Guidance: David Kennedy: For the full year, we are raising our revenue guide by $25 billion to $192 billion at the midpoint, up roughly 70%, with diluted non-GAAP EPS of $25.50, up approximately 150%.
Demand and orders: Jeffrey Clarke: Revenue was up 122% as demand remains exceptionally strong, supported by multiple vectors of growth.
Margins: David Kennedy: With gross margin improvement and the benefits of significant scale, operating income is expected to grow approximately 120% with over 2 points of rate improvement year-over-year.
Analyst Q&A
Analyst Amit Daryanani asked: And if I look at a traditional server growth of 122% was actually faster than AI compute and storage grew 26% as well. I think a worry folks will have is this driven by a combination of pricing and prebuys rather than real demand. So I don't know if you can spend some time just talking about what do you think is driving this demand? Management Jeffrey Clarke answered: Think about it. I think if we blend Q1 and Q2 together, we grew storage 17% in the first half of the year. We continue to see our Dell IP storage growing ahead of the market for 6 consecutive quarters on a demand basis. We could run off a bunch of fun numbers. PowerStore has now grown 10 consecutive quarters in a row. We have PowerScale 5 quarters in a row, ObjectScale 4 quarters in a row. Data Domain, 3 quarters in a row, our all-flash arrays have grown now 10 quarters in a row. So there is inherent demand. Our products are more competitive.
