Dell Technologies (NYSE: DELL) is rocketing higher after the tech giant reported fiscal second-quarter results that significantly exceeded Wall Street expectations and raised its outlook for the year. The company reported adjusted earnings per share of $7.04, compared with the $4.92 expected. Revenue reached $46.97 billion, topping the $44.92 billion estimate.
Net income climbed to $4.13 billion, or $6.34 per share, from $1.16 billion, or $1.70 per share, in the same period a year earlier. The company also delivered a stronger-than-expected forecast for the current quarter. For its fiscal third quarter, the company expects adjusted earnings of $6.50 per share on revenue of approximately $49 billion.
That revenue forecast represents roughly 81% growth and is well above the $41.42 billion expected by analysts. Analysts had been forecasting adjusted earnings of $4.49 per share.
The company also raised its full-year outlook. Dell now expects $25.50 in adjusted earnings per share and $192 billion in revenue, compared with Wall Street estimates of $18.92 per share and $172.67 billion in revenue.
The guidance marks a sharp increase from the company’s outlook earlier in the year.
In May, the company had projected $17.90 in adjusted earnings per share and revenue of between $165 billion and $169 billion. COO Jeff Clarke said on a call with analysts that rising input costs and resulting price increases are contributing to the higher revenue forecast.
Dell’s PC Business Shows Signs of Weakness
However, the company’s PC business delivered a more mixed performance.
Its Client Solutions Group, which sells personal computers and accessories to consumers and commercial customers, reported $15.03 billion in revenue, up 20% year over year but slightly below the $15.08 billion expected.
Clarke said Dell had seen signs earlier in the year that the PC market could weaken during the second half. As a result, the company shifted resources and products toward its infrastructure business. The strategy reflects Dell’s broader transformation from a traditional PC maker into a major supplier of data center and AI infrastructure.
Dell Wins Billions in AI and Government Contracts
Dell’s growing AI infrastructure business has been supported by major contracts and partnerships. During the quarter, the company received a $9.7 billion contract to provide software to the U.S. military. AI-focused cloud infrastructure provider Iren also agreed to purchase $1.6 billion worth of Dell hardware, including servers equipped with Nvidia chips.
Even better, the stock has become a popular way for investors to participate in the continued expansion of AI infrastructure.
Dell stock is entering the regular trading session with a significant technical catalyst that is not reflected in the daily chart. Shares closed the prior session at $425, down 6.8%, but were trading as high as roughly $462.50 in premarket trading, a gain of about 8.8% from that close. That puts the stock back above its 50-day simple moving average at $434.22 and changes the significance of the prior-session sell-off.
The first technical question is whether DELL can hold the $434 area after the market opens. The 50-day moving average had been trending higher and served as an important indicator of the stock’s intermediate-term uptrend. A premarket move back above that level is encouraging, but the more meaningful signal will come if buyers can keep the stock above it during regular trading.
The premarket price near $462.50 also puts the stock back into the middle of the trading range that has developed since June. The stock has repeatedly encountered resistance in the $475- $500 range, with $500 as the most important psychological barrier. If the earnings-driven rally can push through $475 and eventually reclaim $500, the chart would become considerably more bullish and could signal a resumption of the powerful uptrend that began earlier this year.
There is still a momentum question to resolve. The MACD had turned bearish on the chart, with the MACD line around 5.00 below the signal line near 8.95 and a negative histogram. That reflected the weakness visible at the prior close. However, technical indicators based on daily closing prices will not immediately capture the significance of a sharp premarket earnings reaction. If the stock holds its premarket gains and closes substantially higher during Wednesday’s session, the MACD could begin to turn higher in subsequent sessions.
Volume will be particularly important. A large earnings-related move accompanied by heavy regular-session volume would provide considerably more confirmation than a premarket spike that fades after the opening bell. Investors should therefore watch whether buyers continue to support the stock once normal trading begins.
The setup creates several important levels to watch. Around $434 is the first support level, because it represents the 50-day moving average. The $450-$462 area is the immediate zone created by the premarket move. Above that, $475 becomes the next important resistance area, followed by the psychologically significant $500 level. On the downside, a failure to hold $434 would suggest that the market is rejecting the initial earnings reaction and could put the $400 area back into focus.
For now, the premarket action significantly improves the technical picture. Rather than entering the regular session with DELL sitting below its 50-day moving average after a 6.8% decline, investors are looking at a stock that has potentially reclaimed that key trend indicator before the opening bell.
The important distinction is that a premarket gain is not yet a confirmed breakout. If the stock can hold above $434 and challenge $475-$500 on strong volume, the earnings reaction could mark the beginning of another leg higher. If the premarket gains evaporate quickly, however, investors will want to see whether the 50-day moving average can still provide support.
This gives the stock a particularly interesting technical setup: the fundamentals have produced a powerful premarket reversal, and the regular session will determine whether that reversal becomes a genuine technical breakout.
What’s Next for Dell Stock After Earnings?
The results also further boosted the fortunes of Dell founder, chairman and CEO Michael Dell, who is now the world’s fifth-richest person, according to Bloomberg. After the results were released, Dell posted on X: “There’s an old Texas saying I may have just made up… If you keep growing EPS 200%+ y/y something good will happen.”
For Dell Technologies, the latest quarter suggests that something very good is happening. With AI server demand accelerating, major customers committing billions of dollars to infrastructure, and the company raising its forecasts, Dell is increasingly positioned as a major beneficiary of the AI spending boom.
