Latest news with #ISG
Yahoo
2 days ago
- Business
- Yahoo
DELL Q1 Earnings Miss Estimates, Revenues Up Y/Y, Shares Fall
Dell Technologies DELL reported non-GAAP earnings of $1.55 per share in first-quarter fiscal 2026, missing the Zacks Consensus Estimate by 9.88%. The bottom line increased 17% year over increased 5% year over year to $23.38 billion and surpassed the consensus mark by 1.04%. The rise was primarily driven by growth across all its core segments. After the results were announced, shares of DELL plunged 0.84% in pre-market trading. Product revenues rose 9% year over year to $17.59 billion, beating the Zacks Consensus Estimate by 4.43%. Dell Technologies Inc. price-consensus-eps-surprise-chart | Dell Technologies Inc. Quote Services revenues declined 6% year over year to $5.77 billion missing the Zacks Consensus Estimate by 2.40%.Infrastructure Solutions Group (ISG) revenues increased 12% year over year to $10.31 upside can be attributed to servers and networking revenues of 6.32 billion, which grew 16% year over year, with demand strength across AI and traditional servers. Storage revenues increased 6% year over year to $3.99 the reported quarter, Dell Technologies' AI-optimized server momentum saw an increase of $12.1 billion in orders. The flagship PowerEdge XE9680 experienced strong demand, contributing to the momentum in the AI Technologies shipped $1.8 billion worth of AI servers in the fiscal first quarter, and the AI server backlog remained healthy at $14.4 revenues were $12.50 billion, up 5% year over year. Commercial Client revenues increased 9% year over year to $11.04 billion, while Consumer revenues fell 19% to $1.46 billion. The company's fiscal first-quarter non-GAAP gross profit increased 1% year over year to $5.05 billion. The gross margin contracted 80 basis points (bps) year over year to 21.6%.SG&A expenses fell 5% year over year to $2.96 billion. Research and development expenses increased 6% year over year to $808 million in the reported operating expenses declined 2% year over year to $3.39 billion. Operating expenses, as a percentage of revenues, contracted 110 bps on a year-over-year basis to 14.5%.The non-GAAP operating income was $1.66 billion, up 10% year over year. The operating margin expanded 30 bps year over year to 7.1%.The ISG segment's operating income jumped 36% year over year to $998 million. The CSG segment's operating income was $653 million, down 16% year over year. As of May 2, 2025, DELL had $7.70 billion in cash and cash equivalents compared with $3.63 billion as of Jan. 31, debt was $28.78 billion as of May 2, 2025, compared with $24.57 billion as of Jan. 31, company generated a cash flow from the operation of $2.8 billion. The adjusted free cash flow was $2.23 billion in first-quarter fiscal Technologies returned $2.4 billion of capital to its shareholders through $2 billion of share repurchases and paid out $396 million in dividends. For the second quarter of fiscal 2026, revenues are expected to be between $28.5 billion and $29.5 billion, with the mid-point of $29 billion suggesting 16% year-over-year Technologies anticipates 19% growth at the midpoint for the combined ISG and CSG, with ISG growing significantly and CSG up to a low-to-mid single earnings are expected to be $2.25 per share (+/- 10 cents), indicating 15% growth at the fiscal 2026, revenues are expected to be between $101 billion and $105 billion, with the mid-point of $103 billion indicating 8% year-over-year Technologies anticipates 10% growth at the mid-point for ISG and CSG combined, with ISG expected to increase in the high teens and CSG likely to grow in the low to mid-single digits. Non-GAAP earnings are expected to be $9.40 per share (+/- 25 cents), up 15% at the midpoint. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Dell Technologies has a Zacks Rank #3 (Hold) at APH, Juniper Networks JNPR and Upwork UPWK are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. APH, JNPR and UPWK sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks shares have gained 28.1% in the year-to-date period. The Zacks Consensus Estimate for APH's full-year 2025 earnings is pegged at $2.66 per share, up by 8 cents over the past 30 days, suggesting growth of 40.74% from the year-ago quarter's reported shares have lost 4% in the year-to-date period. The Zacks Consensus Estimate for JNPR's full-year fiscal 2025 earnings has been revised upward to $2.09 in the past 30 days, suggesting year-over-year growth of 21.51%.UPWK shares have lost 4.5% in the year-to-date period. The Zacks Consensus Estimate for UPWK's full-year 2025 earnings is pegged at $1.14 per share, implying a rise of 9.62% from the year-ago quarter's levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Upwork Inc. (UPWK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
2 days ago
- Business
- Yahoo
AI Helps Fuel Rush to Real-Time Data Platforms, ISG Says
Enterprises seek platforms to process, analyze streams of data for improved decision-making, customer experiences, new research says STAMFORD, Conn., May 30, 2025--(BUSINESS WIRE)--By 2027, more than three-quarters of enterprises will be able to process events and streaming data in real time, making them more responsive to customer needs and other requirements, according to new research from global AI-centered technology research and advisory firm Information Services Group (ISG) (Nasdaq: III). The ISG Buyers Guides™ for Real-Time Data, produced by ISG Software Research, provide rankings and ratings of over 25 software providers and their products for supporting the architectural shifts required for data to support AI for operations. The research finds that companies are seeking the ability to process and analyze data in real time to enable applications that deliver AI-driven personalization and recommendations. While most organizations have long relied on batch data processing, which was necessary when computing power was more limited, they are now looking for a new approach that supports the full benefits of AI. Real-time machine learning on operational data delivers instant, relevant information for faster decision-making. "Real-time data processing lets enterprises operate at the speed of business, acting on events as they happen," said Matt Aslett, director of research, ISG Software Research, and lead author of the reports. "As consumers seek AI-driven interactive applications, companies need information architectures that include streaming data and event processing." Until recently, real-time data processing was limited to industries with extreme high-performance requirements, such as financial services and telecommunications. Only 22 percent of enterprises analyze data in real time today, ISG says. However, the core concepts and technologies are proven, mature and readily available. The new ISG research finds that the top software providers have matured to deliver nearly 80 percent of the overall product and customer experience required to support enterprise needs. Real-time data processing begins with an event, which may be any change of state, such as a sensor identifying a new temperature reading, the reports say. With effective application integration, sensors, devices and applications can share messages about events as they occur, increasingly via application programming interfaces. Real-time data systems ingest, filter and aggregate data about events through stream processing. This forms the basis of stream analytics, which analyzes event data using SQL queries, machine learning or inferencing based on generative AI models. Mainstream enterprises are now pursuing real-time data processing to support interactive applications, and the proliferation of products in this field has helped lower the cost and technical barriers to developing new real-time applications, ISG says. Advanced data streaming platforms now enable organizations to combine data from multiple sources into a single stream. This requires stateful stream processing that retains the context of previously processed events and guarantees that messages are processed even if there are system failures or performance issues. Streaming data analytics platforms offer both traditional chart-based views of data and geospatial visualizations, which are critical for real-time analysis of IoT data. An enterprise-wide real-time data strategy requires an event-driven architecture that includes the full range of these functions, ISG says. Success with streaming data also depends on holistic management and governance of data both in motion and at rest. As enterprises consider their current and future data architecture needs, they should consider both real-time technologies and traditional batch data platforms so they can view all data in motion and at rest. For its 2025 Buyers Guides for Real-Time Data, ISG evaluated, rated and ranked 25 software providers across five platform categories – Real-Time Data, Application Integration, Messaging & Event Processing, Streaming Analytics and Streaming Data – and produced a separate Buyers Guide for each. A total of 42 providers were assessed: AWS, Actian, Adeptia, Aiven, Alibaba Cloud, Altair, Boomi, Broadcom, Celigo, Cleo, Cloud Software Group, Cloudera, Confluent, Cumulocity, Databricks, Frends, Google Cloud, GridGain, Hazelcast, Huawei Cloud, IBM, Informatica, Jitterbit, Kurrent, Materialize, Microsoft, MongoDB, Oracle, Palantir, Qlik, Qubole, Redpanda, Safe Software, Salesforce, SAP, SAS, SnapLogic, Solace, Striim, Tencent Cloud, and Workato. ISG Software Research rates software providers on seven performance categories. Five are product-related: usability, manageability, reliability, capability, and adaptability. Two are customer assurance-related: validation and total cost of ownership and return on investment (TCO/ROI). Providers ranked in the top three for each performance category are named as Leaders. Within each platform category, those with the most Leader rankings are named as Overall Leaders. The Overall Leaders of the 2025 Buyers Guides for Real-Time Data were the following: Real-Time Data: AWS earned the highest overall rating, followed closely by Google Cloud and Microsoft. AWS was designated a Leader in one category, Google Cloud in three categories and Microsoft in two. Confluent, Cloudera, Databricks, IBM, Informatica, Oracle and Solace were rated Exemplary. Alibaba Cloud, Cloud Software Group, Huawei Cloud and Redpanda were rated Innovative. Application Integration: Oracle topped the list, followed by Informatica and SAP. Oracle and Informatica were designated Leaders in five categories each, with SAP a Leader in two. AWS, Boomi, Google Cloud, IBM, Microsoft, Salesforce, Snaplogic and Solace were rated Exemplary, and Adeptia was rated Innovative. Messaging & Event Processing: Google Cloud earned the highest overall rating and was designated a Leader in three categories. AWS and Solace followed and were Leaders in two categories each. IBM and Microsoft were also rated Exemplary. Alibaba Cloud, Cloudera, Confluent and Redpanda were rated Innovative. Streaming Analytics: Databricks earned the top rating, followed by Oracle and Microsoft. Oracle was designated a Leader in all six categories, Databricks in five and Microsoft in two. AWS, Confluent and Google Cloud were rated Exemplary, while Cloud Software Group, Cumulocity, Huawei Cloud, Palantir and SAS were rated Innovative. Streaming Data: Databricks earned the highest overall rating and was designated a Leader in four categories. AWS was second-highest overall, followed closely by Microsoft, which was named a Leader in two categories. Cloudera, Confluent, Google Cloud, Informatica, IBM and MongoDB were rated Exemplary. Alibaba Cloud, Cloud Software Group, Cumulocity, Huawei Cloud, Palantir, Redpanda, SAS and Striim were rated Innovative. "To remain competitive, enterprises constantly need to analyze more data and act on it in real time, which requires the right real-time architecture and enterprise software," said Mark Smith, partner and chief software analyst, ISG Software Research. "This new provider research provides the industry's first-ever intelligence and insights on the portfolio of software options to meet enterprise needs." The ISG Buyers Guides™ for Real-Time Data are the distillation of more than a year of market and product research efforts. The research is not sponsored nor influenced by software providers and is conducted solely to help enterprises optimize their business and IT software investments. Visit this webpage to learn more about the ISG Buyers Guides™ for Real-Time Data and read executive summaries of each of the five reports. The complete reports, including provider rankings across seven product and customer experience dimensions and detailed research findings on each provider, are available by contacting ISG Software Research. About ISG Software Research ISG Software Research provides authoritative coverage and analysis of the business and IT software industry. It distributes research and insights daily through its user community, and provides a portfolio of consulting, advisory, research and education services for enterprises, software and service providers, and investment firms. Its ISG Buyers Guides™ help enterprises evaluate and select software providers through tailored assessments powered by ISG's proprietary methodology. Visit for more information and to sign up for free community membership. About ISG ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments. View source version on Contacts Press Contacts: Laura Hupprich, ISG+1 203 517 Julianna Sheridan, Matter Communications for ISG+1 978 518 4520isg@
Yahoo
2 days ago
- Business
- Yahoo
Dell Technologies Inc (DELL) Q1 2026 Earnings Call Highlights: Strong AI Server Demand and ...
Revenue: $23.4 billion, up 5% year-over-year. Earnings Per Share (EPS): $1.55, up 17% year-over-year. Gross Margin: $5.1 billion, or 21.6% of revenue, down 80 basis points. Operating Income: $1.7 billion, up 10%, or 7.1% of revenue. Net Income: $1.1 billion, up 13% year-over-year. Cash Flow from Operations: Record $2.8 billion for Q1. ISG Revenue: $10.3 billion, up 12% year-over-year. CSG Revenue: $12.5 billion, up 5% year-over-year. Commercial Revenue: $11.0 billion, up 9% year-over-year. Consumer Revenue: $1.5 billion, down 19% year-over-year. AI Server Orders: $12.1 billion in Q1, with $1.8 billion shipped. Storage Revenue: $4.0 billion, up 6% year-over-year. Shareholder Returns: $2.4 billion returned, including 22.1 million shares repurchased. Q2 Revenue Guidance: $28.5 billion to $29.5 billion, up 16% at midpoint. Full-Year Revenue Guidance: $101 billion to $103 billion, up 8% at midpoint. Warning! GuruFocus has detected 4 Warning Signs with MRVL. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dell Technologies Inc (NYSE:DELL) reported a 5% increase in revenue, reaching $23.4 billion, driven by growth across all core markets. Earnings per share increased by 17% to $1.55, growing three times faster than revenue. The company experienced unprecedented demand for AI-optimized servers, with $12.1 billion in orders booked in the first quarter. Dell Technologies Inc (NYSE:DELL) achieved record cash generation for the first quarter, with cash flow from operations reaching $2.8 billion. The company is leading in AI innovation, with significant advancements in AI infrastructure and partnerships with key industry players like NVIDIA and Google. Consumer revenue declined by 19%, indicating challenges in the consumer market. Gross margin decreased by 80 basis points due to a competitive pricing environment, particularly in the CSG segment. The demand environment for traditional servers moderated compared to the previous quarter, with a lower mix of higher-margin North American sales. Operating income rate improvements were partially offset by a more competitive environment and geographical mix challenges. The company faces variability in timing and choices around technology, leading to a non-linear nature of demand and associated shipments. Q: Can you provide insights on the AI server revenue performance and expectations for fiscal '26, given the significant backlog and increased engagement? A: Jeffrey Clarke, Co-Chief Operating Officer, explained that Dell had $12.1 billion in AI server orders in Q1, surpassing all of last year. The backlog is healthy at $14.4 billion, and the five-quarter pipeline continues to grow. Clarke expressed confidence in exceeding the $15 billion target for AI server revenue, emphasizing the complexity and dependencies of customer deployments. Q: How should we interpret the second-half guidance for AI servers, and what are the expectations for ISG and CSG demand? A: Clarke noted that Dell expects to ship $7 billion of AI servers in the first half, with a growing five-quarter pipeline. The enterprise component of the pipeline is expanding faster than the CSP part. Yvonne McGill, CFO, added that while they are optimistic about AI opportunities, they are maintaining a conservative full-year guide due to the dynamic environment. Q: Can you elaborate on the storage and services attach opportunities alongside AI servers? A: Clarke highlighted Dell's expansion of its storage portfolio and data management platforms, which are crucial for AI server nodes. While there has been modest improvement in storage and networking attach, significant progress has been made in deployment and installation services. Clarke emphasized the potential for increased storage attach, particularly in enterprise environments. Q: Are there any assumptions about tariffs in your numbers, and how should we view AI server margins? A: Clarke confirmed that the guidance includes all known tariff impacts, and Dell has successfully navigated these challenges. McGill added that the guide reflects a 10% quarter-over-quarter increase in gross margin dollars, driven by AI server profitability and improvements in the storage portfolio. Q: Is the incremental spend on AI servers affecting traditional server demand, and what drove the strong operating cash flow in Q1? A: Clarke stated that traditional server demand has grown for six consecutive quarters, with expectations for moderation. The market is projected to grow 4-5%, and Dell aims to outperform. Tyler Johnson, SVP, noted that strong cash flow was driven by profitability and working capital improvements, with no one-off impacts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Dell Technologies Inc (DELL) Q1 2026 Earnings Call Highlights: Strong AI Server Demand and ...
Revenue: $23.4 billion, up 5% year-over-year. Earnings Per Share (EPS): $1.55, up 17% year-over-year. Gross Margin: $5.1 billion, or 21.6% of revenue, down 80 basis points. Operating Income: $1.7 billion, up 10%, or 7.1% of revenue. Net Income: $1.1 billion, up 13% year-over-year. Cash Flow from Operations: Record $2.8 billion for Q1. ISG Revenue: $10.3 billion, up 12% year-over-year. CSG Revenue: $12.5 billion, up 5% year-over-year. Commercial Revenue: $11.0 billion, up 9% year-over-year. Consumer Revenue: $1.5 billion, down 19% year-over-year. AI Server Orders: $12.1 billion in Q1, with $1.8 billion shipped. Storage Revenue: $4.0 billion, up 6% year-over-year. Shareholder Returns: $2.4 billion returned, including 22.1 million shares repurchased. Q2 Revenue Guidance: $28.5 billion to $29.5 billion, up 16% at midpoint. Full-Year Revenue Guidance: $101 billion to $103 billion, up 8% at midpoint. Warning! GuruFocus has detected 4 Warning Signs with MRVL. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dell Technologies Inc (NYSE:DELL) reported a 5% increase in revenue, reaching $23.4 billion, driven by growth across all core markets. Earnings per share increased by 17% to $1.55, growing three times faster than revenue. The company experienced unprecedented demand for AI-optimized servers, with $12.1 billion in orders booked in the first quarter. Dell Technologies Inc (NYSE:DELL) achieved record cash generation for the first quarter, with cash flow from operations reaching $2.8 billion. The company is leading in AI innovation, with significant advancements in AI infrastructure and partnerships with key industry players like NVIDIA and Google. Consumer revenue declined by 19%, indicating challenges in the consumer market. Gross margin decreased by 80 basis points due to a competitive pricing environment, particularly in the CSG segment. The demand environment for traditional servers moderated compared to the previous quarter, with a lower mix of higher-margin North American sales. Operating income rate improvements were partially offset by a more competitive environment and geographical mix challenges. The company faces variability in timing and choices around technology, leading to a non-linear nature of demand and associated shipments. Q: Can you provide insights on the AI server revenue performance and expectations for fiscal '26, given the significant backlog and increased engagement? A: Jeffrey Clarke, Co-Chief Operating Officer, explained that Dell had $12.1 billion in AI server orders in Q1, surpassing all of last year. The backlog is healthy at $14.4 billion, and the five-quarter pipeline continues to grow. Clarke expressed confidence in exceeding the $15 billion target for AI server revenue, emphasizing the complexity and dependencies of customer deployments. Q: How should we interpret the second-half guidance for AI servers, and what are the expectations for ISG and CSG demand? A: Clarke noted that Dell expects to ship $7 billion of AI servers in the first half, with a growing five-quarter pipeline. The enterprise component of the pipeline is expanding faster than the CSP part. Yvonne McGill, CFO, added that while they are optimistic about AI opportunities, they are maintaining a conservative full-year guide due to the dynamic environment. Q: Can you elaborate on the storage and services attach opportunities alongside AI servers? A: Clarke highlighted Dell's expansion of its storage portfolio and data management platforms, which are crucial for AI server nodes. While there has been modest improvement in storage and networking attach, significant progress has been made in deployment and installation services. Clarke emphasized the potential for increased storage attach, particularly in enterprise environments. Q: Are there any assumptions about tariffs in your numbers, and how should we view AI server margins? A: Clarke confirmed that the guidance includes all known tariff impacts, and Dell has successfully navigated these challenges. McGill added that the guide reflects a 10% quarter-over-quarter increase in gross margin dollars, driven by AI server profitability and improvements in the storage portfolio. Q: Is the incremental spend on AI servers affecting traditional server demand, and what drove the strong operating cash flow in Q1? A: Clarke stated that traditional server demand has grown for six consecutive quarters, with expectations for moderation. The market is projected to grow 4-5%, and Dell aims to outperform. Tyler Johnson, SVP, noted that strong cash flow was driven by profitability and working capital improvements, with no one-off impacts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
3 days ago
- Business
- Forbes
Dell Earnings Preview - Will AI Impact Sales?
Close-up of signage at the regional headquarters of Dell Computers in the Silicon Valley town of ... More Santa Clara, California, July 25, 2017. (Photo via Smith Collection/Gado/Getty Images). Dell Technologies is scheduled to report earnings after Thursday's close. The stock hit a record high near $179.70/share in 2024 and, as of this writing, it is currently trading near $113. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting: The company is expected to report a gain of $1.69/share on $23.10 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.76/share. The Whisper number is the Street's unofficial view on earnings. Charts & Data Courtesy MarketSurge The company's earnings have been volatile over the last few years but are projected to grow going forward. In 2020, the company earned $7.35/share. In 2021, the company earned $4.88. In 2022, earnings grew to $6.22 and in 2023 earnings came in at $7.61. In 2024, the company earned $7.37. Looking forward, earnings are expected to grow to $8.14 in 2025, $9.21 in 2026, and $10.37 in 2027, largely due to AI. Meanwhile, the stock sports a price to earnings ratio of only 14 which is 0.6x the S&P 500. Technically, the stock has been in a downtrend since May 2024 but is currently trying to bottom. It managed to get above its declining 50 and 200 day moving average lines which is a welcomed sign for the bulls. The stock is 36% below its 52-week high which means it still has a lot of ground to recover. After earnings, the bulls want to see the stock gap up and rally and the bears want to see it gap down and fall. Here's the company profile, according to Yahoo! Finance: Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates in two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment provides modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage; and general-purpose and AI-optimized servers. This segment also offers networking products and services comprising wide area network infrastructure, data center and edge networking switches, and cables and optics that help its business customers to transform and modernize their infrastructure and complementing its server and storage solutions; and software, peripherals, and services, including consulting and support, and deployment. The CSG segment provides notebooks, desktops, and workstations and branded peripherals that include displays, docking stations, keyboards, mice, webcam and audio devices, and third-party software and peripherals; and configuration, support and deployment, and extended warranties services. The company is involved in originating, collecting, and servicing customer financing arrangements; and offers payment and consumption solutions and services, such as as-a-Service, subscription, utility, leases, and loans, as well as fixed-term loans. It serves enterprises, governmental agencies and other public institutions, educational institutions, healthcare organizations, small and medium-sized businesses, and consumers. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas. From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape. Disclosure: The stock has been featured on
