

David Kennedy

This is more broad-based across the ecosystem and our solutions. CSG growth 17% in Q1. Traditional server and networking business grew 92% in Q1. We've taken our AI server guide to $60 billion. Storage will grow every quarter. It is more prevalent across products, verticals, and customer base.

AI demand beyond the GPU in terms of opportunities ahead.

Asks about the $10 billion Pentagon defense deal and what it represents for Dell.

Ed Ludlow

David Kennedy

We have historically sold software over many years and support all federal agencies. This is another example of broad solutions. When any customer, federal or enterprise, looks to us for technology needs, we are there to help with long-standing relationships.

The $9.7 billion deal over 5 years is less than a billion dollars for this year, a very small part of the broad-based discussion.

Asks if Dell has set a new baseline for the AI server business going forward.

Ed Ludlow

David Kennedy

It goes beyond the AI server business. As we move from training models to inferencing, those workloads create a net new environment. We are seeing education elements come in as part of the opportunity. That makes it a more broad-based, durable growth over the long term.

If you look at our five-quarter pipeline, all individual verticals are growing in their own right, showing the scale and opportunity.

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