Dell Technologies Inc. saw its shares climb 5% in after-hours trading on Tuesday after the computer maker posted quarterly results and an outlook that easily surpassed Wall Street's projections.

For the fiscal second quarter ended July 31, revenue came in at $46.97 billion, exceeding all analyst estimates and representing a roughly 58% year-over-year increase. Net profit reached $4.13 billion, or $6.34 per share, a sharp rise from $1.16 billion, or $1.70 per share, in the same period last year. Adjusted earnings per share, which exclude stock-based compensation, stood at $7.04, well ahead of the $4.92 anticipated by analysts.

Looking ahead to the fiscal third quarter, Dell Technologies Inc. guided for adjusted EPS of $6.50 on revenue of $49 billion, implying 81% growth. Analysts had modeled EPS of $4.49 and revenue of $41.42 billion.

The company also raised its full-year guidance considerably. Management now projects adjusted EPS of $25.50 and revenue of $192 billion. Analysts were expecting EPS of $18.92 and revenue of $172.67 billion. In May, Dell's fiscal 2027 outlook had called for adjusted EPS of $17.90 and revenue in the range of $165 billion to $169 billion.

Heading into Tuesday's close, Dell's stock had risen 236% for the year, far outpacing the S&P 500's 11% gain during the same period. The shares have become a favored pick among investors betting on sustained growth in artificial intelligence infrastructure.

In July, U.S. President Donald Trump, who has held Dell stock since returning to the White House last year, again recommended purchasing Dell computers. Founder, Chairman, and CEO Michael Dell is currently the world's fifth-richest person.

The Infrastructure Solutions Group, which sells data center hardware, posted second-quarter revenue of $31.78 billion, up 89% year over year and exceeding the $29.61 billion that analysts surveyed by StreetAccount had forecast. Within that segment, revenue from AI-optimized servers reached $16.40 billion, beating the StreetAccount consensus of $16.07 billion. Traditional server and networking equipment sales jumped 122% to $10.53 billion, while storage revenue rose nearly 26% to $4.85 billion.

Dell's Client Solutions Group, which sells PCs and peripherals to consumers and enterprises, contributed $15.03 billion in revenue, a 20% increase, though slightly missing the StreetAccount estimate of $15.08 billion.

During the quarter, Dell secured a $9.7 billion contract to provide software to the U.S. military, and AI-focused cloud infrastructure provider Iren agreed to purchase $1.6 billion worth of Dell hardware, including servers armed with Nvidia chips.

For the current fiscal year, Dell now expects AI-optimized server sales to reach $74 billion, a 200% increase. Just six months ago, the company had forecast growth of 103%. Executives are set to discuss the results with analysts beginning at 4:30 p.m. Eastern Time.