🔹 Revenue: $29.8B (Est. $29.2B) 🟢; UP +19% YoY
🔹 EPS: $2.32 (Est. $2.29) 🟢; UP +19% YoY
Q3 Guidance:
🔹 EPS: $2.45 (Est. $2.55) 🔴; UP +11% YoY
🔹 Revenue: $26.5-$27.5B (Est. $26.3B) 🟢; UP +11% YoY at midpoint
🔹 GAAP EPS: $2.07 at midpoint; UP +26% YoY
FY26 Guidance:
🔹 Revenue: $105-$109B (Est. $105.2B) 🟢; UP +12% YoY at midpoint
🔹 EPS: $9.55 (Est. $9.37) 🟢; UP +17% YoY at midpoint
🔹 GAAP EPS: $7.98 at midpoint; UP +25% YoY
🔹 AI Server Shipments: $20B (Prev. above $15B)
Other Q2 Metrics:
🔹 Operating Income: $1.8B; UP +27% YoY
🔹 Non-GAAP Operating Income: $2.3B; UP +10% YoY
🔹 Cash Flow from Operations: $2.5B; UP +90% YoY
Q2 Segment:
Infrastructure Solutions Group (ISG):
🔹 Revenue: $16.8B; UP +44% YoY
🔹 Servers and Networking: $12.9B; UP +69% YoY
🔹 Storage: $3.9B; DOWN -3% YoY
🔹 Operating Income: $1.5B; UP +14% YoY
🔹 Operating Margin: 8.8%
Client Solutions Group (CSG):
🔹 Revenue: $12.5B; UP +1% YoY
🔹 Commercial Client: $10.8B; UP +2% YoY
🔹 Consumer: $1.7B; DOWN -7% YoY
🔹 Operating Income: $803M; DOWN -2% YoY
🔹 Operating Margin: 6.4%
Other Key Metrics:
🔹 Net Income: $1.16B; UP +32% YoY
🔹 Non-GAAP Net Income: $1.59B; UP +13% YoY
🔹 Adjusted Free Cash Flow: $2.52B; UP +96% YoY
🔹 Capital Return to Shareholders: $1.3B
CFO Yvonne McGill's Commentary:
🔸 "In Q2, we achieved strong top-line results and profitability, reaching record revenue of $29.8 billion."
🔸 "We delivered another quarter of robust cash generation, with $2.5 billion in cash flow from operations and $1.3 billion in shareholder returns."
COO Jeff Clarke's Commentary:
🔸 "We've now shipped $10 billion of AI solutions in the first half of FY26, surpassing all shipments in FY25."
🔸 "This helped deliver another record revenue quarter in our Servers and Networking business, which grew 69%."
🔸 "Demand for our AI solutions continues to be exceptional, and we're raising our AI server shipment guidance for FY26 to $20 billion dollars."