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Dell a lot of stories within this one, David, you'll tell me it's a strong quarter. I think the market right now is staring at the outlook for the fiscal year ending January twenty seven, the one hundred and sixty seven billion dollars of sales, sixty billion of that being AI servers. Something in there is new, In fact, twenty seven billion dollars of something in there is new in the outlook. What is it?
Yeah, afternoon, Ed, look at a tremendous start to the quarter. Obviously in the year ahead, eighty eight percent revenue growth, your two hundred and fourteen percent EPs growth, and record cash flows. You're built on real, durable and accelerating globally. The amount of infrastructure that's needed out there. If you
look at this, you know, really production at scale. All of those things have given us confidence, as you say, to add to that full year guide, adding twenty seven billion dollars to the revenue one hundred and sixty sixty seven billion dollars now almost fifty percent increase year on year. EPs is seventeen dollars and ninety cents. Really strong, and you know, really looking forward to the year ahead.
David, is this coming from sort of one single hyperscala customer. Is it the neo clouds or is there more sort of granularity you can give me about what is actually happening.
In the world.
Completely acknowledge that the CPU server is back, right, that's clear in the quarter gone, But there must be something more happening under the surface here.
Yes, this is more broad based and more prevalent across the ecosystem and our solutions. So CSG growth seventeen percent growth in Q one, we're guiding almost similar in Q two you mentioned the traditional server networking business s grow ninety two percent, and Q one we're expecting a strong guide to go to the year. Obviously, we've taken up our AI storage guide, our server guide sixty billion dollars and storage will grow every single quarter to go to
the year. So it's more prevalent across our products, across our verticals, across our customer base. It's really more broad based. And you know AI demand if you like, beyond the GPU in terms of the opportunities ahead.
Can you quantify that the AI demand but beyond the GPU.
Yeah, if you look at our guide it's up twenty seven billion dollars. We've taken our AI guide up ten billion dollars from fifty billion to sixty billion. So obviously the rest is in our core business, and it's more prevalent across c ISG, traditional server and the storage market. So you know, strong across the board.
Been under the working assumption for quite a while. Now that the US government's your biggest customer, I think the world was a little bit surprised yesterday. I was a little bit surprised about the ten billion dollar defense deal basically two billion dollars per year for five years. What is that I'm trying to understand. Is Dell in the software game here in that deal or what does it represent to you?
David? Now, look, we're historically selling software over many years. We obviously support all the federal agencies in the US, but it's also more prevalent across the globe and all the government agencies. So this is just another mark, if
you like, in terms of the broad solutions. When any customer, whether it be federal or whether it be enterprise based, is looking for us to help them in their technology needs and the solutions, we're there to help them we have those long standing relationships and this isn't just another example of that.
And can I just double check something mechanically speaking? The nine point seven billion dollar deal is that reflected in the updated outlook you gave like it was something that was baked in.
Well, again, if you think of that the guide, we're up twenty seven billion dollars for the year. That contract is nine billion over five years, you know, and most it's a billion less than a billion dollars for this year. So again a very small part of what's a broad based discussion around broad technology opportunities, solutions that our customers are looking for and making sure we can fulfill as many customer needs as we can in this environment.
Some people might say, in this environment, what's a billion dollars here? Are there in any given cords or balance of financial year. I think the sense the analysts are trying to get from the call is the staying power of this demand, how sustainable it is. But I think another way of looking at it, David, is have you set yourself a new baseline going forward of what the world is like for particularly the AI server business.
Yeah, I think it goes beyond the AI server business. I think it's AI demand and total across the solution and infrastructure stack that's there. If you look at the broad based opportunities that are appearing, I think as we move from training models into inferencing, those inferencing workloads are creating a net new environment, a net new tim if you like, that's there to go attack and go balance.
From a customer perspective, we're seeing that and those education elements are coming in as part of the opportunity that's in front of us. We're excited by that, and I think that makes it a more broad based, durable growth over the long term for us as we see that.
I appreciate the You've outlined twice that it's broad based. Was there one big customer or even sector in the court of gone or one big customer sector for the outlook in the year that has changed the trajectory for you.
No, it's again more broad based. If you look at our segments neoclouds, Sovereign, those enterprise customers you'll have meant heard and spoke with Michael last week in relation to our five thousand customers in the enterprise side in relation to AI. As we broad based out those AI factories,
you know there's growing. If you look at our five quarter pipeline, all individual verticals are growing in their own right and it shows again that the scale and the opportunity that's both geo and virtual based