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

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).

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).

The Best Stocks for High-Quality Investors

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.