Dell Technologies has reported a net income of $965 million on revenues of $23.4 billion for the quarter ending May 2, 2025, marking a revenue increase of 5 percent year-over-year. The company achieved record revenues of $6.3 billion in servers and networking, driven by unprecedented demand for its artificial intelligence-optimized servers. Significantly, Dell’s Client Solutions Group, which includes personal computers, generated $12.5 billion in revenues, also reflecting a 5 percent increase year-over-year. However, the consumer segment faced challenges, with revenues declining by 19 percent to $1.5 billion. Dell’s Infrastructure Solutions Group reported revenues of $10.3 billion, a 12 percent increase, highlighting strong demand for AI servers, as noted by company executives.
HP has reported second-quarter earnings for 2025 that exceeded analysts’ revenue expectations but fell short on earnings per share and guidance, leading to a 15% drop in shares. The company recorded adjusted earnings of 71 cents per share, while analysts had anticipated 80 cents. Revenue reached $13.22 billion, slightly above the expected $13.14 billion, and marked a 3.3% increase compared to $12.8 billion in the same quarter last year. HP’s net income decreased to $406 million, or 42 cents per share, down from $607 million, or 61 cents per share, a year earlier. The company’s outlook for the third quarter suggests adjusted earnings will be between 68 and 80 cents per share, missing the average analyst estimate of 90 cents. CEO Enrique Lores stated that the results were affected by U.S. tariffs and highlighted the company’s efforts to expand manufacturing outside of China, expecting to fully mitigate increased trade-related costs by the fourth quarter.
Why do we care?
HP’s earnings miss and share drop are being pinned partly on U.S. tariffs — and that’s a real warning signal. Despite modest revenue growth, profit was squeezed by trade friction. The response? HP is moving production out of China, but that takes time and capital. Vendors’ cost structures are under pressure, and that’s going to hit channel margins. Hardware bundles and PC sales tied to MSP agreements — particularly in SMB and midmarket — may get more expensive or less profitable.
Dell’s Client Solutions Group grew 5%, but its consumer revenues dropped 19%. The business PC market is stabilizing post-pandemic, but consumer demand is fragile. HP, which has a stronger consumer PC footprint, is seeing the pain more clearly. If your services model still depends on device resale or bundling (e.g., DaaS or HaaS), you’re exposed. This is a signal to shift toward endpoint management, identity-centric security, and experience optimization.